(idm) Geocities & the US FTC

From David J. Gebhart
Sent Mon, Aug 17th 1998, 16:55

since many of you use Geocities to host yer sites...

others, sorry for the bandwaste.

DGeb


------------INFORMATIONWEEK DAILY--------------
The E-Mail News Service For IT Decision Makers

___FTC Charges GeoCities With Internet Privacy Violations___
The Federal Trade Commission yesterday embarked on its first 
Internet privacy case, charging GeoCities with improperly 
collecting personal information from customers. GeoCities 
is a popular Internet site that hosts personal home pages 
and provides E-mail services. The FTC claims the Web site 
misrepresented the reason given to subscribers for 
collecting personal information from adults and children. 

GeoCities denied the charges but said in order to settle the 
complaint quickly, it agreed to post a prominent privacy 
notice on its Web site, outlining for consumers the specific 
information that it collects, the purpose for doing so, and 
how consumers can access and remove the information. "Our 
visitors are very important to us and are the primary reason 
GeoCities has developed and implemented privacy safeguards," 
said Thomas Evans, GeoCities president and CEO, in a 
statement.

"GeoCities misled its customers 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." 

GeoCities requires potential subscribers to complete an 
online application that includes mandatory and optional 
information. The optional information is not supposed to be 
released without the members' agreement. The FTC alleges 
that GeoCities released the optional information to third 
parties without subscriber permission. This information 
includes education level, income, marital status, 
occupation, and personal interests.  --Mary E. Thyfault


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