If card data isn’t property the way that customer data is, and isn’t transferable during an acquisition, then it’s hard to see how Fly Maid wasn’t in violation of the law here.
It seems like this should be readily answerable: in the event of an aquisition, does the acquirer have the legal right to use the card authorization token from the customers of the acquired startup? Note that Fly Maid did not charge them without their consent; they merely made the option available without them having to enter any CC info.
The reason I’m pressing this is because we’re talking about a YC alum + illegal behavior, which to my knowledge might even be a first.
Hopefully a lawyer might chime in with clarification. If Fly Maid was not authorized to utilize any of HomeJoy customers’ CC info during the course of business, regardless of acquisition, then this seems pretty clear cut.
It seems like this should be readily answerable: in the event of an aquisition, does the acquirer have the legal right to use the card authorization token from the customers of the acquired startup? Note that Fly Maid did not charge them without their consent; they merely made the option available without them having to enter any CC info.
The reason I’m pressing this is because we’re talking about a YC alum + illegal behavior, which to my knowledge might even be a first.
Hopefully a lawyer might chime in with clarification. If Fly Maid was not authorized to utilize any of HomeJoy customers’ CC info during the course of business, regardless of acquisition, then this seems pretty clear cut.