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FTC Warns Site Not To Sell Personal Data

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."

120 comments

  1. Mr Cummings by Anonymous Coward · · Score: 4, Funny

    Is that a stage name ;-)?

    1. Re:Mr Cummings by cappp · · Score: 3, Informative
      To put the ruling into scale:

      The magazine, published from 1996 to 2007, collected the names and street addresses of about 100,000 subscribers and photographs and articles submitted by about 3,000 former readers, the FTC letter says. In addition, XY.com, which closed in 2009, collected the names, street addresses, e-mail addresses, personal photos and online personal profiles of between 500,000 and 1 million users, the letter said.

      . The original FTC letter 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.

      In this situation, however, the continued use of the XY PI, even by the existing owner, would not necessarily be consistent with the original purpose for which the data was provided. Indeed, due to the nature of the information, the passage of time, and the closure of the magazine and website in 2007 and 2009, respectively, the continued use of the data may pose privacy risks not reasonably contemplated by subscribers when they provided the data, and not consistent with their course of dealing with the company.

    2. Re:Mr Cummings by Anonymous Coward · · Score: 0

      Not just "Mr. Cummings," but Peter I. Cummings.

      One could theorize that's a stage name, but then Hugh Jackman isn't a porn actor as far as we know.

    3. Re:Mr Cummings by Hognoxious · · Score: 2, Interesting

      Oh btw, armed and aware gay people tend not to be bashed.

      http://pinkpistols.org/

      Does their logo look like a vulva, or is it just me?

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    4. Re:Mr Cummings by mcgrew · · Score: 1

      Even funnier, his name is Peter Cummings!

    5. Re:Mr Cummings by Anonymous Coward · · Score: 0

      Vagina, Magina, they all look the same as you pull something out of them :D

    6. Re:Mr Cummings by Anonymous Coward · · Score: 0

      Dude, it's not working.

    7. Re:Mr Cummings by Anonymous Coward · · Score: 0

      >> or is it just me?

      How should I know if you look like a vulva?

    8. Re:Mr Cummings by Runaway1956 · · Score: 1, Flamebait

      Kinda funny, really. I'm opposed to most gay rights bullshit - especially marriage. But - I agree with the FTC. Sensitive information of this nature should NOT be divulged, period. No qualifiers, no quantifiers, nothing. Just don't do it.

      As for the pink pistols - it's just to gay to consider. Peter puffers with pistols, ROFLMAO Oh well - seriously - if they are American citizens, OF COURSE they have the right to keep and bear arms, and to defend themselves from assholes. But, I'll be laughing all day. Pistol packin' peter puffers. Oh god. I need to share that page with everyone I know.

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    9. Re:Mr Cummings by Anonymous Coward · · Score: 0

      Kinda funny, really. I'm opposed to most gay rights bullshit

      Kinda ironic really cause you sound like a total dick and seem to be in love with yourself...

    10. Re:Mr Cummings by Anonymous Coward · · Score: 0

      Sound effect: Feeble drumroll, light tap on the cymbal.

    11. Re:Mr Cummings by mrmeval · · Score: 1

      Well it does indicate that someone or something is about to get penetrated with a round cylindrical object. It's a shooting stance. ;)

      --
      I'd go on a Vegan diet but the delivery time from Vega is too long. --brownkitty
    12. Re:Mr Cummings by mrmeval · · Score: 1

      Ok I assume that moderation is by either an anti-gun nut or a queer basher. Bite me.

      --
      I'd go on a Vegan diet but the delivery time from Vega is too long. --brownkitty
  2. Yet the US gov got Birthday Club data by AHuxley · · Score: 2, Interesting

    Funny how they cannot sell data, but the US Selective Service "ie draft" seemed to like buying and using data when they wanted it :)
    http://en.wikipedia.org/wiki/Farrell's_Ice_Cream_Parlour
    The data an American ice cream parlor chain was used to warn young men to register for the draft before their 18th birthday in the early 1980's.
    It was all a big Google (mistake) when exposed.

    --
    Domestic spying is now "Benign Information Gathering"
    1. Re:Yet the US gov got Birthday Club data by Anonymous Coward · · Score: 5, Insightful

      It was all a big Google (mistake) when exposed.

      Bah. Stop trying to invent a new /. meme. It's not even funny.

    2. Re:Yet the US gov got Birthday Club data by AHuxley · · Score: 1

      Genericide (trademark as a noun) for the web 2.0 generation :)
      http://google-au.blogspot.com/2010/07/were-sorry.html is also fun reading about doing something interesting until exposed.

      --
      Domestic spying is now "Benign Information Gathering"
    3. Re:Yet the US gov got Birthday Club data by pla · · Score: 2, Funny

      It was all a big Google (mistake) when exposed.

      Uh, Mr. Balmer? You misspelled "Bing".

    4. Re:Yet the US gov got Birthday Club data by Anonymous Coward · · Score: 0

      Let me know when you're able to tell the difference between US Selective Service and a magazine, and then we can have a grown-up talk about this.

    5. Re:Yet the US gov got Birthday Club data by Anonymous Coward · · Score: 1, Interesting

      During the early to mid 1980s the Selective Service grabbed data from all over the place. In particular, for me, they grabbed information from the high school honor roll that was published. Unfortunately, the school made a typo on my information and had mine entered as middle name, last name, first name (my real names, but in that order). "I" got several notes from Selective Service indicating that "I" (by the incorrect name) was a draft dodger. It took awhile to get that sorted out and make them understand that there was no such person. By then, that name was getting military recruiter calls and even began getting jury duty notices. I actually attended jury duty by that name once. Finally got it all cleared up.

