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Amazon Cited By FTC For Deceptive Practices

target writes: "An article from salon reports that the FTC has ruled that amazon and its subsidiary alexa 'probably deceived customers' by passing on to the compaines personal information. Not that they're going to do anything but point it out, of course." Note that this is about different aspects of Amazon's privacy policy than reported in this story a few days ago, where the powers that be decided that removing 'opt-out' choices, among other things, did not deceive customers.

30 of 61 comments (clear)

  1. I wouldn't say they were "cited" by garcia · · Score: 3

    they weren't "cited". The FTC disagreed w/their practices, but isn't going to do anything at this time. Seems Amazon's partner in crime has changed its policy (states something about "it is sometimes tracked anonymously and not linked w/names"

    how is this different from any other marketing information gathering device (for sale databases, grocery store name here cards, etc)

    everyone is watching what their buyers are purchasing.. Most grocery stores don't tell you that they are going to do that when you sign up for their "savings cards", how is what Amazon doing any different?

    1. Re:I wouldn't say they were "cited" by Salieri · · Score: 5

      how is this different from any other marketing information gathering device (for sale databases, grocery store name here cards, etc) everyone is watching what their buyers are purchasing.. Most grocery stores don't tell you that they are going to do that when you sign up for their "savings cards", how is what Amazon doing any different?

      In grocery store discount cards, you are selling your privacy. You choose to let them track what you buy, when, in what quantities, with what other products, etc. in return for savings.

      The stores are required by law to say what they are going to do. It's in the fine print of the application -- just most people don't read the fine print, or understand what it means.

      Amazon, however collected information "secretly", without the consent of the customers and offering no such savings in return for such consent.

      --------------------------------

  2. Re:Semi-related by Sethb · · Score: 2

    I like to fill out all of the e-mail address boxes with "postmaster@domain.com" where the domain is the site I'm downloading from. I bet postmaster@real.com is getting really tired of the spam from his own company by now, as is postmaster@iomega.com, postmaster@apple.com, postmaster@novell.com, etc. etc. :)
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    When in danger or in doubt, run in circles, scream and shout. --Robert A. Heinlein
  3. Who DIDN'T see this coming? by Geraden · · Score: 2

    I've said for a year now that Amazon has been taking a loss on its retail divison to build up the most incredibly targeted marketing database in history. Customers of Amazon could see it in the extensive preferences & rating system that they have used throughout their site.

    Retail booksales has such a narrow margin these days that if Amazon were ever to turn a profit, they HAD to do something like this.

    Lessons learned:
    1) Information is King, Queen, AND Crown Prince.
    2) Don't exceed your comfort zone when it comes to giving away personal information just for a good price.
    3) The almighty buck trumps the hell out of Privacy Statements.

    Scott
  4. Privacy Policies are now laughable by RavenDarkholme · · Score: 5

    When I started getting spam (not from Amazon) to an email address I *only* use with Amazon, I couldn't believe it. Unfortunately, all it's done is make it so that I don't believe anyone's privacy policy anymore. After all, if Amazon can just all of a sudden decide to sell my info, so can anyone else. I pretty much use a different email address everywhere I sign up for anything now. That way, if they do the same thing, ~blip~ Right into Procmail it goes.

    It's just another chilling reminder that any kind of contract isn't worth much more than the paper (the screen) it's printed on if someone with a lot of money wants to break it and some little person like me doesn't have the resources to fight it.

    Thanks, Amazon, for adding to the restoral of my faith in humanity.

    1. Re:Privacy Policies are now laughable by fdiskne1 · · Score: 2

      But first you must read their Conditions of Use:

      DISPUTES

      Any dispute relating in any way to your visit to Amazon.com or to products you purchase through Amazon.com shall be submitted to confidential arbitration in Seattle, Washington, except that, to the extent you have in any manner violated or threatened to violate Amazon.com's intellectual property rights, Amazon.com may seek injunctive or other appropriate relief in any state or federal court in the state of Washington, and you consent to exclusive jurisdiction and venue in such courts. Arbitration under this agreement shall be conducted under the rules then prevailing of the American Arbitration Association. The arbitrator's award shall be binding and may be entered as a judgment in any court of competent jurisdiction. To the fullest extent permitted by applicable law, no arbitration under this Agreement shall be joined to an arbitration involving any other party subject to this Agreement, whether through class arbitration proceedings or otherwise.

      In other words, if you feel that Amazon wronged you, you agree to their form of arbitration. You can't sue them. If they feel you've wronged them, they can sue you. In addition, no class-action lawsuits allowed.
      --
      But why is the rum gone?
    2. Re:Privacy Policies are now laughable by neorf · · Score: 2

      there's no proof amazon are passing on your address. i have an email address that i never use for anything, i don't even get my friends to email me on it. yet i still get spam sent to it. i don't know how they know about the address, but as i have never published it anywhere on the internet i assume they have some sort of detection system to search for addresses. all i'm saying is you shouldn't grill amazon when there's no proof against them.


