TD's lawsuit alleges that a user interface operated by San Francisco-based Plaid Inc. mimicked the bank’s trademarks
San Francisco-based Plaid Inc. has denied copying TD Bank’s trademark to deceive customers into providing sensitive personal data, after the bank’s US subsidiary has filed a civil suit against it.
The lawsuit filed in a New Jersey court alleged that Plaid’s financial services user interface aped TD’s colour scheme, official logos, and other identifying information.
Plaid’s software enables mobile finance apps like Coinbase, Stripe, Square, and Venmo to access bank and credit card info.
“Plaid’s intentional, unauthorized use of TD’s name and branding is deceptive,” said Greg Braca, president of the bank’s US subsidiary. “By mimicking TD’s login screen, Plaid creates the false impression that consumers are engaging directly with TD Bank or entering their banking credentials into TD’s digital and mobile app platforms or a platform authorized by TD when that is not the case.”
Plaid told The Canadian Press that it has made its role in transactions clear to consumers, and that it did not mislead them in any way.
“We were surprised by TD Bank’s decision to file suit in the midst of our good faith discussions, which are still ongoing,” said Plaid. “We have been working with TD for quite some time, and are disappointed that they resorted to litigation and false allegations. Plaid is publicly known for never selling or renting consumers’ personal information.”
In 2018, Plaid claimed that users of its products include the Bank of Montreal, the Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, and the Royal Bank of Canada. Plaid also claimed to have collaborated with fintech Wealthsimple and rewards business Drop.
The named firms did not comment on whether they would be filing, or have already filed, lawsuits similar to TD, Bloomberg reported.