Brief: Toy Sites in Court Privacy Battles

SAN MATEO (08/04/2000) - The attorneys general from 44 states asked a federal bankruptcy court in Boston this week to stop the now-defunct Toysmart.com Inc. from selling customer data to another company. The states argued that the company's plan to sell customer information as part of a bankruptcy settlement with the U.S. Federal Trade Commission would violate customers' privacy.

Separately, a California resident's lawsuit has accused Toys R Us Inc. and Toysrus.com of disclosing the personal data of customers who made purchases on the Web site from August 1998 to the present. The suit charges that Toysrus.com violated its privacy policy by giving the information to CoreMetrics Inc., a third-party marketing company. Toys "R" Us said it did not break any rules because CoreMetrics is prohibited from using or disclosing the data.

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