Can my employee take customer data and start a business?
They told me they were leaving to start their own jewelry store. They told me they had no information from my store. They actually did. I confronted them and said they had 24 hours to return it and delete everything from their computer. They sent back over 120 appraisals with my customers’ personal information on them. I don’t know if that’s all they have. I have a customer base of over 9,000 customers.
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It would make sense to send them a cease and desist letter.
You’d send the cease and desist to make them stop using any stolen customer data, to formally demand deletion of anything they kept, and to protect your business reputation.
Even without a contract, their actions could still qualify as misappropriation under the Defend Trade Secrets Act if the appraisals and customer info were confidential and gave your business a competitive edge.
It also puts them on notice that if they keep using or sharing that data, you’re ready to escalate.
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They told me they were leaving to start their own jewelry store. They told me they had no information from my store. They actually did. I confronted them and said they had 24 hours to return it and delete everything from their computer. They sent back over 120 appraisals with my customers’ personal information on them. I don’t know if that’s all they have. I have a customer base of over 9,000 customers.
Lexi, Chatbot
When did this issue first arise?
Four weeks ago.
Lexi, Chatbot
Is there anything else the lawyer should know before I connect you? Rest assured they’ll be able to help with your business theft issue.
No
Michael M. Esq.
Hello! My name is Michael, and I'm an attorney ready to help! Your responses matter to me, so I only need a few minutes to review and respond to each of your posts.
Do you have any written agreements, like a confidentiality or non-compete clause, that those employees signed before they left?
Unfortunately, no I don’t.
Michael M. Esq.
Ok, thanks! Just a few more questions. Do you have any emails, texts, or other proof that shows they took the customer data or used it without permission?
I do have texts from me to them demanding it back, and I have emails from them returning over 120 customer appraisals to me. They also told another employee that one of them was having difficulty getting paid from me, which is totally untrue. That employee subsequently quit the next day.
Michael M. Esq.
Got it! Has any customer reached out with concerns or complaints since this happened, or have you noticed any business loss or reputation damage tied to their actions?
None as of now.
Michael M. Esq.
Understood! So you're just wondering what it is you can do here, correct?
Yes. I didn’t know if a cease and desist letter was in order, maybe an improper enrichment clause as well. I just don’t know exactly what they have and was hoping to put them on notice that if they try to use any information, I will take action.
Michael M. Esq.
Ok! Did you need to tell me anything else? If not, I can start with answering your question.
I can’t think of anything else at the moment.
Michael M. Esq.
Ok! I've been working on an answer while we've been chatting, so it'll just be a moment.
Michael M. Esq.
I'm so sorry about this situation! I want to address your situation with a detailed response, so if you have any questions, don’t hesitate to ask, because this law stuff can get complicated.
Michael M. Esq.
It would make sense to send them a cease and desist letter.
You’d send the cease and desist to make them stop using any stolen customer data, to formally demand deletion of anything they kept, and to protect your business reputation.
Even without a contract, their actions could still qualify as misappropriation under the Defend Trade Secrets Act if the appraisals and customer info were confidential and gave your business a competitive edge.
It also puts them on notice that if they keep using or sharing that data, you’re ready to escalate.
Michael M. Esq.
Does that help clarify things? I want to make sure I didn’t leave anything out.
Yes, that does clarify things. Would there be any case for an improper enrichment clause in the letter? Would it be more effective to have the letter come from an attorney, or do I just send it from myself?
Michael M. Esq.
Yes, you can mention unjust enrichment in the letter since they took your data and could be using it to benefit their own business.
Having it come from an attorney usually carries more weight and can make them take it more seriously, especially if you’re considering legal action later, but if cost is a factor, starting with your own version can still work as long as it’s direct and clearly worded.
I think it will have more impact from an attorney. They don’t take me seriously. Is this something that you or another attorney there can write the letter? If not, how would I go about finding one to handle this? Thank you.
Michael M. Esq.
I agree, and you are right. If they’re brushing you off, a letter from an attorney will likely get their attention fast. I don’t personally send letters, but you can find a local business or employment attorney through your state bar website or a trusted legal referral service.
Look for someone with experience in trade secrets, unfair competition, or small business disputes because they’ll know exactly how to frame this. Try www.contractscounsel.com.
It’s a site where you can post a job for free, then lawyers will bid on the job, and you get to choose which lawyer and negotiate the price as well.
Ok, thank you so much!
Michael M. Esq.
For sure! Did I thoroughly address your question? Did I provide top-tier service to you? If the answer is no to either, please let me know so I can help!
Michael M. Esq.
Did you have any other details you needed addressed or any concerns you still needed resolved?
Michael M. Esq.
So I haven't heard from you in a while, but that's ok! I hope I’ve provided the information you were seeking. If you need more help, please let me know so I can continue to assist you.
Michael M. Esq.
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