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Analytics Company Settles Charges For User Tracking

An anonymous reader writes "A web analytics company has agreed to settle Federal Trade Commission charges that it violated federal law by using its web-tracking software that collected personal data without disclosing the extent of the information that it was collecting. The company, Compete Inc., also allegedly failed to honor promises it made to protect the personal data it collected. KISSmetrics, the developer and seller of the homonymous tool, has agreed to pay up to make the suit go away, but the the two plaintiffs will get only $5,000 each, while the rest of the money — more than half a million dollars — will go to their lawyers for legal fees."

29 of 43 comments (clear)

  1. And the real crime... by macbeth66 · · Score: 4, Insightful

    but the the two plaintiffs will get only $5,000 each, while the rest of the money — more than half a million dollars — will go to their lawyers for legal fees."

    Posted at the end of the submission.

    1. Re:And the real crime... by Anonymous Coward · · Score: 5, Insightful

      Already modded, but wanted to add something, so posting anonymously. In cases such as this, as well as class actions, lawyer fees really need to be set as a percentage, maybe 10-15%, of what the plaintiffs/class receive. This ensures both that the party causing the harm gets punished, and the part(y)(ies) that experienced the harm receive restitution as well. Because as it currently sits, these types of cases seem to be more of a welfare program for lawyers than anything else.

    2. Re:And the real crime... by Anonymous Coward · · Score: 1

      why should the people who did the work not get most of the money?

      Go ahead and ask your employer for 98% of the revenue you generate and see what they say.

    3. Re:And the real crime... by Desler · · Score: 1

      It was more than web tracking. They were logging and retransmitting in plaintext people's username/passwords, credit card info, social security numbers, etc. this is stuff they didn't disclose they were logging.

    4. Re:And the real crime... by retchdog · · Score: 2

      well, when you put it like that, i guess you should have been a lawyer.

      --
      "They were pure niggers." – Noam Chomsky
    5. Re:And the real crime... by ohnocitizen · · Score: 1

      How many lawyers and support staff worked on the lawsuit, and for how long? What kind of wages did lawyers make? I know it is *cool* to make fun of lawyers, but for the amount of work being done is it really that off the wall? As a web developer, I've seen half a million dollar redesigns, and the people on the project made anything from 30 to 80 an hour depending on their role. It might have been grossly high pay, but it might not have been for the actual work being done.

      To add another little thought nugget - consider a lawyer who is making 120k and working an 80 hour week. Compare that to the web developer making 100k and working 50 hours a week. Who has the higher salary, really?

    6. Re:And the real crime... by RaceProUK · · Score: 1

      Failure to comply with Data Protection laws.

      --
      No colour or religion ever stopped the bullet from a gun
    7. Re:And the real crime... by fyi101 · · Score: 1

      I always see all this outrage about lawyers fees at Slashdot, and how the plaintiffs get just a fraction, and how this should be made illegal, etc. Correct me if I'm wrong, but isn't the case many times that the lawyers bare the cost of the lawsuit (sometimes hundreds of thousands of dollars or more in legal and evidence investigation, staff, expert testimony, etc.) and therefore the risk, and if they lose they get nothing? I mean it's peachy and everything if they WIN and they get 10-15% and the plaintiffs the rest, but what if they lose?
        I'm sure many lawyers abuse the system, but I sure wouldn't put so much of my own money on the line if the payoff isn't worth it or the risk I end up ruined is extremely high (spare me any "sacrifice for justice" bull****. YOU go be a martir with your own money). If I'm not mistaken, some lawyers HAVE ended up ruined after losing a case.
      And even if they didn't end up ruined, what's wrong with these fees atracting top notch legal talent to the case and kicking some corporate butt? I'm not sure how a mandatory fee limit of about 10-15% to cover ALL expenses (say, about 60,000 dollars for this case) is going to help the plaintiff get good legal representation. Does a plaintiff really have to get 250,000 dollars to feel vindicated about some cookie tracking? I would think winning the case and hurting the company in its pocket would be 90% of the vindication...

      <sarcasm>But anyway, the important thing is that the lawyers are getting too much money, which is preventing all these companies from getting away with their illegal activities-- er, I mean preventing the plaintiffs from getting their money... yeah, that's the ticket! It's not that I have a thing against lawyers or anything...</sarcasm>

    8. Re:And the real crime... by smooth+wombat · · Score: 2

      sn't the case many times that the lawyers bare the cost of the lawsuit

      No. Attorneys only take cases such as these when they know they will win. What would be the point of taking a case where they, the attorney, bore the expenses without being compensated?

