Antitrust Law Daily Wrap Up, PRIVACY NEWS: Six states reach $750K settlement with digital ad company, (Dec 12, 2014)

By Greg Hammond, J.D.

The Attorney Generals of six states, led by New Jersey, have reached a $750,000 settlement with digital advertising company PointRoll, Inc., resolving an investigation into whether the company circumvented privacy settings in Apple Inc.’s Safari Web browser. Connecticut, Florida, Illinois, Maryland, and New York participated in the settlement.

PointRoll allegedly used a browser circumvention technique that allowed the company to place cookies on consumers’ Safari Web browsers, despite privacy setting configured to block cookies from third-parties and advertisers. Cookies are small files that allow advertisers to gather information about users, such as their Web surfing habits. The practice allegedly violates Connecticut’s Unfair Trade Practices Act, Florida’s Deceptive and Unfair Trade Practices Act, Illinois’ Consumer Fraud and Deceptive Business Practices Act, Maryland’s Consumer Protection Act, New Jersey’s Consumer Fraud Act, and New York’s General Business Laws.

“Today’s settlement with PointRoll should serve as a reminder that we will not tolerate conduct that involves circumventing browser privacy settings without the consumer’s knowledge or consent,” stated New Jersey Acting Attorney General John J. Hoffman. “People have every right to surf the Web without fear that businesses are employing technical tricks to bypass their privacy settings.”

In addition to the $750,000 payment, PointRoll is prohibited from: (1) taking action to override an Internet browser’s cookie blocking settings configured by user choice or by default; and (2) misrepresenting a material fact or making a material omission regarding the purposes for which it collects and uses consumer information, or to the extent users may exercise control over the collection and use of their information. The company must also implement a privacy program that includes employee training on the importance of user privacy and how employees can help maintain it.

“Brazenly disregarding consumer preferences is an unwise business practice that borders on unethical conduct,” commented Department of Consumer Protection Commissioner William M. Rubenstein. “We applaud New Jersey’s leadership in the investigation and negotiation with PointRoll and we will continue to uphold Connecticut consumers’ right to choose.”

Attorneys: Alan Charles Raul (Sidley Austin LLP) for PointRoll, Inc. Glenn T. Graham, Deputy Attorney General of New Jersey.

Companies: PointRoll, Inc.; Apple Inc.

News: Privacy StateUnfairTradePractices