ReverseAuction Settles FTC Privacy Charges

Share this article:
Online auction house ReverseAuction.com Inc. agreed this week to settle Federal Trade Commission charges that it violated consumers' privacy by capturing customer information from a competitor's site and then sending deceptive e-mails to those customers soliciting their business.


ReverseAuction, Washington, is barred from engaging in such practices in the future and must delete the personal information of customers who received the offer but declined to register with ReverseAuction. In addition, the company must give those who did register as a result of the solicitation the opportunity to cancel.


According to the FTC, ReverseAuction registered with competitive online auction site eBay and, in violation of its privacy agreement with eBay, harvested the e-mail addresses of that site's customers.


ReverseAuction then sent those customers e-mails containing a deceptive subject line informing them that their eBay user ID "will expire soon."


Many customers believed that eBay authorized the mailing, the FTC said. Sending deceptive spam, violating the eBay user agreement and misleading customers about the source of the e-mail were violations of federal law, the FTC said.


Reverse Auction issued a statement denying any wrongdoing and saying that it has agreed to comply with the FTC's remedy so it can put the matter behind it.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

DMA 2014 Kicks Off Under New Management

DMA 2014 Kicks Off Under New Management

Thomas Benton and Jane Berzan will preside over an event indicative of an association serving a wider array of industry segments.

De Quinto Tapped as Coke's Next CMO

De Quinto Tapped as Coke's Next CMO

The president of the company's Iberia Business Unit will take over from Joe Tripodi upon his retirement in February.

Customer Centricity Is Spurring Marketing-Tech Investments

Customer Centricity Is Spurring Marketing-Tech Investments

A majority of marketers rank customer satisfaction improvements as paramount in the technology investment decisions.