Feds: Sears duped and spied on its customers online
Filed under: Shopping, Technology, Buyer Beware
After enticing customers to participate in an online marketing study, the company that owns Sears and Kmart spied on them -- capturing their secure web use and spending, the Federal Trade Commission alleged recently in a case against the company. Sears Holdings Management Corp. today settled that case, agreeing to stop the practices, instruct their customers how uninstall the software that had been watching them and to destroy the data that was collected.Here's what happened...
Sears recruited participants in its marketing study off its web site and paid participants $10 if they downloaded and retained the software. They were told the software for "My SHC Community" would allow them to "participate in exciting, engaging, and on-going interactions – always on your terms and always by your choice." They also were told the software would only monitor their online browsing, the FTC said.
Instead, the FTC said, Sears' software captured secured sessions from participants including online banking, drug prescriptions and even library borrowing history. In addition, the FTC said, Sears also was able to see certain information from web-based email programs and even from some non-Internet computer activity.
Sears was unapologetic and admitted no wrongdoing in settling the case. In a statement, the company maintains that it was above-board with participants.
"Sears Holdings takes the safety and security of our customers' private information very seriously. The company conducted a research project nearly two years ago with a small panel of consumers who were recruited online to better understand the surfing behavior of US retail customers," the company's statement said. "The panelists were informed upfront of the nature of the work being conducted and were paid for their participation in the study. At all times, Sears Holdings ensured the privacy and security of the personal information of all participants who enrolled in the program. We also worked to ensure best practices of its disclosures and notifications to panelists."
The company said that all the personal information gathered has already been destroyed and that the software was removed, adding, "No tracking software is being deployed on any of Sears Holdings' sites or communities."
You can decide for yourself. Read the marketing materials here.
Reader Comments (Page 1 of 7)
6-05-2009 @ 6:15AM
Iselin007 said...
Must be true Sears has everything.
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6-05-2009 @ 8:06AM
Lenore said...
Sears has been practicing bait and switch for decades, and K-Mart has become a dismal place to shop since the merger. (They make Wal-Mart seem trustworthy and pleasant by comparison, no easy task.) I'm glad there are repercussions for unscrupulous retail practices and hope customers take notice and use caution about surrendering data or granting access to personal technology. Shame on Sears and K-Mart, and caution to any business engaging in dishonest schemes.
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6-05-2009 @ 7:22AM
xsearscustomer said...
I stopped shopping Sears a long time ago. I don't know how many times they have been on TV about cheating their customers at their auto repair business. I was one of the victim. Telling me I needed repairs that I didn't need. Sears just doesn't like to make money the old fashion way. I won't go near their stores fearing if I do they will pull some of their tricks. They seem to enjoy cheating their customers. They were just recently on TV about selling tires at their auto shop that was 10 years old. It is deemed when a tire is 10 years old that is no longer safe even if it new. All dirty tricke there. They may be filing for bankruptcy soon or going out of business. But they will never believe it is part of the problem they they cheated their customers. Once a proud company they decided we can make much more by being dis-honest.
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6-06-2009 @ 6:48PM
Sharon said...
I hate to burst your bubble but all auto places tell you, you need to fix things that dont need fixing. I went with my boyfriend to the car place (toyota) and they told him he needed to get like a few things fixed and hes like are you sure i got all those fixed last time and they looked it up on the computer and they were like oh...i see. yea no you dont need it fixed then i guess.... they just make things up and hope you go along with it.
6-05-2009 @ 7:47AM
Reb said...
Sears Holding Mangement Copr. was unapologetic and admitted to no wrongdoing?? I think heads should be rolling at SMC, arrests should be made, and prison terms served!! This just goes to show how we are being screwed by big business, insurance companies, AND our own government! The Federal Trade Commission should be at the top of their game and be investigating arresting all involved in the type of bullshit that is happening today but instead they are "sweeping it under the rug" or slapping wrists!
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6-05-2009 @ 8:00AM
xbucfan said...
Aroung 1975 my wife and I bought three rooms of furniture from a Sears store. Within two weeks the legs of the dining room chairs broke. This was all with very reasonable use. I took the chairs back to the Sears store and they gave me a big hassle about returning them. Finally they were replaced with less expensive, but more durable chairs. I had to place the new chairs on my credit card while Sears accounting / bookkeeping "caught up". This was just to make Sears accounting easier. If Sears had treated me right in 1975, I would have been a loyal customer ever since, but since this is the way I was treated, I have not been a Sears store since them.