    6. Re:Yet the US gov got Birthday Club data by Eryq · · Score: 1

      It was all a big Google (mistake) when exposed

      I see what you did there.

      Wow, I've never heard of a Bing (stupid) fanboy before. How much does Bing (stupid) pay for Google-bombing these days? Clearly, Bing (stupid) is getting desperate...

      --
      I'm a bloodsucking fiend! Look at my outfit!
    7. Re:Yet the US gov got Birthday Club data by Anonymous Coward · · Score: 2, Funny

      I remember that. My friend and I made up a fictitious friend so we could get an extra birthday sundae each year. Boy were we shocked when we got a Selective Service letter for our "friend" when he "turned 18."

      I think that was a couple of years before I tried to use a $2 bill at Taco Bell.

    8. Re:Yet the US gov got Birthday Club data by AHuxley · · Score: 1

      Eryq, just trying to advance linguistics and have a new definition added to Oxford English Dictionary.

      --
      Domestic spying is now "Benign Information Gathering"
    9. Re:Yet the US gov got Birthday Club data by Abstrackt · · Score: 1

      Besides, Slashdot has way too many memes. It's a full-time job being welcomed by a beowulf cluster of Soviet Russian overlords who put things into things.

      --
      They say a little knowledge is a dangerous thing, but it's not one half so bad as a lot of ignorance. - Terry Pratchett
  3. Censorship Software would help protect Children by Anonymous Coward · · Score: 4, Insightful

    Most teenagers shouldn't have anything to worry about because responsible parents will have programs like Cyber Patrol and CYBERsitter installed to prevent their children and teenagers from accessing these sexually oriented sites. It's funny because under the Australian Internet filter this type of situation wouldn't even be an issue.

    [I'll spell this out early on here. I am not a Troll, just offering some political sarcasm, thank you very much. Remember, your Nanny loves you and only wants what's best for YOU].

    1. Re:Censorship Software would help protect Children by Anonymous Coward · · Score: 0

      You made me lol. good job.

      On a serious note, you know the world is really sad when people have to warn others not to sell personal data. it's like when the French governement promised that, because of this crisis, personal needs of ministers will be paid with their own money...

      (On a side note: lol Cummings)

    2. Re:Censorship Software would help protect Children by Drakkenmensch · · Score: 2, 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.

  4. I'm from future by Anonymous Coward · · Score: 0

    And this same news was posted expect for the fact that the magazine was substituted with website. "Before the website's demise, many of the subscribers lived at home with parents." -Anonymouse

    1. Re:I'm from future by pla · · Score: 4, Insightful

      And this same news was posted expect for the fact that the magazine was substituted with website. "Before the website's demise, many of the subscribers lived at home with parents."

      Self-debasing humor aside, you have rather a significant difference between a site like Slashdot selling out, and a magazine for gay teens.

      Most notably, paying for and receiving a physical magazine means the company has your name, CC info, and physical address; Slashdot has a dynamic IP address, a largely anonymous handle, a throwaway contact email address that likely filled with spam and died at least five years ago, and knows my default comment threshold.

      Not to mention, society doesn't stigmatize geekdom (these days) quite the same way it does homosexuality. Although I find the Slashdot crowd far more tolerant of such issues than the general public, our "perverse love" of technology rarely gets us lynched.

    2. Re:I'm from future by mcgrew · · Score: 1

      Not to mention, society doesn't stigmatize geekdom (these days) quite the same way it does homosexuality.

      I'm an old nerd, and even though (as I said quite a while ago in a BSFW journal) "About the time crack cocaine was being invented, being a nerd was starting to become somewhat acceptable. Apparently the crackheads took over our role as social pariahs."

      But even back when being a nerd was unacceptable, being homosexual was worse. Few gays were out of the closet, and if I'd been gay I'd have stayed in the closet too. These days, probably not. Odd, some things that were intolerable back then (homosexuality, nerdiness) are tolerated or even cheered (seems we're cool these days), other things, like smoking cigarettes, that were the norm are now not tolerated at all.

  5. Bad Comparison by dreamchaser · · Score: 4, Interesting

    Even the submission says it's because the company in question had privacy policies in place prior to going bankrupt. They would be violatinig said policies if they give away or sell the data. Listing it as 'assets' in bankrupcy court when they weren't supposed to sell it in the first place was a mistake by them.

    The Selective Service has no such polcies.

    1. Re:Bad Comparison by Anonymous Coward · · 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.

    2. Re:Bad Comparison by MadKeithV · · Score: 5, Insightful

      The FTC's recommendation is unusual and surprising and I'd expect it to be ignored or fail if challenged in court.

      It's going to be a pretty interesting storm if this fails if challenged in court, because it creates a semi-legal avenue for personal information harvesting, bypassing just about all privacy laws (barring perhaps things like HIPAA).
      In slashdot terms:

      1. 1. Set up facebook-like site with really good privacy rules.
      2. 2. Let site grow with lots of safe personal details
      3. 3. Go bankrupt.
      4. 4. Sell personal information legally for profit.
    3. Re:Bad Comparison by countertrolling · · Score: 1

      So we can expect a Microsoft bankruptcy at any moment then?

      --
      For justice, we must go to Don Corleone
    4. Re:Bad Comparison by Anonymous Coward · · Score: 0

      Since when Microsoft have "really good privacy rules"?

    5. Re:Bad Comparison by rollingcalf · · Score: 5, Insightful

      "It's pretty typical for any and all contractual obligations over an asset to be tossed in a bankruptcy court."

