"Even failing dot-coms must abide by their promise to protect the privacy rights of their customers," said Chairman Robert Pitofsky. "The FTC seeks to ensure these promises are kept."
That policy states that:
Personal information, voluntarily submitted by visitors to our site, such as name, address, billing information and shopping preferences, is never shared with a third party.
The policy continues:
When you register with toysmart.com, you can rest assured that your information will never be shared with a third party.
Toysmart's creditors filed an involuntary bankruptcy petition in the U.S. Bankruptcy Court for the District of Massachusetts, Eastern Division, on June 9, 2000; Toysmart filed its assent to the bankruptcy petition on June 23, 2000. In light of the company's bankruptcy case, FTC staff may file a notice of appearance and a notice of pending action in the Bankruptcy Court.
The Commission vote to authorize staff to file the complaint was 5-0.
NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court.
Copies of the complaint are available from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580; 877-FTC-HELP (877-382-4357); TDD for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710.
(FTC File No. 002-3274)
Office of Public Affairs
Bureau of Consumer Protection