Web surfers aren’t just mad about online privacy violations. They’re getting even. Consumers are speaking out publicly against companies they say have gone too far in tracking their Web surfing patterns, creating public relations nightmares.
They’re also heading for the courts, seeking millions of dollars in damages. Before long, companies will need to pay more than lip service to privacy protection or they may end up being forced to pay up — period.
The latest alleged corporate breach involves Sears Holdings, parent of department stores Sears and Kmart. On Jan. 8, the Berkman Center for Internet and Society, a research program at Harvard Law School, released a report accusing Sears of violating the privacy of users of its online community site.
To join, customers download a program that tracks their online purchases and other activity. Sears failed to sufficiently explain what the software does, according to the study’s authors. “It is pretty clear that they were doing some things that were not adequately disclosed to the users,” says John Palfrey, executive director of the Berkman Center.
More Transparency Needed
The report follows a class-action lawsuit filed Jan. 4 in Cook County, Ill., that accuses Sears of exposing its customers to identity-theft risks by sharing individuals’ purchase histories to anyone who searched for a particular user’s name or address on the Sears ManageMyHome Web site. The suit, filed by New Jersey resident Christine Desantis and on behalf of other Sears customers, seeks $5 million in damages. Sears declined to comment, citing the lawsuit.
The report and lawsuit reflect growing unease over efforts by companies to make use of the mountains of data they collect on customers who use the Web — and the rising stakes for corporations thought to trample consumer rights. Companies are eager to harness information they collect on a person’s interests, purchases,…