Email marketer settles 'largest breach of privacy in internet history'
14 Mar 2006, 2:09 pm
An email marketing firm has agreed to pay $1.1 million to settle an investigation into whether it had improperly used consumer data purchased from firms that had promised their clients that they would not pass on their information.
According to New York Attorney General Eliot Spitzer, the investigation uncovered what "may have been the largest breach of privacy in internet history." It covered the personal data of more than six million US consumers.
The case concerned Datran Media, an email marketing firm accused by the New York Attorney General’s Office of improperly using information purchased from companies that compile and sell information on consumers.
The largest such company, Gratis Internet, had assured consumers on several websites it owned and operated that it would "never lend, sell or give out for any reason" the information provided by users.
The Attorney General’s investigation revealed that Datran knew of Gratis’ promise to consumers when it purchased the consumer lists. But after obtaining these lists, Datran sent millions of unsolicited emails to the listed consumers.
Datran has now agreed to pay $1.1 million and to destroy the information obtained from Gratis and other list sellers. It will also appoint a Chief Privacy Officer and avoid purchasing any further lists without independently confirming that the purchase is permissible under relevant seller privacy policies.
"With this case, we hope to set a new standard for internet marketers and consumer research companies," said Spitzer. "Personal information secured through a promise of confidentiality must always remain confidential."
The investigation into Gratis and the other list sellers is continuing.
