Risky Trash (And You Don’t Own It)

Even with increasing occurrences of corporate data breaches, both electronically and via the theft of paper files, many businesses continue to throw out confidential information with the rest of the trash, and forgo including on site document destruction as part of their security policy. A recent Security Tracker survey conducted by Ipsos Reid found that 10% of C-level executives throw confidential information into the garbage, up from 1% in previous years. The survey also found that almost half of surveyed small business owners have no policies and procedures in place for storing and disposing of confidential information.*

From Rebecca Watson at McDemott Will & Emery:

In an opinion that should remind us all of the importance of properly disposing of documents, the District of Columbia Court of Appeals upheld the dismissal of Greenpeace’s claims of trespass, invasion of privacy, and conversion stemming, in part, from appellees’ alleged participation in rummaging through Greenpeace’s trash in order to obtain Greenpeace’s confidential information. Greenpeace, Inc. v. The Dow Chemical Co., Case No. 13-CV-685 (D.C. C.A., Aug. 21, 2014) (Blackburne-Rigsby, J.).

Greenpeace alleged that two companies, Dow Chemical and Sasol North America and their PR firms, engaged in corporate espionage in order to undermine Greenpeace’s efforts.  To this end, Greenpeace asserted that the companies hired Beckett Brown International (BBI), a company staffed with former Secret Service and CIA agents, to root through Greenpeace’s trash.  They further alleged that BBI broke into Greenpeace’s offices and conducted physical surveillance of Greenpeace employees. These actions only came to light when a disgruntled BBI employee alerted a reporter.

This case should serve as a reminder that companies should properly discard of documents containing confidential information.**

*http://www.sdbmagazine.com/digital/20141112/index.html

**http://www.jdsupra.com/legalnews/dont-throw-it-away-a-company-may-not-12121/