| The Federal Trade Commission turned its legal guns on failed online merchant Toysmart.com, prompting industry experts and the FTC itself to warn that regulators may clamp down on e-retailers.
E-retailers believe that the Internets unique ability to collect names, addresses and buying habits of consumers is one of the mediums greatest strengths. But recent developments indicate that such a capability is drawing greater regulatory attention.
The FTC filed a complaint against Toysmart.com in U.S. District Court in Massachusetts seeking a preliminary injunction to block the company from selling consumers profile data, product preferences, billing information and family profiles including the names and birthdates of children. Toysmart.coms own privacy statement, still posted when the case was filed, promised that such information is never shared.. |