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Internet Service Provider Settles FTC Privacy Charges

Company Disclosed Personal Information of Nearly One Million Consumers

An Internet company that provides shopping cart software to online merchants has agreed to settle Federal Trade Commission charges that it rented personal information about merchants' customers to marketers, knowing that such disclosure contradicted merchant privacy policies. The settlement will bar use of the personal data the company has already collected, as well as future misrepresentations about the collection, use, or disclosure of personally identifiable information. The settlement also requires the company to ensure that consumers receive a clear and conspicuous notice before their personal information is disclosed to other companies for marketing purposes. Finally, the settlement requires that the company give up the fees it made renting the consumer information.

Vision I Properties, LLC, doing business as CartManager International, provides shopping cart software and related services to thousands of online merchants. When consumers are ready to make a purchase, they enter information on "shopping cart" and "check out" pages that ask for their name, address, phone number, e-mail address, credit card number, and merchandise. The pages are designed to look like the other pages on the merchants' sites, and typically display the merchants' names and logos, but are actually located on the CartManager site.

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