      However, it's not so simple when an asset held by the bankrupt company wasn't really theirs to sell in the first place. Suppose they had a fleet of cars which were leased. If they go bankrupt during the lease, they have to give the cars back, and cannot sell them.

      In a sense, the personal information was leased to company; it was never theirs to sell and shouldn't become theirs to sell just because of bankruptcy.

      --
      ---------
      There is inferior bacteria on the interior of your posterior.
    6. Re:Bad Comparison by hedwards · · Score: 1

      Indeed which makes it so rotten that they can require men to sign up for it. Especially since the recruiters don't seem to have any meaningful sense of integrity. I'm still getting harassed after a decade of not wanting into the Navy for reasons related to their renowned bigotry. Since I didn't give them my information, I should never have been contacted, let alone repeatedly called. The post cards these days are pretty trivial comparatively speaking.

      Lists of this sort are a very serious responsibility and sharing them without the expressed written consent of the person that owns the information is not OK.

    7. Re:Bad Comparison by Anonymous Coward · · Score: 1, Insightful

      However, it's not so simple when an asset held by the bankrupt company wasn't really theirs to sell in the first place. Suppose they had a fleet of cars which were leased. If they go bankrupt during the lease, they have to give the cars back, and cannot sell them.

      Ok, but the company can (depending on the lease terms) sell the lease to someone else.

      In a sense, the personal information was leased to company; it was never theirs to sell and shouldn't become theirs to sell just because of bankruptcy.

      No. Personal information is data, it isn't subject to lease. Little bits of personal information aren't even subject to copyright.

      The moral of the story is DON'T GIVE YOUR PERSONAL INFORMATION TO OTHERS. It's the only way to be sure that it won't be used against you.

    8. Re:Bad Comparison by Alsee · · Score: 1

      1. Set up facebook-like site with really good privacy rules.
      2. Let site grow with lots of safe personal details
      3. ???Don't go bankrupt???
      4. PROFIT!

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    9. Re:Bad Comparison by wowbagger · · Score: 2, Interesting

      "In a sense, the personal information was leased to company...."

      In a sense, I am levitating on a force-field right now - of course, that "force field" is created by the atoms of the chair.

      In a sense the data was leased; unfortunately that "sense" is not in the sense of the law, or the sense of GAAP, or any "sense" that is legally binding on the company or the bankruptcy court.

      What is needed is for companies that collect your data to EXPLICITLY state, as a part of the contract you enter into prior to them collecting the data, "We don't own this data, you do - we are just holding it for you. We have a specific license to use that data in this specific ways, and we cannot change that license without your explicit consent - we must destroy the data if we cannot continue to abide by this contract." (and IANAL so I don't know if that wording would stand up in court).

      Only something of that strength would prevent companies from "monetizing your data".

    10. Re:Bad Comparison by rollingcalf · · Score: 1

      "Ok, but the company can (depending on the lease terms) sell the lease to someone else."

      And in this case, the terms did not include the right to sell.

      "No. Personal information is data, it isn't subject to lease. Little bits of personal information aren't even subject to copyright."

      Ever heard of the word "analogy"? Of course it's not an actual lease. The point is if the company didn't have the right to sell or distribute a given asset, contract, patent, copyright, or whatever before going bankrupt, bankruptcy normally does not give them the right to sell or distribute it.

      --
      ---------
      There is inferior bacteria on the interior of your posterior.
    11. Re:Bad Comparison by Myopic · · Score: 1

      It's hard to go bankrupt and then go to step 4 profit. Those are sort of exclusive steps.

    12. Re:Bad Comparison by Artifakt · · Score: 3, Interesting

      One of the things I noticed re. Copyright law (a favorite subject for Slashdot, of course): I ran across the copyright indexes of several authors, such as H. P. Lovecraft, who were big on only giving magazines first publication rights, not the standard 'all rights' clause in contracts. Lovecraft was part of the amateur press scene of his time and actually wrote articles about it, aimed at new authors, plus he metioned it in several letters to fellow authors. HPL also died during the depression, and if you look at the copyright history of his work, a lot of stories pass from a single magazine such as Weird Tales, through many different small companies' hands, before the rights ended up being purchased by August Derleth and Donald Wandrei after the depression ended.
            It looks like a bunch of small presses bought republication rights from magazines such as Weird Tales that the magazine may not have actually owned to sell, and passed these around in one standard contract after another. It looks very strange to see four stories published in the same magazine the same year, all passing through different small press owners hands, with a bunch of corporate names that are all swiftly out of existence, have little or no actual publication history, or seem to maybe be nothing but shell corporations. You have to wonder, if Lovecraft is any indicator, if Weird Tales actually took the time to sell off rights to thousands of old stories one at a time, to literally hundreds of separate companies, instead of bundling them somehow. The explanation seems to be that at least some of these contracts came out of bankruptcy courts, which were working overtime in that era. Unfortunately, only a few of these documents have good paper trails, and it's hard to really prove one way or another.
              Given the middle of the Great Depression connection, I've wondered if this was because bankruptcy courts were distributing these assets as part of big pools of similar fluff, without taking the time to check all the details on items they doubtless felt were of little real worth. Probably they were focusing on the physical assets of the companies, where those existed, and didn't expect these 'IP' assets to ever come back into print.
              This may bear out what the OP wrote. In practice, the bankruptcy courts seem to sometimes ignore restrictions in contract whether that's really what the law says to do or not, particularly if the asset is perceived as having little value compared to the rest of what the court has to deal with.

      --
      Who is John Cabal?
    13. Re:Bad Comparison by Fractal+Dice · · Score: 2, Interesting

      Should datamining be a criminal offense?

