A federal judge in Pennsylvania has dismissed wiretapping and surveillance claims against eCommerce companies AddShoppers, Nutrisystem, and Vivint. The decision in Ingrao v. AddShoppers found that the plaintiffs’ personal information was not used improperly for targeted advertising purposes.
The Allegations
The plaintiffs alleged that the companies compiled users’ personal information to send targeted ads which violated privacy laws. However, the court determined that the information was not actually disclosed in a manner that would support that.
This ruling shows an important example of how courts view the collection and use of consumer data by eCommerce companies for ads.
Key takeaways include:
- Simply collecting user data for internal ad targeting may not constitute illegal disclosure under certain privacy laws
- Plaintiffs must demonstrate actual improper disclosure of personal information to outside parties to support surveillance and wiretapping claims
- eCommerce companies still need robust privacy policies and practices, but have some flexibility in using collected data for their own marketing
As online privacy remains a hot-button issue, eCommerce brands must strike a balance between using user data for effective advertising and respecting consumer privacy rights. Clear policies and secure data handling practices are essential.
Read More: The Legal Intelligencer
Dia´s Weekly Download Edition #25
