FTC Raises Spyware Charges against a Leading US Retailer

As per the news reports, America's one of the leading retailers, Sears Holding Corporation (SHC) - owner of Sears, Kmart and Roebuck and Co. - has consented to settle the charges imposed on it by the FTC (Federal Trade Corporation). According to the charges, SHC is accused of sneaking spyware or information-stealing software onto the systems of the customers.

In its petition FTC has said that Sears distributed the spyware developed by someone else under a market research program between April 2007 and January 2008. However FTC has not exposed the name of the third party which created the spyware, but Ben Edelman, Professor at Harvard Business School, has revealed that the SHC was working with ComScore.

FTC further alleged that Sears delivered pop-ups to 15 out of 100 customers through which he urged them to submit their email ID. Those who did furnish their e-mail ID received e-mail to "My SHC Community". These messages prompted users to download the software which would track their online browsing. They were also promised to get $10 on keeping that software for one month atleast.

This software when downloaded by unaware customers started keeping track of their browsing sessions and also monitored their sessions on the third-party sites. This is how Sears gathered online bank statements, online shopping details, video rental records, drug prescription records and library borrowing history of the customers without their consent, said FTC.

Sears has confirmed that research conducted by it concluded in 2008 and the alleged software was immediately taken off the service on the research project's conclusion. It also stated that all personal credentials were destroyed as no similar studies were in its future plan.

According to the proposed settlement, Sears would have to stop gathering information from customers who downloaded the tracking software. It would also need to destroy the entire data collected by it previously.

Under the terms and conditions of the settlement, in case Sears distributes or advertises such software in future, it will have to clearly reveal which sort of data will be tracked, monitored, or transmitted by the software, FTC stated.

Related article: FTC Reaches Million-Dollar Settlement For Spyware

» SPAMfighter News - 6/8/2009