      This was a clear cut case so the attorneys took it knowing they could get bundles of money for themselves while making it seem like the plaintiffs won a victory.

      An instructor for one of my legal classes made the following statement when dealing with trials: Never ask a question to which you don't already know the answer.

      The same applies to cases such as this: Never take a case which you know you won't win.

      --
      We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
    9. Re:And the real crime... by Hentes · · Score: 1

      I disagree, two cases can be very different. This was not a highly technical case, and lawyers with the necessary technological and legal knowledge are rare, therefore expensive.

    10. Re:And the real crime... by KingBenny · · Score: 1

      isnt that the usual, the only ones who win in any trial is the lawyers and the judges anyway, unless maybe you get to be apple vs. samsung, and still then by the time it's over i wonder how much money they put into it

      --
      Free speech was meant to be free for all... how can anyone grow up in a nanny state ?
    11. Re:And the real crime... by fyi101 · · Score: 1

      Huh? What does not taking obvious loser cases have to do with this? And since when does knowing you can win a case mean you are taking advantage of the plaintiffs? I mean, if it's so "clear cut", they can surely "shop around" for lawyers then... The plaintiffs are not going to win this without some good legal advice anyway, are they?

      By the way, "Never take a case you know you won't win" contradicts your sig: "We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower" (I'm sure the context for the quote is different, but still...)

        And who decides what a "clear cut case" is? Setting the fees at 10-15% of the awards for all cases pretty much kills the posibility of many people succeding in cases where the legal expenses are high and they can't afford it, and if you think the problem is (not quoting you, just defining) "clear cut cases where the lawyers know they'll win and take home an easy paycheck", trying to codify into law what a "clear cut case" is involves putting the cart before the horses, I believe. It pretty much collides directly with habeas corpus, doesn't it? It involves deciding the case before there's even a trial... I'm pretty sure the defendants wouldn't consider it so "clear cut".

      The plaintiffs did indeed win "a" victory, as you put it. They burned a hole in the defendant's pocket, didn't they? And they showed a succesful strategy towards hitting them again where it hurts, if the defendant again breaks the law. I don't think arguing the results are unfair without clearly explaining exactly why they're unfair, providing an alternative, and showing how the alternative doesn't result in more injustice, is constructive.

  2. it's worse by Anonymous Coward · · Score: 1

    The wired article that this is based on actually says that the two plaintiffs will have to split the $5000...bet their wishing they went to law school right now.

  3. Re:Lawyers by ThatsMyNick · · Score: 3, Insightful

    Justice. Seriously, they did.

  4. Re:Lawyers by FauxReal · · Score: 1

    Their contribution was to help pave the way for the lawsuit to disappear. Sounds like a win/win between them and the defendants. Also, the plaintiffs get a settlement. A technical win/win/win. I'm sure everyone will spend the next weekend at their winter beach houses celebrating with some fine caviar and champagne relieved to see that privacy is once again on their side.

  5. Re:it depends on how big you are by fustakrakich · · Score: 1

    Or maybe Google is just finding another way to kill off the competition, using the FTC as its proxy. Lesson? Cover your tracks! Hide those hard drives...

    --
    “He’s not deformed, he’s just drunk!”
  6. Who should really win? by mckellar75238 · · Score: 1

    Apparently the real purpose of class action suits is not compensation for the victims, but rather punishment of the guilty; if that is really the case, it makes sense that the lawyers who did the work should be the big winners. But, in my mind, that a very big "if."

    1. Re:Who should really win? by zippthorne · · Score: 1

      No they shouldn't. If the assertion is correct that punishment is the goal, then the fines should go to either the victims or to the state (except in cases where the defendant is the state...). The lawyers' compensation should not be unlimited.

      Perhaps the fines should go to a kitty to be use to pay lawyers' fees for those who have been harmed, but who do not have the resources to hire their own lawyers, that way we can remove the argument that the lawyers' wins have to be huge to make up for deserving cases they take on spec that do not win.

      --
      Can you be Even More Awesome?!
    2. Re:Who should really win? by Desler · · Score: 2

      Then don't hire a lawyer on contingency if you don't like their terms. No one forces these people to sign the contract with the lawyer.

  7. Re:Lawyers by TubeSteak · · Score: 1

    In addition, the settlement bars misrepresentations about the companyâ(TM)s privacy and data security practices and requires that it implement a comprehensive information security program with independent third-party audits every two years for 20 years.