      I mean, there is this big effort building laws and international standards surrounding and protecting the copyright on databases - perhaps the act of accumulating and correlating personal information in the first place needs to be examined and attached to the same infrastructure?

      If you value privacy, then it seems to me that legal restrictions are the logical endgame - as more and more databases of aliases are interconnected and more of our lives moves to online services, living off the grid will be a full time career of paranoia.

      Just food for thought.

    14. Re:Bad Comparison by Dishevel · · Score: 2, Insightful

      Not if your major debit holder is a shell corporation owned by you.

      --
      Why is it so hard to only have politicians for a few years, then have them go away?
    15. Re:Bad Comparison by tverbeek · · Score: 1

      This shouldn't be surprising at all. At least not if you understanding the concept of responsbility. Yes, the names and addresses of the magazine's subscribers and the sites users are an "asset"... but with that asset come responsibilities. There are strings attached to this data, and those strings are the terms under which it was originally gathered.

      --
      http://alternatives.rzero.com/
    16. Re:Bad Comparison by tverbeek · · Score: 3, 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.

      --
      http://alternatives.rzero.com/
    17. Re:Bad Comparison by Anonymous Coward · · Score: 0

      Suppose they had a fleet of cars which were leased. If they go bankrupt during the lease, they have to give the cars back, and cannot sell them.

      Unless your leasing spectrum from the government then you can sell it to anyone even if the spectrum was intended for small businesses only.

    18. Re:Bad Comparison by sjames · · Score: 2, Insightful

      Not really, set up service provider A and client company B. B does all the public work while racking up a huge debt to A. B goes bankrupt and sells off private data in order to pay A. A makes a huge profit.

    19. Re:Bad Comparison by sjames · · Score: 1

      Perhaps we should just recognize that personal data is the property of the person it's about. The same corporations that buy and sell personal data routinely claim things like price lists and vendor contacts as proprietary and even threaten to sue over disclosures.

    20. Re:Bad Comparison by Anonymous Coward · · Score: 0

      It seems to work on a per film basis in Hollywood?

    21. Re:Bad Comparison by demonlapin · · Score: 1

      You're assuming a bankruptcy judge won't see through that. Possible, but I wouldn't bet a lot of money on it.

    22. Re:Bad Comparison by Myopic · · Score: 1

      I would call that "hard", but I agree that could be done.

    23. Re:Bad Comparison by Anonymous Coward · · Score: 0

      Ever heard of the word "analogy"? Of course it's not an actual lease. The point is if the company didn't have the right to sell or distribute a given asset, contract, patent, copyright, or whatever before going bankrupt, bankruptcy normally does not give them the right to sell or distribute it.

      Why so rude? Analogy isn't used to decide laws. I agree, it's useful in ethics and the sale talked about here is highly unethical. However, bankruptcy is a legal process where you are allowed to violate contracts and not just for repayment of debt. Bankruptcy is unethical. You promised to pay someone and don't.

    24. Re:Bad Comparison by sjames · · Score: 1

      Or that he won't really care about the privacy concerns. Other than that, as long as the bankruptcy isn't a premeditated way to rip off creditors, he won't likely care.

      Now, if B goes bankrupt owing a lot of other creditors, he would likely see through it as a fraud and and make sure the other creditors are paid first. He'd still probably allow the sale of the personal data.

    25. Re:Bad Comparison by Anonymous Coward · · Score: 0

      Those courts sound pretty short sighted. Sorta like every tool that rants against the value of 'imaginary property'.

  6. I have just one thing to say by Chrisq · · Score: 4, Funny

    I'll be buggered if I enter my personal details on a gay teens website!

    1. Re:I have just one thing to say by Ibetthisisvalid · · Score: 1

      boom boom!

  7. Re:The morals of outing by Anonymous Coward · · Score: 1, Insightful

    Given that a petition is an attempt to change the law, people who sign one should be prepared to stand behind it. If you'll pardon the expression.

  8. Where do the subscribers live these days then? by YeeHaW_Jelte · · Score: 5, Funny

    "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?

    Maybe a bankrupcy of slashdot would be a good thing for the readers too ...

    --

    ---
    "The chances of a demonic possession spreading are remote -- relax."
    1. Re:Where do the subscribers live these days then? by Skapare · · Score: 2, 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???

      --
      now we need to go OSS in diesel cars
    2. Re:Where do the subscribers live these days then? by Lugae · · Score: 1

      "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?

      That's just it: it has probably changed a decent amount. If the original subscribers are not living with their parents, they are considering selling the subscribers' parents' addresses now. It could happen with any data sale, but I think that's the reason that the OP pointed out that the subscribers lived with their parents at that time.

  9. Promises by Hognoxious · · Score: 2, Informative

    My understanding was that the US doesn't have anything like the UK Data Protection Act 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?

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    1. Re:Promises by grantus · · 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.

      --
      Grant Gross, Washington reporter, IDG News Service
    2. Re:Promises by Errol+backfiring · · Score: 1

      But the point is, the buyers need not promise anything. So nobody violates a promise: the original company ceased to exists and the new owner did not make the promise. So this is more a responsibility issue and an issue whether personal data can be transferred or sold at all.

      --
      Nae king! Nae laird! Nae yurrupiean pressedent! We willna be fooled again!
    3. Re:Promises by Skapare · · Score: 3, Interesting

      The data is still in the hands of the original owners. By filing this with the BK court, the FTC has established that it is illegal (unless another party's argument can prevail, and this would most likely have to be litigated in a separate venue, not in BK) for the sale to be made. Effectively, the subscribers have a lien on the data, which amounts to an ownership of the right sale, held by the subscribers themselves, in absence. Selling it might then be considered no different than the sale of stolen goods (which even a BK court cannot do).

