Consumer Law

Sears settled a Federal Trade Commission complaint alleging that it failed to adequately disclose the scope of the information it collected through a downloaded software application available to members of its "My SHC Community."  According to the Commission's complaint, Sears paid certain consumers $10 to download "research software" that would track their "online browsing."  The invitation from Sears to participate provided the following:  "This research software will confidentially track your online browsing. This will help us better understand you and your needs, enabling us to create more relevant future offerings for you, other community members, and eventually all shoppers."  This does not sound so bad -- track my "online browsing." However, on screen 4 of the 11 screen "Privacy Statement and User License Agreement," Sears explained that the software is more invasive than the invitation made it seem.  According to the agreement, the software "monitors all of the Internet behavior that occurs on the computer on which you  install the application, including both your normal web browsing and the activity that you undertake during secure sessions, such as filling a shopping basket, completing an application form or checking your online accounts, which may include personal financial or health information."   According the Commission's complaint, these disclosures were inadequate to inform consumers that the software would monitor all of their online secure sessions ? including sessions on third parties? web sites -- and that the software would collect information from these sessions, such as the contents of shopping carts, online bank statements, drug prescription records, and even the sender, recipient, subject, and size for web-based e-mails.

The consent requires Sears to stop collecting this information and to destroy the information it has already collected.