FTC Warns Site Not To Sell Personal Data 120
itwbennett writes "The US Federal Trade Commission has warned two people associated with a now-defunct magazine and Web site for gay teens and young men that they would violate the privacy promises the publication made to subscribers by selling their personal information during a bankruptcy proceeding. The FTC, in a letter sent earlier this month, also suggested that the owners of XY Magazine and XY.com would be violating the privacy standards the company had in place before shutting down if they used the subscribers' personal information in a relaunch of the magazine or website. The personal information is listed as part of the debtor's estate in a New Jersey bankruptcy proceeding for Peter Ian Cummings, editor and founder of the magazine. Before the magazine's demise, many of the subscribers lived at home with parents."
Re:Bad Comparison (Score:4, Informative)
It's pretty typical for any and all contractual obligations over an asset to be tossed in a bankruptcy court. E.g. say you had a patent which you'd sold thousands of covenants not to sue for, in bankruptcy ownership of the patent may be transferred without the obligation not to sue.
The FTC's recommendation is unusual and surprising and I'd expect it to be ignored or fail if challenged in court.
Re:Mr Cummings (Score:4, Informative)
. The original FTC letter [ftc.gov] also makes for an interesting read. They seem to rely both upon the original privacy statements and a broader sense of "fair play" in making their judgement.
Promises (Score:3, Informative)
My understanding was that the US doesn't have anything like the UK Data Protection Act [wikipedia.org] so the company wouldn't actually be doing anything illegal.
Are these promises worth anything? Would it even constitute a breach of contract, i.e. be grounds for a civil action?
Re:Promises (Score:4, Informative)
The FTC has actually filed civil lawsuits against multiple companies that the agency thought didn't live up to their privacy promises. The FTC sees the act of breaking privacy promises as a deceptive trade practice that's outlawed in the FTC Act.
Is it a "promise" or a "contract?" (Score:2, Informative)
There is nothing preventing a company from changing its privacy policy after it has obtained your private information. Hell, there's no law requiring that they even adhere to their own privacy policy.
Nothing to see here. Move along.
Re:Where do the subscribers live these days then? (Score:3, Informative)
"Before the magazine's demise, many of the subscribers lived at home with parents."
And this changed how exactly after the bankrupcy of the magazine?
While the subscriber was regularly getting the magazine in its black shrink wrapped form, they knew to look out for it, about what time it would arrive, etc. That ended when the magazine folded, and the subscriber is no longer expecting it to arrive. Or the subscriber has moved on, to college and/or their own place. Suddenly, without expectation, a new mailing arrives. Even if it has the black shrink wrap, the original subscriber is now not there, or even if there, might not be acting in a timely manner, to prevent the parental units from wondering what's in this strange black envelope and physically tearing it open. Now the damage is done where it otherwise would not have had either the magazine continued operation (the subscriber could quit, not renew, or change address, or just keep on expecting it) or if the magazine abandons its list in a restart under new ownership.
Maybe a bankrupcy of slashdot would be a good thing for the readers too ...
OMG! No more kitty porn???
FormerMember (Score:1, Informative)
First off, I used to be a member of that website, until it rolled downhill and everyone started using other social networks.
The magazines were non pornographic and aimed at gay youth. They didn't feature nudity and were sold at stores like chapters.
It had TONS of subscribers and at one point I would have believed it to be the largest gay social network. Not everyone would have their financial information or true information on the site, although it did end up possessing a ton of information about users.
Re:Is it a "promise" or a "contract?" (Score:2, Informative)
Nothing except the threat of a lawsuit filed by the FTC. The agency has brought several similar cases.
Re:Censorship Software would help protect Children (Score:3, Informative)
[Remember, your Nanny loves you and only wants what's best for YOU].
The last cyber-nanny who wanted What's Best For Me was working for SHODAN, and tried to rip me apart with lasers for trying to hurt the egg pods of The Many. Hilarity ensued.
Re:It Would Be A Nice Precedent (Score:1, Informative)
I remember the case of a hospital that stored medical records in a warehouse. They stopped paying rent and the landlord sold the file cabinets including contents to help recover his losses. The cabinets, folders and paper are physical property and property laws govern them. The information on the papers had no legal standing at all.
Even HIPPA laws do not apply to parties who are not heath care providers or their agents but who have possesion of patient data nevertheless.
It's the hospital that would be busted for the HIPAA violation. The hospital is obligated to prevent that from happening.
Re:Bad Comparison (Score:4, Informative)
"The moral of the story is DON'T GIVE YOUR PERSONAL INFORMATION TO OTHERS."
It's rather difficult to have things delivered to you without giving them your name and address. They tend to want credit card info as well.