      --
      now we need to go OSS in diesel cars
    4. Re:Promises by sconeu · · Score: 1

      Selling it might then be considered no different than the sale of stolen goods (which even a BK court cannot do).

      Tell that to SCO and Judge Gross

      --
      General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
    5. Re:Promises by s73v3r · · Score: 1

      But one could definitely argue that selling the data in the first place represents a breach of privacy, and goes against the privacy policy.

    6. Re:Promises by Anonymous Coward · · Score: 0

      But does the policy have any legal weight at all?

    7. Re:Promises by xaxa · · Score: 1

      Interesting:

      Mr Davies said that the UK Information Commissioner had an obligation to protect any British citizens who may be on the database.

      "I would argue that this is a case where the Information Commissioner should write directly to the US and ensure action is taken."

    8. Re:Promises by Hognoxious · · Score: 1

      Right. We know that justice - or rather the law - can reach across the Atlantic. But from what I've seen, it's somewhat a one-way street, and it runs the other way.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  10. Is it a "promise" or a "contract?" by Anonymous Coward · · 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.

    1. Re:Is it a "promise" or a "contract?" by grantus · · Score: 2, Informative

      Nothing except the threat of a lawsuit filed by the FTC. The agency has brought several similar cases.

      --
      Grant Gross, Washington reporter, IDG News Service
    2. Re:Is it a "promise" or a "contract?" by hedwards · · Score: 2, Insightful

      Yes, there is. Privacy policy is a part of the ToS in most cases, and should they change it they are required to give those that are subject to it the opportunity to cancel the contract. Which is one of the reasons why companies like MS and Sony are such a joke, because they regularly change their terms, but offer limited ability to opt out, and definitely don't offer the ability to get a full and complete refund for the product affected.

    3. Re:Is it a "promise" or a "contract?" by Hognoxious · · Score: 1

      Surely that means the FTC are a joke since they let them (and you can add most telcos to the list) get away with it.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  11. Re:The morals of outing by uglyduckling · · Score: 1

    I'm not sure that's the case. A person may be happy to have their views shared with their elective representative(s) but not with the world at large. I'm not sure a person has to make their views widely public in order to participate in democracy.

  12. Re:The morals of outing by couchslug · · Score: 1

    Outing people who work to deny others civil rights is a bit different from outing people who were not organizing to do so.

    --
    "This post is an artistic work of fiction and falsehood. Only a fool would take anything posted here as fact."
  13. Think positively by Moraelin · · Score: 5, Funny

    Well, think positively. As more and more people grow up with CS and clones and other online games, soon we'll have a whole generation who thinks "gay" means "got more than one kill with a sniper rifle" or "won the roll on a piece of loot you wanted too".

    And for that matter than "I fucked your mom" is the new "good morning, sir. How do you do?" I can imagine a business meeting in 2020 going something like:

    CEO: "And now Mr Stevens the VIP of marketing will present the results from the latest market poll."
    Stevens: "I fucked your moms, ladies and gentlemen."
    Chorus: "Your mom's fat."
    Stevens: "As you can see on this graph, after our latest PR campaign, our brand recognition has risen by almost 20% and the sales by nearly 10%."
    PHB from the audience: "Dude, you're gay."
    Stevens: "Thank you."

    At any rate, they'll probably think that having been subscribed to a gay magazine is like subscribing to some gaming tricks site ;)

    --
    A polar bear is a cartesian bear after a coordinate transform.
    1. Re:Think positively by hedwards · · Score: 2, Insightful

      Doesn't help any of them that get kicked out of their house today. Or beaten and killed for that matter. Sure it's extreme, but it does happen, and given the fixation by bigots it does happen and over the population of 100k, it's definitely possible that at least one of those is in a situation where that's possible. Not likely as it's a risk to having that kind of publication in that situation, but still.

    2. Re:Think positively by Moraelin · · Score: 1

      Yes, well, homophobia in the USA is something sad and something I still don't rightly "get". I'll agree that it's a serious problem and didn't mean to imply otherwise. But my train of thought is really a bunch of clown cars chasing each other, and throwing pies at each other, and occasionally I get funny slapstick ideas like that about just about any kind of topic.

      --
      A polar bear is a cartesian bear after a coordinate transform.
  14. It Would Be A Nice Precedent by anorlunda · · Score: 1

    I can't recall any other case where government forced enforcement of privacy policy on third parties like bankruptcy courts. Even here, it is not clear if FTC is threatening action or just bluffing.

    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.

    Current intellectual property law is distinct from ordinary property law. Considering the fact that data possession and data processing are the major source of wealth in the 21st century, we badly need a better legal foundation for information. Traditional property rights, intellectual property rights and contract law all come up short.

    1. Re:It Would Be A Nice Precedent by Anonymous Coward · · 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.

  15. Usage as intended by the persons providing it ? by Anonymous Coward · · Score: 1, Insightful

    Such subscriber information is *not* just a list of NAW data. By its origin a quite important private piece of information is tagged to each-and-every of those peoples records : They are homosexual.

    If-and-when the list is used for its *by the subscribers* intended purpose (to be able to send the magazine and subscription-fee invoices to their subscribers) there is no problem.

    But if this list is *not* used for that purpose it should fall faul of the current rules regarding the aggregation of peoples data : NAW is allowed, anything more specific is, without the consent of the person, not.