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      Never send a man where you can send a bullet.
    3. Re:Privacy Policies are now laughable by hillct · · Score: 5

      I completely agree. Amazon has disappointed me far too frequently, but far more disappointing is the lack or resolve on the part of the FTC. This is the orgamization that's supposed to protect the public from behavior such as that of Alexa and Amazon. If they can't scrape together the fortitude to go enforce the law, what are we, joe public supposed to do. I guess Class Action lawsuits are the answer, but I have a moral objection to putting money into the pockets when it should be coming back to us, the users.

      --CTH

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      --Got Lists? | Top 95 Star Wars Line
  5. Re:Get Over It? Maybe, Maybe Not by Malcontent · · Score: 2

    " Oh right, if people know you have a medical condition or that you are gay or that you have used drugs, then they can discriminate against you."

    Yes that's the exact point. The world is still full of hateful people who would discriminate against you if you were gay (god forbid you have aids). Maybe they can deny you housing, or a job. Maybe it's even worse and they decide to teach you a lesson for moving into their neighborhood. Don't kid yourself this is still a racist country.

    --

    War is necrophilia.

  6. Correction of Inconsistencies by Scouras · · Score: 2
    It appears that Amazon eventually noticed the inconsistency between the product the the privacy policy. Aparantly, it was (unsurprisingly) more profitable and easier to just ammend the privacy policy.

    From Richard Smith, with the University of Denver's Privacy Foundation: "I think they needed to come down harder in this case," Smith said. "I found (Amazon's response) kind of strange. They should have just changed their software to work how the privacy policy said it worked."

    The FTC doesn't have a lot of room though anyway. The software in question (the comparison shopping service zBubbles) is now unused, and the privacy policy has been "corrected".

  7. How they found it by wiredog · · Score: 2
    create list of all valid addresses from a to max number of characters in address.

    for each address in list, send spam to address@domain

    Or, they may have purchased the list of addresses from the ISP.

  8. Comment removed by account_deleted · · Score: 2

    Comment removed based on user account deletion

  9. exhausted ramblings by joq · · Score: 5


    Hopefully common sense will one day prevail when it comes to people purchasing things online, and when using programs created by those companies you've made the purchases from.

    When one goes to buy things online, your often going to see something like a radio button asking whether you want something in the future, or would like to subscribe to, or other option, and this is no different then when you go into department stores, and the cashier asks if you'd like to sign up for another credit card, or would like to receive X_OTHER information via mail, etc.

    Marketing companies, and marketing departments try to use the data for obvious reasons, to sell you more products, but at times they also use that data to try to predict trends in what to sell next, or what to add. However the differences when you buy online, and in person is, in person you can look someone dead in the eye and say no, but on the net you really have little control.

    Spyware programs which claim never to use people information for the company's personal gain are almost always a sham, and I feel this way after working with a company who developed a product they claimed wasn't spyware, but yet tracked when the user logged in with the program, what the person purchsed, etc., when I asked my bosses about it, it was amusing to see the obscurity they placed behind tracking information.

    Lets be realistic here, using a program by a company which sells goods, is going to by some means monitor something, and you should be aware that no matter what is said, that information can be tracked to you no matter what the company says, either by a username, trends in shopping, or even IP addresses, and that's the bottom line any way you slice it. How else do you expect them to make money?

    On a side note, after sleeping 3 hours within the past 48, I wonder if I make any sense!@

  10. Re:Microsoft != Amazon by wumingzi · · Score: 4

    There is a question of "the ability to do something" and "the will to do something"

    I don't want to sound pro-Microsoft (I'm not) but the reality is that as a near monopolist in several areas of software, the second largest employer in Washington State, and (need I mention) a generous campaign contributor, the Fed will walk on eggs when coming up with any remedies to control Our Friends In Redmond.

    Once you get past the breathless hype of the New Economy, Amazon is expendable. Jeff Bezos could be swatted out of existence, and the loss of every single job at Amazon would result in a small change in the unemplyment rate of Greater Seattle, and a zero change in any meaningful national economic statistics related to employment, GDP, the value of the NASDAQ, or any other indicator you care to fish up.

    Who knows, without an Amazon.com to surf to, office productivity might even rise a few ticks.

    Attachmate (a privately-held middish-to-big Seattle software firm you've probably never heard of) puts more money into the economy than Amazon.

    The FTCs lack of action does not indicate the goverment does not have the means. They certainly do. They just don't have the desire.

    cynically yrs,

    j.