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6-05-2009 @ 8:00AM
Susan said...
Sears is another word for "garbage" in every sense. Garbage merchandise, garbage business practices, garbage employees.
I HATED shopping at Sears as a kid but my mom insisted because she was a cheapskate and her best friend's husband worked there so she thought she had to show them she was a great friend and shop there.
I wore trash to school and got laughed at for years.
When I got older I RAN away from Sears. Why waste money on ugly, cheap clothes that fell apart and crap appliances?
My idiot mom continued to shop there, then was stumped when her useless Kenmore appliances died young and couldn't be repaired, their clothes were falling apart and she got snarled at by the sales people on the rare occasions she could actually find one.
Retail is competitive and I am the customer; I will never set foot in a Sears again. I deserve decent merchandise for my hard-earned money and I deserve a sales person who is not going to act like I am a nuisance because I want to buy something.
I did not think those were too much to ask but at Sears I am in the wrong.
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6-05-2009 @ 11:20AM
jim said...
I bet the salespeople at Sears are sooooooooo happy you take your business elsewhere!
6-05-2009 @ 1:52PM
Joe said...
What a double headed jerk you are! Calling your mom an idiot. Just what does that make you? People are really going to take your comments seriously....NOT
6-05-2009 @ 2:10PM
Laura said...
I think your response says more about you than it does your mom or Sears. How sad.
6-05-2009 @ 2:16PM
Akuin said...
I think it all depends on what Sears you go to...My family has never had a problem with our Sears here. When things break and can't be replaced further (Which has never happened mind you) They replace it free. My dad's tv, a small AV jack broke and it wasn't made anymore so the guy -replaced- my dad's tv with a new HD Widescreen tv that was -bigger- then what we had before....I really do think that experience with a company is result of who you have working there, if they don't care to be there they won't care about the customers.
6-05-2009 @ 3:21PM
Jasper Jackson said...
Susan: Your lack of respect for your mother and apparant profound shallowness forces me to completely ignore everything you said. It appears you only love money. How long have you been in therapy?
6-05-2009 @ 6:19PM
Beth said...
Susan, I am astonished at your post. My parents have shopped at Sears my whole life, but we did it in my youth out of necessity. We didn't have much money, and I can remember picking out one toy per year for Christmas in the Sears catalog. My husband and I bought Kenmore appliances without hesitation, and now I buy from the Land's End department. Sure, Sears has had problems recently, but name one company that hasn't! Call your mother Susan, because I'm sure you haven't in a long time.
6-05-2009 @ 10:57PM
ron said...
i agree with susan sears is another word for garbage i bought 300,000 dollars worth of there tools ...when they were good now as a professional mechanic i will never buy another tool from sears it's just like buying tools at kfart you know the ones made in china!
6-05-2009 @ 6:38PM
roachel m. said...
Hope your mom doesn't read that, Susan. It's a little harsh.
6-05-2009 @ 7:14PM
Annie said...
Poor Susan. Her mommy bought her new school clothes every year. Imagine the horror! I think the kids that were laughing at you were probably doing so because you had a penchant for overreacting and whining, and not because of the clothes you wore.
6-06-2009 @ 2:51PM
Jeff said...
Your post is funny. You wore trash to school for years and got laughed at. Too funny, Susan.
6-06-2009 @ 3:00PM
Jeff said...
Everyone leave Susan alone. Her comments regarding Sears AND her Mother are priceless. I'm still laughing and she should be a comedian getting paid for this type of humor or honesty, whichever you prefer.
6-06-2009 @ 4:06PM
Robert said...
Welcome to WalMart Susan!
Your mom told us you would be showing up seeing how Sears and KMart have you on the customers no longer welcomed at our stores list.
6-06-2009 @ 6:34PM
Frieda Jane said...
Wow are you sure that you are not one of my kids? I have one that no matter what I have done for her she is not satisfied, she also ran away from home and I was so glad that she was over 18 as when she tried to come home I could legally tell her no. I hope that you, Susan, have left your parents home and give them the peace that they deserve fro having such an ungrateful brat kid. Oh yes, if you think that your mom is an idiot for buying things at Sears, why don't you but the stuff for her elsewhere??????