EToys' privacy policy said the company would not sell, rent, loan or transfer any personal information regarding customers or their kids to any unrelated third parties, Cornyn said. Cornyn asked the bankruptcy court to require eToys to notify its customers of its present intention to allow the customer list to be transferred if it is sold, and to allow the customers a chance to prevent the transfer of their personal information. A settlement permits the sale, but only if customers can opt out. Authorities can prevent Internet retailers from selling their lists only if they have a privacy policy posted on their Web site promising not to sell personal data, according to the Federal Trade Commission. Many Internet retailers that go out of business do not have such policies in place.
Bankruptcy laws are fuzzy when it comes to dot-coms.
Several bills have been proposed in Congress to limit how these companies dispose of customer data. Some Internet retailers have changed their privacy policies to gain wriggle room. Then subscribe to the IAW E-Mail Alert. Openwave Be a part of the communications revolution. Manage ten times more storage with one smart hire.