  11. Get Over It? Maybe, Maybe Not by webword · · Score: 2

    Why do people feel that they have lost their privacy? It has been gone for a long time. And, don't forget, giving up privacy can be (gasp!) a good thing.

    Scenario: You are in an accident. Medic checks your medical history. Finds out that you will die if given some injection of some chemical. Medic gives you another injection instead. You give up your privacy. You live.

    The idea is that we need to be willing to give up our privacy to right people at the right time. The government knows a ton about you. The government is run by people. Therefore, other people still know a lot about you, even if you hide shit from companies.

    I have an interesting aside. I have a friend who talks openly about all the porn he views each day. He is married and has kids. This shocks me. However, he is now home free. No person can ever really blackmail him about the pornography his views every day. He tells the world what he does and the world can't kick his ass. He has not a drip of fear... This is an interesting philosophy. It is a kick ass pre-emptive strike. I think it sort of relates here.

    What are we all hiding? Who gives a shit? Oh right, if people know you have a medical condition or that you are gay or that you have used drugs, then they can discriminate against you. What a tangled web we weave.

  12. In Association With by Alpha+State · · Score: 2

    Dammit, Amazon is the best candidate for helping me earn money from my pet website. I don't really want to ask people for donations - seems like asking for something for nothing, and it's still a pain getting small transactions.

    But it's obvious Amazon is going to behave less and less ethically before it finally starts making a profit or goes down the gurgler. Even worse, it's pointless crap like marketing data which is not going to save them, just piss lots pf people off. It's getting to the point where I'm ashamed to have their logo on my site - guess it'll be back to the old drawing board.

  13. CAn the government do anything against businesses? by hooded1 · · Score: 2

    If the microsoft Anti trust lawsuit has showed us anything its that the government has very little power when it comes to the moderation of large companies. Although i am not the most informed person i cannot remember an instance in which the government was able to punish a wealthy company for 'crimes' they may have commited. The only successful attacks on companies only seem to come from individual lawsuits. Then again often the money transfered in these lawsuits is infinitesimal compared to the overall value of the company. What we really need is someone in power who is willing to enforce American business laws. It sure as hell isn't going to be Bush. He likes to believe he is a businessman.

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    A rabbit in the hand is worth 4 in the cage
  14. Obligatory Monty Python quote by TomatoMan · · Score: 3

    FTC, with lances and shields: "Right. Now don't do it again!"

    Sorry. Gut response. You know how it goes.

    TomatoMan

    --
    -- http://frobnosticate.com
  15. Semi-related by Legion303 · · Score: 2
    In addition to making sure you click NO on all those "do you want worthless shit email from us?" radio buttons, you should also deliberately skew marketing surveys that are forced down your throat as part of "free" services. I routinely mark "$100,000+" for income, "Social Worker" as career (let them puzzle over that one), "55+" for age (or alternately, "18"), etc. The more of us there are who do this, the less useful those marketing databases get.

    -Legion

  16. Alexa just *lost* a class-action suit on this by Sara+Chan · · Score: 2
    There are several comments about a class-action suit. There was a class-action suit brought against Alexa for violating privacy. Alexa lost. The decision was on 19 April 2001 by a U.S. District Court. You can read about it at http://www.alexa.com/settlement/index.html.

    There has been preliminary approval of a settlement. The court is scheduled to hold a "fairness hearing" on 27 July 2001. It looks like Alexa will lose a couple million dollars. Is this enough to deter others from trying such tricks?

  17. It's different because.... by geckoFeet · · Score: 3
    everyone is watching what their buyers are purchasing.. Most grocery stores don't tell you that they are going to do that when you sign up for their "savings cards", how is what Amazon doing any different?

    It's different because Amazon was violating their own privacy policy. They stated clearly that they would aggregate the information and not use it to identify individual customers. They lied. They were reprimanded by the FTC for being deceptive, not for being intrusive.

  18. License your info by Seqram · · Score: 2

    You have to give your private info to these companies, but you want to control how they use it. Does anyone else find this familiar? Isn't it just what software licenses and EULAs do? Why not take a page from their book and license your private information.

    When you place an order, specify that you are providing this information in accordance with your Information License (provide a URL) and accepting your offer constitutes acceptance of the license. Then you control what the policy is. If they have a problem accepting it, they can email you and talk it over or whatever. It might be worth trying.

    I know that licenses like this may not stand up in court, but that doesn't stop software companies from using them or people from honoring them. If anything, a customer's license is likely to have more standing, because the customer's hands are more tied. It's probably worth trying.

    Anyone want to help this project out? Help work out a standard license to use for this? Drop me a line, this could be cool.

  19. Deceiving Customers by krystal_blade · · Score: 5
    "where the powers that be decided that removing 'opt-out' choices, among other things, did not deceive customers"

    Kinda like us Slashdot posters deceiving other readers into thinking we actually READ the articles?

