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Violating Online Privacy Could Cost You

Nov 21 2009, 04:46 PM 

While Tagged.com braces for over $750,000 in fines and more lawsuits, Reunion.com prepares to fight class-action suits. All this for misusing user information that they could access.

As the fight against invasion of online privacy gathers momentum, more and more marketers are realizing, the hard way, that respecting customers and their data pays off ultimately.

Tagged.com, for example, was pulled up by users because the website apparently coaxed users to disclose their email addresses and passwords. It was later found that Tagged used these details and shot off invites to all new members’ email contacts telling them to join Tagged. Worse still, they made it appear as though the invite had been sent by the new member!

Imagine receiving a social networking invite from a trusted friend, only to later realize he or she didn’t send it. While it does no good for the website carrying out this campaign, it also damages the credibility of email marketing communication. As a result, people are bound to take similar email communication less seriously.

In an action that, once again, sent out a clear message to privacy abusers, Tagged.com has been asked to cough up no less than $750,000 in settlements to law enforcement officials in Texas and New York. Meanwhile consumers have decided to continue pursuing civil lawsuits against Tagged.

Another website that has had to suffer for similarly abusing user privacy is Reunion.com. Only in this case, it is the recipients of the deceptive email invites.

It all goes to show that abusing and misusing data, just because you have access to it, will come back to haunt you. If you ever do need to use data that you have collected, or want to share it with a third party, you would do well to take the user’s consent before doing so.

Source: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=117090

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