Class-action lawyers snapped into action after Internet privacy specialists disclosed the relationship July 31. Attorneys who filed the lawsuits said it is likely that the federal cases will be consolidated in one courthouse, either in Newark or California. They claim that Coremetrics was working as a contractor to analyze how customers behaved online at the Web site. The lawsuits will be closely watched in the industry as a legal test of how the courts treat companies that claim they will not disclose information to third parties, said Robert Smith, editor of the Privacy Journal newsletter.
Companies have to realize that they have to post a policy with great care and deliberation.
The lawsuits also underscore the sensitivity of personal privacy in the Internet age. Computer users routinely complain in surveys that a fear of being surreptitiously watched deters them from using the Internet. Those lawsuits also come at a time when state and federal regulators and legislators have failed to reach a consensus on how to protect personal privacy and prevent unauthorized disclosure of online data. Still, the Federal Trade Commission and state attorneys general are working to protect privacy. The FTC, for instance, is investigating DoubleClick, the giant online advertising service, for its business practices.