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.
