Federal Trade Commission busts Kmart, Sears for spyware use
Tuesday, September 15, 2009
This week, consumer retail giants Kmart and Sears were the targets of successful legal action by the FTC, which says that the company - Kmart and Sears are owned by the same firm - failed to "adequately disclose the scope of the tracking software's data collection."
The tracking software originated at sears.com as "My SHC Community," where consumers received an offer to download the "research software" in exchange for $10. The program then collected full details of every internet browsing session that occurred on a participant's computer, as well as non-web-related details about the computer itself.
It is alleged that Sears' software collected not just traffic data, but personal details and bank records as well. The breadth of the electronic surveillance was mentioned only in the midst of a 54-page license agreement, which violates FTC rules requiring "unavoidable" disclosure "prior to…and separate from" other license agreements.
Under the terms of the settlement, Sears will delete all information collected with the program and offer assistance to all participants wishing to delete the tracking software.
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