TELECOM Digest OnLine - Sorted: Online Payment Company Settles Privacy Charges

Online Payment Company Settles Privacy Charges

Lisa Minter (
10 Mar 2005 19:12:15 -0800

WASHINGTON (Reuters) - An Internet payment company has agreed to
return the money it earned from selling a list of nearly 1 million
customers to telemarketers and junk mailers without permission,
federal regulators said on Thursday.

Utah-based CartManager International sold the names, addresses, phone
numbers and purchase history of consumers who used its "shopping cart"
software to make purchases on thousands of Web sites, the Federal
Trade Commission said.

Many of those Web sites told visitors that any personal information
they provided would be kept private, the FTC said.

CartManager said that it would retain "full ownership" of consumer
data, but buried that notice in a lengthy online agreement and did not
explain how it intended to use that information.

CartManager parent company Vision I Properties LLC agreed to pay back
the $9,000 it earned from the sale of customer data and clearly
disclose when it intends to sell customer data in the future. The
company faces increased penalties if does not abide by the agreement.

CartManager was not immediately available for comment.

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