Business Services Industry

The FTC cracks down.(Law of the Line)(Federal Trade Commission)

Hawaii Business, December, 2004 by Godbey, Bob

The Federal Trade Commission (FTC) is taking aggressive action to police the Internet. This summer, for example, the company marketing "Hooked on Phonics" agreed to settle FTC charges that it violated federal law when it rented consumers' personal information to third-party marketers. The company had promised it would not do this in its privacy policy. According to the FTC, in April 2003, despite its previous promises, the company changed its privacy policy without notifying consumers or getting their consent and started renting personal information provided by consumers--including information about their children--to third-party marketers to send mailings and make telemarketing calls. (The moral of this enforcement action for Internet merchants is simple: be careful...

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