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Press Release Monday, July 10, 2000 |
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WASHINGTON, D.C. -- The Federal Trade Commission today filed a
complaint against Toysmart.com, charging that the web toy seller sold
or shared with third parties information about its customers, after
promising not to do so.
The suit, brought in United States District Court for the District
of Massachusetts, seeks to prevent the sale of confidential, personal
customer information collected on the now-defunct company's web
site.
Consumers Union, the publisher of Consumer Reports
magazine, is a strong advocate for consumers' privacy rights.
Frank Torres, legislative counsel for Consumers Union, made the
following statement today following the FTC's announcement:
"Many online companies collect an enormous amount of information
about their customers. This incident shows just how valuable
consumers' private information is in the eyes of these companies.
"As e-commerce evolves, some companies will succeed and others
will fail. A web site may promise it will never, ever give out your
personal information. But if the company goes out of business, it
may decide its promise no longer holds true.
"This dilemma shows why Congress needs to give consumers more
control over the information they give to web sites. A web site
should only be able to sell and share customer information if the
consumer has some choice in the matter.
"The FTC, by its own admission, is limited in how far it can go in
policing the way that online companies sell and share people's
private data. Congress should grant the FTC the authority it says it
needs to protect people's online privacy. We shouldn't have to wait
until a web site goes under and puts its customers' privacy at
risk."
Consumers Union, publisher of Consumer Reports magazine, is an independent nonprofit testing, educational and information organization serving only the consumers. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition and other consumer concerns. Since 1936, our mission has been to test products, inform the public and protect consumers.