    If this is not strictly regulated it would be easy to create a full database with every detail you want by becoming a "partner" of any company who, by its function, implicitily tags private information to its NAW data-list.

  16. Re:The morals of outing by icebraining · · Score: 1

    I disagree. Anonymous votes (and petitions are the same in this case) protect people from coercion, and therefore is freer.

    If petitions (and other votes) are open, you might be compelled to sign them for other reasons other than your political beliefs.

  17. Re:The morals of outing by Anonymous Coward · · Score: 2, Insightful

    I'm not sure a person has to make their views widely public in order to participate in democracy.

    Of course you have to make your views public if you want to participate in a democracy. Everything but your vote should be public.

    Especially political petitions. If you sign a petition, you are expressly making a public statement of your views on a subject. Otherwise, signatures on a petition could never be challenged.

    Why would you sign a petition and then expect the fact that you signed a petition to be private?

  18. FormerMember by Anonymous Coward · · 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.

  19. Gasp! OMBFG! You can't sell what isn't yours?!?! by FredThompson · · Score: 1

    Another day, another Kosian post on Slashdot.

    You can't sell what isn't yours to sell. Period.

    No story here. Oh, it's about gays or computers or ...

    This is the year 2010. The novelty of being gay or involving computers is so Carter administration.

  20. Re:The morals of outing by boneglorious · · Score: 3, Insightful
    If you're not willing to stand by your beliefs openly, then you may want to reconsider them. And democracy runs best when people are willing to continually reconsider their beliefs, rather than when people get an idea and then cling to it, regardless of how shamed or secretive they may feel about it.

    It's true that sometimes people do fear retribution for political actions, and justifiably so, but the only way to foster an open discourse, where social norms don't favor revenge or retribution, is to be open about one's beliefs and contribute to healthy debate.

    --
    Can I mod something +1 Scary if it's true but I wish it weren't?
  21. Re:The morals of outing by hedwards · · Score: 1

    You may disagree, but you're wrong. Petitions are opened so that the people can know who it is that's putting it up for a vote. In a vote, people know that the candidate that is running is behind it, and there's usually a listing of endorsements. The Republican party thought that it was clever to switch our county elections to non-partisan so that they could slip in one of their candidates undetected. It didn't work, the people saw through it. Turns out that folks in this county don't want to vote for that sort of trash.

    The petitions here in WA have been open for a good long time, and there has never been any evidence that doing so subjected people to undo influence or coercion. Even in this case the names for those that funded the referendum there is no evidence that they underwent any illegal harassment or other problems.

  22. Re:The morals of outing by Anonymous Coward · · Score: 0

    I'm sorry, I'm going to have to call you out on this, because you're begging the question.

    The entire debate is whether or not gay marriage is a civil right in the first place. The people who signed the petition don't believe that it is (otherwise, they wouldn't have signed it).

    No one is trying to prevent people from exercising their civil rights. They are, however, trying to prevent people from perverting an existing institution designed to build families.

    I already know the response ("two consenting adults") so save it - by that logic, is it a civil right for a mother to marry her son?

  23. Re:Gasp! OMBFG! You can't sell what isn't yours?!? by grantus · · Score: 1

    One of the targets of the FTC letter is the majority owner of the company that published XY (as the story says). The other target of the letter was an investor in XY. The assert ownership of the data.

    --
    Grant Gross, Washington reporter, IDG News Service
  24. Okay, call me stupid.... by Anonymous Coward · · Score: 0

    ..but when did my private information provided to a publication become the PROPERTY of said publication, which can be SOLD?

    I know that most of us fail to read the "fine print" on privacy disclosures when signing up for sites, but this seems pretty bold even by scummy info-harvesting standards.

    Also, what about sites where you actually do business? I can understand shady sites like Facebook, MySpace or Xanga selling info to stay afloat. I can even understand scummy pseudo-free sites like blogTV, Stickam and Tinychat gathering information and selling it to god-knows who. But what about sites like Newegg and Amazon? There's almost NO WAY to do business with these sites without giving up private information. Is my information theirs, and they can do whatever they want with it? If Newegg ever goes bankrupt, will they pimp their customer database to the penis enhancer/herbal viagra/discount rolex spammer crowd?

    And they say I look funny in my tin hat when I try to protect my privacy. Sheesh!

  25. No, the cat does not, in fact, "got my tongue." by Impy+the+Impiuos+Imp · · Score: 1

    It's interesting how government upholds private contracts when it wants to, and violates them when it wants to, as in the bankruptcies of GM and Chrysler, which involved overturning longstanding, traditional contracts with lenders to give certain lenders a larger share of the cut-up pie upon dissolution.

    --
    (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
  26. Re:The morals of outing by zstlaw · · Score: 2, Insightful

    Sadly you are mistaken. People do not reconsider beliefs often. In fact attempting to change deeply held convictions can cause cognitive dissonance since many other decisions have been based on that belief. In fact, people with deeply held beliefs often hold those beliefs even more strongly in the face of proof to the contrary. http://www.boston.com/bostonglobe/ideas/articles/2010/07/11/how_facts_backfire/

    But that is beside the point. There is no petition here, this article is about the potential outing of a million gay teens. Which could result in eviction, abuse, and other forms of harm. The FTC made the right call I just wish that consumer protections were more broad. Rather than "you can't do this as it violates your privacy policy" I would prefer "you can not sell consumer information as it could do harm".

    Imagine if facebook or myspace decided to mine and sell your data. "Ehh who cares, they already do." But studies suggest they can determine where you live, your sexuality, what you are interested in via your connections. So now even if you keep your data private they can probably figure out your birthday, orientation, former residences, etc. Now imagine if you are an actor or musician and have too many gay friends so they sell your info to a anti-gay group that starts protesting at your work and calling your family/friends/co-workers. You lose business partners, sponsorships, your family starts to wonder what you are hiding...

