Toyrsus.com will clarify its privacy policy and pay $50,000 to resolve an inquiry by the state of New Jersey.
The company, which generated $180 million in sales last year, had used confusing wording in its Internet privacy policy, according to the state’s Division of Consumer Affairs.
The firm, while not admitting wrongdoing, agreed to:
*Assure consumers it would not misrepresent its privacy policy regarding the collection and transmission of personally identifiable information obtained from purchasers of products online.
*Provide a complete and accurate summary of pits policy regarding the disclosure of personal information collected from consumers who access its Web site.
*Maintain a clear link to its privacy policy on its Web sites, and disclosure the use of “cookies” or other online tracking devices.
In 2000, Toysrus.com severed its relationship with Coremetrics, an online research and analytics firm after the filing of two class action lawsuits.
The suits alleged that Coremetrics was tracking and compiling customer information and site-browsing activity at Toysrus.com, and giving that information to third parties in direct conflict with the toy retailer’s privacy policy. (DIRECT Newsline, Sept. 30, 2000).
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