U.S. FTC Investigating Yahoo Over Data Practices

SAN FRANCISCO (03/30/2000) - Yahoo Inc. confirmed today that it is being investigated by the U.S. Federal Trade Commission (FTC) over its data collection practices. The news came to light as the Web portal company submitted its annual 10-K report to the U.S. Securities and Exchange Commission (SEC).

"We have been contacted by the FTC and have been asked to help them understand certain of our data collection practices," a Yahoo spokesperson said in a phone interview today. "We understand that the inquiry was prompted by the California HealthCare Foundation report dated January 2000 on health Web sites."

Yahoo is voluntarily providing information to the FTC investigation, the company spokeswoman said.

The Web portal company faced legal hot water earlier this week when three rival games makers -- Nintendo of America Inc., Electronic Arts Inc. and Sega of America Inc. -- filed a joint lawsuit against the firm Tuesday alleging that Yahoo had knowingly aided the sale of illegal and counterfeit video games on its Internet auction site. Yahoo has yet to comment publicly on the game makers' lawsuit. [See "UPDATE -- Game Makers File Lawsuit Against Yahoo," March 29.]Yahoo, based in Santa Clara, California, can be reached at +1-408-731-3300 or via the Internet at http://www.yahoo.com/.

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