    Heh.

    krystal_blade

    --
    It will be easy to motivate our fellow man; there is hardly anything people treasure more than not being annihilated.
  20. A Question of Protocol... by Papa+Legba · · Score: 3

    Can I consider this another flagrant violation of my rights by a large corporation with the help of the government when the large corporation in question has never made a profit and therefore really cannot be considered a large corporation?

    Please answer, as I am a bit confused.... And I am vastly concerned with categorizing the many people that screw me over through the day so I really need to figure out which category I should check this off in before I go to bed.

    --
    Papa Legba come and open the gate
  21. Could This Be Used To Competitive Advantage by OCatenac · · Score: 2

    I wonder why it is that no bright entrepeneur has come up with the concept of using guaranteed privacy as a way to lure customers to their website. I mean given the choice between Amazon.com (which has already demonstrated a tendency to play fast and loose with the truth when it comes to users' privacy) and some other website which went out of its way to protect my privacy, I'd choose the latter. I know it would take a while for people to be convinced that "PrivacyUberAlles.Com" is really not going to violate people's privacy. However even before people are convinced a smart marketer should be able to play up an ironclad privacy policy to the advantage of the website. I'd even be willing to pay a little premium (as I suspect many people would) to have a better guarantee of privacy.

    Onorio Catenacci


    --
    "And that's the world in a nutshell -- an appropriate receptacle."

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    --
    "And that's the world in a nutshell -- an appropriate receptacle."
    -- Stan Dunn

  22. changing the agreement... by thanjee · · Score: 3

    They say they aren't doing anything wrong because the agreement has been changed... ...sounds like my girlfriends Monopoly rules. She has an in-house rule that allows her to change rules depending on her circumstances in the game. The one part she won't change though is the rule that stops anyone else from changing any rules.

    --
    Saying your OS is the best because more people use it is like saying MacDonalds make the best food
  23. Does Trust matter to corps any more? by BLAG-blast · · Score: 3

    Of course not!

    Amazon will continue to dirty practices as long as they can make more money that way. But in the mean time they ruin it for others. I will opt-out of every mailing list because companies will not respect your inbox. They don't care if they bug you with too much email for a "low traffic email list". Now they will try to stop you unsubscribing ("it may take up to two weeks to process your request" bullshit).

    Let's see some laws to protect people. How about a minium "one working day" unsubscribe response time? How about verifying that you want to be on the list in the first place?

    The bottom line is that companies don't care about winning your trust (or anything else that doesn't directly involve parting you and your money).

    Maybe the dot com crash will spur companies to return to a more people based mind set.

    HA! I can dream.... thank you for reading my whinning.
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    M0571y H@rml355.
  24. amazon and Star Wars by kurt555gs · · Score: 2

    There was a line in one of the Star Wars movies where Darth Vader told Landow Kalrizian (guess at spelling) "I am altering the deal, pray that i do not alter it any further" Just like dealing with big biz

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    * Carthago Delenda Est *
  25. Get over it? by CrackElf · · Score: 2

    Tell that the thousands of jewish people that died in concentration camps because the government knew who did what where. (just one example of a government using private information to the ... shall we say 'disadvantage'? ... of the people)

    Or how about the Japanese internment camps in the United States. Teachers that get fired because they are gay. People that get fired because they are not Christian.

    When people stop discriminating, and enforcing their moral code on others, then we can start talking about a utopia where people can just be themselves, and exist in society. Till then, any idea that people dont need to hide anything is just a pipe dream.

    The question is who do you trust with your information. I do not trust any government with that information. Nor do I trust corporations, although, since they are usually just looking to scam me, it is relatively harmless (now).

    Yes, there are times and places where information is useful. (if it were not, it would not be information, but random data) But in that same scenario, that person who is healing you does not need to know your religion, your sexual preference, your surfing habits, the clubs you frequent, or your political party. Neither (for instance) does the persons boss. The information is not necessary, and if used, will most likely not be used to the benefit of the subject of the information.

    Information has, in the past, been used for malevolent or selfish purposes. In the present it is being used for malevolent or selfish purposes. I do not believe that this will change.
    -CrackElf

    --
    "Blake is an idealist, Jenna. He cannot afford to think." - Kerr Avon, Star One, Blakes 7
  26. trust no one by ramb0z0 · · Score: 4

    If you give anything of value to a coorperation,no matter what they say, you are guaranteed* to be screwed in the fine print. If there is an avenue to make money, it will be exploited.

    from amazon's privacy terms :
    Information about our customers is an important part of our business, and we are not in the business of selling it to others. ...
    As we continue to develop our business, we might sell or buy stores or assets. In such transactions, customer information generally is one of the transferred business assets ...
    ?WTF?



    *this is not a guarantee