    You can not reason with a mob, they have others reinforcing their opinion and peer pressure would prevent most people from backing down. Only a culture of tolerance and/or stronger consumer protection would make this less likely. Right now we have neither. We are sometimes inching towards more tolerance but then I see anti-gay, anti-immigration, anti-Muslim, anti-intellectual materials and I despair.

  27. Re:The morals of outing by HeckRuler · · Score: 1

    Anonymous votes (and petitions are the same in this case)

    Well no, a petition is not a vote. There is the important difference in that a vote is open to all, scheduled, and is usually a periodic or reactionary thing. A petition is pro-active, and self-selective. A vote shows you the will of the majority. A petition shows you the voice of the minority. You don't need a petition if you can get more then half the populace to sign it.

    It didn't make sense to me at first, but secret voting does seem to be a good idea. It fixes some of the problems we've had in the past. Secret petitions would simply undermine the whatever legitimacy that petitions have.

  28. Re:The morals of outing by compro01 · · Score: 4, Insightful

    No one is trying to prevent people from exercising their civil rights. They are, however, trying to prevent people from perverting an existing institution designed to build families.

    So would you be in favour of prohibiting the marriage of heterosexual persons who do not plan on raising children?

    --
    upon the advice of my lawyer, i have no sig at this time
  29. Re:The morals of outing by icebraining · · Score: 1

    It fixes some of the problems we've had in the past. Secret petitions would simply undermine the whatever legitimacy that petitions have.

    I assumed they would have to be accessed by a court or whatever to verify it, but not to the general public, if requested by the person that signed it.

  30. Re:The morals of outing by icebraining · · Score: 1

    That is all nice if you assume you live in an open society where debate is accepted and people respect others' contrary opinions. But the reality is often very different.

    How many people have been persecuted or at least ostracized for defending different views that the majority? How many kids have been discriminated for their parents' opinions?

    Social pressure alone is enough to ensure that people, if forced to openly defend their opinions, and especially if they have children or other close family, will prefer to shut up and don't sign the petition even if they agree with it.

    In the end you'll have a more effective majority dictatorship and weaker minority opinions.

  31. Re:Gasp! OMBFG! You can't sell what isn't yours?!? by compro01 · · Score: 1

    You can't sell what isn't yours to sell. Period.

    Yes, but is it your information they're holding for a particular purpose (sending you a magazine), and thus your property or is it their information simply about you, and thus their property?

    --
    upon the advice of my lawyer, i have no sig at this time
  32. Re:The morals of outing by Anonymous Coward · · Score: 0

    No one is trying to prevent people from exercising their civil rights. They are, however, trying to prevent people from perverting an existing institution designed to build families.

    So would you be in favour of prohibiting the marriage of heterosexual persons who do not plan on raising children?

    Sigh. Do I have to explain this in small words?

    It says it right there in the bit you quoted: marriage is an institution designed to build families. Just because a couple doesn't plan on building a family doesn't mean that they shouldn't be encouraged to do so.

    Now I already know where this is going to go. You're going to suggest that gay couples can have children via adoption or other means.

    Well, that's nice, but studies have conclusively proven that children do best in stable, nuclear families. We shouldn't be encouraging people to bring children up in bad situations.

    Which is why marriage, as an institution, is designed to help create stable family units that bring children up in the best manner possible.

    Is it perfect? Of course not. But just because it isn't perfect doesn't mean we should make it demonstrably worse.

  33. Re:The morals of outing by Anonymous Coward · · Score: 0

    Sigh. Do I have to explain this in small words?

    It says it right there in the bit you quoted: marriage is an institution designed to build families. Just because a couple doesn't plan on building a family doesn't mean that they shouldn't be encouraged to do so.

    Now I already know where this is going to go. You're going to suggest that gay couples can have children via adoption or other means.

    So any heterosexual person that is unable to have children (say the man had testicular cancer and now can't get her pregnant) should not be allow to marry? Same level of reproduction as a homosexual couple.

    Well, that's nice, but studies have conclusively proven that children do best in stable, nuclear families. We shouldn't be encouraging people to bring children up in bad situations.

    Total hate mongering bullshit.

    Which is why marriage, as an institution, is designed to help create stable family units that bring children up in the best manner possible.

    Is it perfect? Of course not. But just because it isn't perfect doesn't mean we should make it demonstrably worse.

    And yet for many families, marriage is an 'institution', just like a prison institution due to abusive parents that people demand must stay together 'for the children' which only makes it a horrible place to be for the children.

  34. Re:The morals of outing by Anonymous Coward · · Score: 0

    Do you have any trustworthy sources? (Seriously? About.com?)

    So any heterosexual person that is unable to have children (say the man had testicular cancer and now can't get her pregnant) should not be allow to marry? Same level of reproduction as a homosexual couple.

    Of course not, because you're looking at edge cases. Is this really that hard to understand?

    Sure, you can find edge cases where a true marriage might not result in building a family.

    There are absolutely no gay marriages that can build a proper family.

    If you can't see the difference between a few fractions of a percent and 100% - well, it's not worth talking to you.

  35. Re:The morals of outing by Anonymous Coward · · Score: 0

    Do you have any trustworthy sources? (Seriously? About.com?)

    Well, I already showed the NewScientist one, so I'm guessing you missed that one, how about these? 1 2 3 4 Or are these not good enough for you? I'm of course assured you have many trust worthy sources that can show that a gay couple raise horrible children? You have yet to show one granted, but I'm sure its just because your saving the best for last.

