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Sears Settles Spyware Row
In the US, retail giant Sears Holdings has agreed to settle a complaint alleging that it installed tracking software on consumers' PCs without adequate disclosures.
Accusations that the firm distributed comScore 'spyware' tracking all Internet usage were first made public last year.
The Federal Trade Commission (FTC) alleged that from April 2007 to January 2008, Sears distributed third party tracking software as part of a market research project. Pop-up ads were sent to 15% of site visitors, inviting them to submit their e-mail address in order to receive behavioural tracking software. As part of the deal, the respondents were offered $10 to track their online browsing.
However, while the invite did explain that the software would track online activity, the FTC claimed that the initial e-mail did not make it clear that the program would also collect information on non-Sears sites, such as online bank statements, drug prescription records and e-mails.
Sears did disclose exactly what it planned to monitor in a lengthy user license agreement, but the FTC argued that this was not clear as it was buried in the fine print.
'The complaint charges that Sears' failure to adequately disclose the scope of the tracking software's data collection was deceptive,' the FTC said in a statement.
Under the settlement, Sears is required to destroy the data collected and make future disclosures more prominent.
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