    There's more to the proposed settlement than just "a little money"

    That said, what judge would approve $10,000 for the plaintiffs and $500,000 for the lawyers?
    That'd be completely fucked if it gets approved.

    --
    [Fuck Beta]
    o0t!
  8. Re:Lawyers by socceroos · · Score: 1

    To the tune of half a million dollars? Open your eyes, son.

  9. These are two separate suits. by scdeimos · · Score: 3, Informative

    The summary doesn't make it clear: these are two separate suits. From TFA:

    1. Compete failed to remove personal data before transmitting it; failed to provide reasonable and appropriate data security; transmitted sensitive information from secure websites in readable text; failed to design and implement reasonable safeguards to protect consumers’ data; and failed to use readily available measures to mitigate the risk to consumers’ data. The proposed settlement order requires Compete and its clients to fully disclose the information they collect and get consumers’ express consent before they collect consumers’ data in the future, that the company delete or anonymize the use of the consumer data it already has collected, and that it provide directions to consumers for uninstalling its software. The settlement bars misrepresentations about the company’s privacy and data security practices and requires that it implement a comprehensive information security program with independent third-party audits every two years for 20 years.

    2. KISSmetrics has also agreed to settle a lawsuit that charged them with using a tool that would "resuscitate" cookies deleted by privacy-minded users in order to surreptitiously track their online behavior. KISSmetrics has agreed to pay up to make the suit go away, but the two plaintiffs will get only $5,000 each, while the rest of the money - more than half a million dollars - will go to their lawyers for legal fees. The settlement does not contain an admission of guilt from KISSmetrics, but just a promise that it will not track users without their permission in the future.

  10. Re:Half a million dollars is a speed bump by Kalriath · · Score: 3, Informative

    It's nothing like that actually. There's two completely different lawsuits mentioned in TFA which the editor (oh. Samzenpus.) managed to compress into one when doing the summary. Compete doesn't actually have to pay a cent, but their settlement with the FTC requires them to complete third party audits every two years, immediately cease the infringing activity, delete (or anonymize) any data it already collected, and get express consent before ever collecting info again. KISSmetrics has to pay half a million dollars for developing their platform in such a way that it resurrected deleted cookies so that you couldn't escape tracking. They also didn't admit guilt, so there's nothing stopping them carrying on doing it.

    --
    For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
  11. Worst summary ever by Kalriath · · Score: 1

    There's two completely different lawsuits mentioned in TFA which the editor (oh. Samzenpus.) managed to compress into one when doing the summary. Compete doesn't actually have to pay a cent, but their settlement with the FTC requires them to complete third party audits every two years, immediately cease the infringing activity, delete (or anonymize) any data it already collected, and get express consent before ever collecting info again. KISSmetrics has to pay half a million dollars for developing their platform in such a way that it resurrected deleted cookies so that you couldn't escape tracking. They also didn't admit guilt, so there's nothing stopping them carrying on doing it.

    --
    For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
  12. Wired on Kissmetrics by sugarmotor · · Score: 1
    --
    http://stephan.sugarmotor.org
  13. Re:Lawyers by retchdog · · Score: 1

    the slashdot and net-security.org articles are wrong, it's actually $5,000 total ($2,500 each) and $510,000 for the lawyers.

    and they might not even get that: ``In the event the Court approves the Settlement, but declines to award Named Plaintiffs’ Incentive Awards in the amount requested by Settlement Class Counsel and agreed by the Parties, the Settlement will nevertheless be binding on the Parties."

    what a beautiful racket.

    --
    "They were pure niggers." – Noam Chomsky
  14. Re:Socialist fucks by mckellar75238 · · Score: 1

    A completely free market doesn't really benefit society as a whole nearly as much as it does the strongest competitors -- who are not necessarily the best citizens. It's a special case of "might makes right" -- not, IMHO, the best basis for an economic or social system. But then, no one worries about walking through the valley of the shadow of death if they think they're the biggest, baddest motherf*cker in the valley.

  15. Re:Half a million dollars is a speed bump by neonKow · · Score: 1

    Eh? I don't think I'm following. If KISSmetrics didn't admit guilt, then why are they paying at all? And if they continue to do it, can they get fined again?

  16. Re:Half a million dollars is a speed bump by Kalriath · · Score: 1

    It's not a fine. It's a "settlement". You know the sort - the one that keeps it out of court to avoid a precedent being set?

    --
    For a site about things like basic rights, Slashdot users sure do like to censor "dissent".