A US games developer has been forced to change its approach to
customer privacy following legal proceedings by an Attorney General
over use of its web site and downloadable games which contained a
so-called spyware program.
The Michigan Attorney General, Jennifer Granholm, issued a
Notice of Intended Action under the Michigan Consumer Protection
Act to Pennsylvania-based eGames in September 2000, alleging that
eGames had not adequately warned consumers that its games software
also included a spyware program which enabled a third-party
advertiser to secretly interact with eGames' customers'
computers.
The spyware program specifically enabled an advertising company
called Conducent to make use of consumers' Internet connections to
interact with consumers' computers. Granholm also alleged that
eGames permitted third parties to monitor consumers' browsing
behavior at eGames' web site without disclosing this fact to
consumers.
Granholm said:
“eGames has committed itself to not only
obtaining consumers' consent before collecting their personal
information and informing consumers how it handles their
information but has also agreed to go one step further and revise
its software to address its customers' concerns. eGames is setting
a new standard in respecting and observing consumers' privacy
interests - one that other companies operating on the internet
should emulate."
Under the agreement, eGames will remove the undisclosed
third-party advertising software from all future versions of its
computer games. Conducent advertising software contained in demo
games that are downloaded from eGames' web site will be removed
within two weeks, while full versions of eGames' software packages
will be free of the advertising software by 31st March this
year.
To address the concerns of consumers who have already downloaded
games or purchased eGames products, eGames has developed a free
software patch to remove the Conducent software from consumers'
computers.
eGames has also prepared and posted a new, expanded privacy
policy on its web site designed to disclose all material facts
regarding the collection and use of consumers' personal
information. eGames' new privacy policy identifies how information
is collected and used by eGames and its service providers, explains
the use of cookies and how they are used at eGames' web site, and
gives consumers instructions for accessing and correcting
information collected by eGames.
Among other significant terms of the agreement, eGames will not
gather personally identifiable information unless consumers have
consented to the collection of the information and have had a
meaningful opportunity to review eGames' privacy policy. eGames'
current policy states that eGames does not share personally
identifiable information without the user's affirmative
consent.
The settlement will be filed in court which will mean that the
Attorney General may enforce its terms if necessary.
