"GeoCities misled its customers, both children and adults, by not telling the truth about how it was using their personal information" said Jodie Bernstein, Director of the FTC’s Bureau of Consumer Protection. "This case is a message to all Internet marketers that statements about their information collection practices must be accurate and complete."
According to the FTC, GeoCities created a database that included the e-mail and postal addresses, member interest areas, and demographics (such as income, education, gender, marital status and occupation) of its members. It gathered this information from its online application for a free website. The FTC charged that despite GeoCities’ claims that the information would not be released to anyone without a member’s permission, the database was used to create targeted marketing lists for third-party advertisers.
Under the settlement, GeoCities will prominently post a "Privacy Notice" telling consumers what information is being collected about them, why, who’s getting it, and how a consumer can delete the information. GeoCities will also have to obtain parental consent before collecting information from children 12 and under.
In announcing this settlement, Director Bernstein issued a warning to other sites that collect private information from consumers. "The FTC will continue to monitor these Internet sites and bring enforcement actions when appropriate."
For more information about the FTC case, check out their press release.
If you have questions or concerns about online privacy, send them to us via our online question and suggestion form.
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