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Massachusetts, Rhode Island Open TJX Probes

February 15, 2007

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Massachusetts and Rhode Island are opening investigaitons into the security breach involving the TJX computer system, which put the private data of thousands of shoppers at risk of identity theft.

Massachusetts Attorney General Martha Coakley said her office is leading a multi-state civil investigation into the breach.

Rhode Island Attorney General Patrick C. Lynch filed a "civil investigative demand" (CID) in Providence County Superior Court against The TJX Companies Inc. for its alleged failure both to prevent intrusions into its computer network and to use every available means to notify consumers of the recent security breach as soon as possible.

Lynch's CID alleges that TJX, a Delaware corporation with its principal place of business in Framingham, MA, has put thousands of consumers at risk for fraud and identity theft. TJX is the parent corporation of stores such as T.J. Maxx, Marshalls, Bob's Stores, and HomeGoods.

TJX made public, on January 17th, a security breach of its computer systems that affects millions of consumers nationwide. More recently, the company has disclosed that the breach could have occurred as far back as 2003.

"TJX owes its customers respect, not neglect," Lynch said. "By being negligent in its security procedures and by failing to employ immediate and aggressive methods to notify their many customers of the distinct possibility that their identities had been -- or were at risk of being -- stolen, TJX has displayed disregard for its customers."

A CID initiates an investigation of alleged violations of Rhode Island's Deceptive Trade Practices Act. Although facts obtained through the investigation cannot be made public, the law requires that the CID be filed with the Superior Court. As such, it is a public record.

Massachusetts was taking a more conciliatory tone with the company, based in Framingham, Mass.

"TJX has been very cooperative with the Attorney General's Office, and we are interested in continuing to work closely with the company so that we can protect Massachusetts consumers and the marketplace from credit card and other fraud," said Attorney General Coakley.

Since taking office last month, Coakley has said she would crack down on identity theft and credit card fraud.

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