    Sure, you can find edge cases where a true marriage might not result in building a family.

    There are absolutely no gay marriages that can build a proper family.

    If you can't see the difference between a few fractions of a percent and 100% - well, it's not worth talking to you.

    Many edge cases? Ignoring that oxymoron, its not as uncommon as you seem to want to insist on. The issue with abuse and bad parenting is not many people speak up about it but it happens more then enough that its a well know issue that these things happen in heterosexual couples (and is well documented from MANY cases, not 'edge cases' like you wish to dismiss them as). Granted I don't see many, if any, issues of home abuse by gay/lesbian couples, so it kinda shows that the more toxic homes are the heterosexual ones :)

    Also, what is your definition of a 'proper family'? What the bible tells you? Bible tells many things, with many of them contradicting itself, like Exodus 20:13 "Thou shalt not kill.", only to have Jesus himself command you in Luke 19:27 to "But those mine enemies, which would not that I should reign over them, bring them hither, and slay them before me". So much for don't kill. When you put your morals in a religion, you need to question what it says and not blindly follow. This happened in the Dark Ages and is now forever known as the worst times in history.

  36. Re:Gasp! OMBFG! You can't sell what isn't yours?!? by FredThompson · · Score: 1

    That's irrelevant. The information is an asset and they aren't free to dispose of the assets.

    Addresses are not private property, even if the road and all surrounding land are private property. Addresses are a function of license to use the road which comes from the government.

    It's similar to the way a font can be copyrihted but IP ownership of letters, themselves, is impossible.

  37. Re:Gasp! OMBFG! You can't sell what isn't yours?!? by FredThompson · · Score: 1

    Hmmm...well...that's more interesting than I first thought. One way to view this is the FTC is trying to prevent selling of assets because there was a privacy clause? I guess they'd pursue this as fraud?

  38. Peter S. Chamberlain Re Sale Private Web Data by Transaction7 · · Score: 1

    This is a very important legal issue, much broader than its narrow “gay” context, and the FTC is right! Some bankruptcy courts have permitted companies in Chapter 7 or 11 bankruptcy to sell the private information their members or customers have shared with them, in reliance upon privacy policies and guarantees, free and clear of those privacy guarantees to raise money for administrative expenses and to pay creditors. This is not that new an issue, but is one calling for such attention. It is generally accepted today that purely personal and private information, the public disclosure of which would be highly offensive to a hypothetical reasonable person of ordinary sensibilities, is subject to rights of privacy which have developed at common law and by statute. The late conservative Chief Justice Rehnquist wrote at least one of the key Supreme Court opinions establishing this point. Contrary to the impressions of some posters here, the issue and potential legal precedent here transcends the "gay teen" context in this particular bankruptcy proceeding and is very likely to affect an awful lot of us "straight" adults, not to mention teens, Consider just a few of the possibilities, e.g., a site for, for example: Survivors of childhood sexual assault including incest; Survivors of sexual assault as adults; Persons with medical conditions; Persons with mental health issues; Lawyers, doctors, hospitals, drug makers or testing labs, or pharmacies, medical records storage and retrieval firms, etc. who go bankrupt holding your personal, private, and confidential data; Personal or business financial data transfer or storage; Persons seeking lawyers or legal advice; I’ve been there. Trying to check some data on Russian – Argentine trade for an academic research paper when both currencies had multiple exchange rates and were legally non-convertible got me on a CIA list of suspected Soviet spies, long before the Internet, and our government kept me on that list and lied to my U. s. Senator and me about it for a generation before finally admitting it to me, years after they said then that they had told Nelson Rockefeller about it. . My law practice very unexpectedly came to involve representing an awful lot of survivors, and a few perpetrators, of aggravated sexual abuse of a child, mostly heterosexual incest. Some were members of the immediate and near extended families of, and molested by, prominent persons including elected and high appointed officials palmed off on us by both political parties, who, of course, never got investigated much less busted. Childhood incest survivor clients of mine, and I, have had occasions to go to, register, and post on sites we hope nobody ever connects us with. I have also represented a “gay” teen charged with the murder of a “gay” adult, among other occasions I have had to research both sides of controversial “gay” issues. The first time I addressed a committee of the Texas Legislature in support of a bill protecting the privacy of individuals undergoing psychotherapy, and my proposed amendment to ensure that this would cover group therapy sessions with or without the licensed therapist present but at his direction, not one member, practically all lawyers, realized that Texas did not yet have any settled legal protection for the privacy and confidentiality of doctor-patient communications yet. HIPAA notwithstanding, there are still an awful lot of gaps, not to mention unsettled areas, in medical and psychological, among other areas of, privacy law. I read on one computer-related site, to which I have lost the citation, that legal counsel for one of the large companies developing computerized medical records, proposed by Bush and provided for in the new PPAPA “healthcare” bill, has said that HIPAA does not protect the privacy of such stored records. Sale in bankruptcy of personal and private data obtained under a promise of privacy protection presents a very different issue than the closer one, t

  39. Re:The morals of outing by compro01 · · Score: 1

    There are absolutely no gay marriages that can build a proper family.

    Really? Reality is disagreeing with you.

    http://pediatrics.aappublications.org/cgi/content/abstract/peds.2009-3153v1
    http://www.apa.org/pi/lgbt/resources/parenting.aspx

    If you can read German or Spanish, here's a couple more
    1
    2

    I can link some more if you like.

    --
    upon the advice of my lawyer, i have no sig at this time