Sears gets mere wrist slap for allegedly spying on customers
Filed under: Shopping, Consumer Ally
Consumers were outraged when a settlement first reported on WalletPop in June was reached between Sears Holdings over an accusation by the Federal Trade Commission that the owner of Sears and Kmart was spying on the web use and online shopping habits of its customers. They won't be a lot happier with the ending.The feds just officially resolved the case after commissioners accepted the proposed settlement and the penalty for Sears' alleged overzealous, privacy invading behavior wasn't even a slap on the wrist. It was a gentle touch. The harshest part of whole situation was the FTC actually letting people know the situation even happened.
The penalty: if Sears offers such a software program again it should be more honest about the implications. Sears has to destroy all the data -- which was already done. And, Sears needs to help those who want to uninstall the software.
Ouch. That should discourage other companies from doing this sort of thing.
Between April 2007 and January 2008, visitors to the Kmart and Sears web sites were invited to join an "online community" for which they would be paid $10 with the idea they would be helping the company learn more about their customers. It turned out they learned a lot more than participants realized or that the feds thought was reasonable.
To join the "My SHC Community," users downloaded software that ended up grabbing some members' prescription information, emails, bank account data and purchases on other sites. Sears called the group that participated "small" and said the data captured by the program was at all times secure and was then destroyed.
The FTC filed a complaint against Sears, accusing the retailer of deceiving those who signed up for the service and downloaded the software.
"(Sears) failed to disclose adequately that the software application, when installed, would: monitor nearly all of the Internet behavior that occurs on consumers' computers, including information exchanged between consumers and websites other than those owned, operated, or affiliated with respondent, information provided in secure sessions when interacting with third-party websites, shopping carts, and online accounts, and headers of web-based email; track certain non-Internet related activities taking place on those computers; and transmit nearly all of the monitored information (excluding selected categories of filtered information) to respondent's remote computer servers," the FTC concluded.
Reader Comments (Page 1 of 11)
9-15-2009 @ 6:15AM
Ex Kmart Shopper said...
Kmarts are dirty,old,overpriced and poorly managed.Employees are poorly trained and most likely poorly paid.They also have alot off outdated mdse on there counters,
Reply
9-15-2009 @ 10:34AM
Dudley Haas said...
They know so much about us that they even looked under my toupee and checked the netting to see what I'm worth and they even know EXACTLY how many wrinkles my prune faced wife Betty has. Now, if I could just find a good iron from Sears or Kmart, I could try ironing some of them out. She's got so many wrinkles that they have become burbundus! But her cat eyes turn me on!!! 2, 3, 4 -- Sha na na na na na live for today!!!!!!!!
9-15-2009 @ 12:47PM
ed said...
there counters??? You mean their counters???
9-17-2009 @ 3:15PM
Edward said...
It seems to me that you don't know what you are talking about. When was the last time you were in a Kmart? I work at Kmart and my store is not dirty or poorly managed. I know what I'm doing because I was trained correctly. My pay may not be the best but I started out higher than most because of past experience. As for the merchandise there is nothing outdated about it, actually about every week we are adding new things. We are the only stores that have layaway anymore and we do double coupons about once a month during the week. Show me any other store that does that. You can't!
9-15-2009 @ 6:36AM
mat said...
Well I think Wal-mart just got more of my business. I believe I've just stepped into a K-mart and Sears for the very last time ever. How's that for a touch on the wrist.
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9-15-2009 @ 7:51AM
jackie said...
Mat be very careful buying any cards for your carmera to hold the pictures. My daughter bought one because we were taking a trip we put it in the carmera and it didnt work. we took it back to walmart with the recipt and they refused to take it back saying we dont know if you bought it here da!!! we cant take it back so we had to suck up the 20.00 what a rip off. I will be contacting the attorney generals office. Good luck
9-15-2009 @ 8:41AM
Rhonda said...
big deal...I'm sure Wal Mart does it too they prob paid the feds off to keep it out of the media!
9-15-2009 @ 8:45AM
Joe Bruce said...
I am boycotting Wal-Mart as well. Any company that subjects its employees to drug testing is just as bad as spying on their internet habits. Legalize freedom or stop calling it the Land of the Free. Unfortunately a country that is stolen can never be golden. And finally there's no Justice in the System, JUST US in the system. Had this been a few individuals spying on people in the same manner do you think a judge would have said, "Now you guys better not do this again, now get out of my courtroom." Didn't think so.
9-15-2009 @ 12:02PM
Courtney said...
Why not give Target, Amway Global or someone else your business besides Walmart so that you can support America?
9-15-2009 @ 10:02AM
louise said...
You are absolutley right! Walmart just got bigger and all my appliances will come from Lowe's
9-15-2009 @ 10:27AM
Shannon said...
Walmart is just as bad. they just didn't pull this particular stunt. anyone who thinks they are taking a step up with walmart is grossly uninformed
9-15-2009 @ 10:32AM
mark said...
The same goes for me!
9-15-2009 @ 10:48AM
Lisa said...
Joe, Most places of employment do drug testing now. I didn't mind being tested for illegal drugs when I worked, of course, I didn't take illegal drugs either, and I didn't want to work with people who did. You agree to be tested when you take the job and sign the papers, etc. and after all, they are ILLEGAL drugs, right? Just my 2 cents.
9-15-2009 @ 6:46AM
Pat said...
Kmart is making it miserable to shop in their stores. Bad decision on their part. I recently went into three different Kmart stores. I asked each store manager why is the building so hot. They say that sears controls the temperature of the stores now. I explained to the manager it is to hot to shop. I won't be shopping at Kmart anymore. I expect comfort in a store that I am spending my hard earned money at. Nope, its back to Wal-mart.
Reply
9-15-2009 @ 8:56AM
Drea said...
Pat, a lot of the big box companies do that. The temperatures in the stores are controlled by their corporate, which means if you are in Florida where it is hot and humid and corporate for that store is up north where weather might be a bit cooler, they will set the thermostat to their climate.
9-15-2009 @ 9:01AM
kelly said...
Walmart does the same thing from there home office if its cold in bentonville and hot in florida the heat will be on in florida
9-15-2009 @ 9:06AM
kelly said...
shop at Target.. Walmart is just as bad. I work there and I had a man at the home office rip off credit cards in my name he had access to all my info.. shop Target
9-15-2009 @ 9:13AM
roy said...
What utter drivel! Yes, big brother corporation is computer controlling all the stores nationwide based upon the weather in Illinois. Are people so stupid that they believe this idiocy? It couldn't be that the Kmart is being cheap and turning off the air conditioning sooner than they should? It couldn't be so simple as that. At my employer all the HVAC systems in the older buildings don't work correctly. Why? Because people screwed them up because they don't know what they are doing.
9-15-2009 @ 11:27AM
Jack said...
Hate to tell you, everything like that is controlled in Bentonville.
9-15-2009 @ 1:14PM
V said...
When I worked at Sears, it was ridiculously cold in the building and I couldn't work comfortably without a sweater or jacket, even in the middle of summer. When I begged management to turn down the A/C, they told me the same thing: that the temp is controlled by corporate. It's bullshit. And Sears doesn't control K-Mart's bldg. temperatures. They were trying to pass the blame to someone else. They just don't want to go through the trouble of having to go into the control room and mess with stuff...and I guess I don't blame them. There were buttons and controls for everything, and if I were asked to mess with them, I would probably decline for fear that I'd screw something up, which has happened. But still....they could've considered your complaint and taken it up with corporate, but it's just too much trouble for them.