* Myspace barred from misrepresenting privacy practices
* Required to get 20 years worth of audits on privacy
program
* Company blames blunder on pre-acquisition privacy
practices
By Jasmin Melvin
WASHINGTON, May 8 (Reuters) – The Myspace social network has
settled charges that it misled millions of users about sharing
personal information with advertisers, part of a larger U.S.
government effort to crack down on companies that cash in on
consumers’ data without their consent.
The settlement with the U.S. Federal Trade Commission
announced on Tuesday will require the Beverly Hills,
Calif.-based company to create a comprehensive program that
protects consumers’ information and bars Myspace from
misrepresenting how it protects its users’ privacy.
Myspace will be subject to independent reviews of its
privacy program for the next 20 years.
The FTC in 2010 settled with Twitter over failures to
safeguard users’ personal information. Last year it also found
that Facebook and Google Inc engaged in deceptive
privacy practices. Facebook and Google’s settlements stipulate
20 years of audits to ensure consumers’ privacy is protected,
while Twitter is subject to 10 years of audits.
There is growing consumer concern about how Internet giants
collect and trade in vast amounts of detailed information about
their users’ online activities and real-life identities.
The White House and FTC have unveiled privacy guidelines to
address privacy violations, but they rely heavily on voluntary
commitments by Internet companies and advertisers.
Lawmakers have used the specter of legislation largely to
encourage self-policing, as a significant crackdown would face a
difficult path through the divided U.S. Congress.
PRIVACY BLUNDER
Digital advertising company Specific Media teamed with pop
star Justin Timberlake last summer to buy Myspace from News Corp
for $35 million, a fraction of the $580 million News
Corp paid for it in 2005. News Corp took a minority stake in
Specific Media as part of the sale.
“In order to put any questions regarding Myspace’s
pre-acquisition advertising practices behind us, Myspace has
reached an agreement with the FTC that makes a formal commitment
to our community to accurately disclose how their information is
used and shared,” Specific Media said in a statement.
The company added that it conducted a thorough review of
Myspace’s business practices after the acquisition with a focus
on ensuring privacy protections in its ad delivery system.
In the FTC’s complaint, the agency said that Myspace shared
the so-called “Friend ID” of users that visited certain websites
with advertisers without first getting consent, as promised in
the company’s privacy policy.
These Friend IDs could be used to find a user’s public
profile, which would give advertisers access to their name, age,
gender and any other information posted to the profile.
The FTC charged that the policy was deceptive and violated
federal law.
The settlement agreement will be open for public comment
through June 8, after which the FTC will decide whether to make
the consent order final.
