Spitzer Sues Gratis Internet for Massive Privacy Breach
This morning New York Attorney General Eliot Spitzer sued web site operator Gratis Internet for selling the confidential user records of between one and seven million of its customers to three independent email marketers. The Washington, DC-based Gratis Internet, which enticed users to enter their information with giveaway sites like Freeipods.com, Freecondoms.com, and FreeDVDs.com, breached numerous explicit statements of confidentiality made on these sites, such as: “We will never lend, sell or give out for any reason your email address or personal information.”
The Attorney General’s suit cites specific testimonies and data sharing contracts, as well as other evidence provided by Internet marketers that worked with Gratis Internet. Filed in the New York State Supreme Court, the suit seeks penalties and injunctive relief under New York’s consumer fraud statutes.
Eliot Spitzer’s intervention in the company’s fraudulent practices is being hailed by industry advocates as a huge step forward in safeguarding consumer privacy online. “Unless checked now, companies that collect and sell information on consumers will continue to find ways to erode the basic standards that protect privacy in the Internet age,” Spitzer said in a press statement.
Today’s action follows a settlement announced March 13th between the NY AG and Datran Media, one of the email marketers who obtained user records from Gratis Internet.
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