Avenue A, Inc. has agreed to place 100 million banner ads and pay up to $925,000 in legal fees as part of a settlement of several privacy lawsuits.
The settlement, announced yesterday, stipulates that the firm will add a clear explanation of its online ad serving services to its privacy policy.
The class action suits were filed by in California, Texas and in the U.S. District Court for the Western District of Washington. The settlement, which will be finalized at a hearing at the district court next March 6, covers all these actions.
Avenue A agreed that personally identifiable information collected on consumers will be used with previously gathered anonymous data only after the consumer has been given notice and choice.
The settlement also requires that all Avenue A cookies will expire within five years after the date on which the cookie was served. In addition, Avenue A will not link expired cookies to new cookies.
The firm also agreed to limit employee access to log files in which data gathered by the cookies is stored.
Avenue A also agreed to launch an education program, teaching Internet Users how to protect their privacy. This campaign, which will be funded by Avenue A’s insurer, will include the banner ads.
The company will also retain KPMG to conduct two annual reviews of its compliance.
The company also agreed not to oppose an application to the District Court for attorneys’ fees and costs totaling $925,000. It will pay what the court orders within 20 days of the final dismissal.
The plaintiffs were represented by Milberg Weiss Bershad Hynes & Lerach LLP.
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