Legislative, Regulatory & Legal

The latest retail security breach may have exposed personal information of workers, rather than customers. According to The Denver Channel, a payroll employee of Phoenix-based, 220-plus-store Sprouts Farmers Markets provided W-2 tax form information from an unspecified number of the retailer’s personnel in response to a request in a fraudulent “phishing” email claiming to be from a company executive. The FBI and IRS are investigating the breach with cooperation from Sprouts.

Delays in the required certification of payment terminals that accept credit and debit cards with embedded chips are frustrating many retailers, particularly midsized ones, and also costing them as, since Oct. 1, stores that cannot accept chip cards have had to shoulder the cost of fraud — and banks are not shy about passing along the bill, the New York Times reported.

The CEOs of Staples and Office Depot penned a letter to customers which reveals the extent of their deteriorated relations with the Federal Trade Commission ahead of a hearing that begins March 21 that will determine whether the retailers are allowed to merge.

In the letter, Staples chairman and CEO Ron Sargent and Office Depot chairman and CEO Roland Smith stop short of actually calling the FTC stupid, but that is the inference from more diplomatically worded prose.

Should Walmart and Costco be required to pay employees the same minimum wage?

The answer is no, at least that’s the conclusion of a new study according to the National Center for Policy Analysis, a conservative think tank based in Dallas.

Albertsons on Monday submitted a binding bid letter and form of Asset Purchase Agreement to Haggen for the purchase of 29 of Haggen's core stores, confirming reports that Alebertsons would seek to acquire the remaining Haggen core. This is a step in the process to obtain bankruptcy court approval, following Haggen's Chapter 11 filing on September 8, 2015, which is required for consummation of the purchase.

Citing union sources, The Bellingham Herald on Tuesday reported that Albertsons is prepared to acquire the remaining core stores of Haggen with the blessing of the Federal Trade Commission. "It appears that other bidders are not going to raise their bids or otherwise make them qualified bids, so the scheduled auction is cancelled and the sale to Albertsons will be put before the court for approval in the next week," representatives of Haggen union workers released in a statement.

Supply chain issues are a potential threat for any retailer, but grocery chains need to be particularly vigilant in tracking products from source to shelf.

High-profile product recalls in recent years have resulted in brand damage, lawsuits, and even prison terms for executives of companies involved. While the source brands typically face more regulatory and legal ramifications, it is still wise for retailers of produce and other food items to invest in technologies that use automation to minimize the likelihood or impact of such events.

The Home Depot Inc. has reached a tentative settlement of consumer claims regarding a 2014 data breach that may have exposed personal and financial information of more than 50 million consumers.

Home Depot agreed to pay $13 million to reimburse affected consumers for out-of-pocket expenses and spend at least $6.5 million to offer 18 months of identity protection services for holders of cards that may have been exposed. The retailer also agreed to improve its data security and to hire a chief information security officer.