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AMAZON.COM FACES PRIVACY INVASION LAWSUITS

Source: PC Week

February 8, 2000

      Online retailing giant Amazon.com Inc. and its Alexa Internet software subsidiary face two privacy invasion lawsuits and an informal inquiry by the Federal Trade Commission, Amazon said.

      The suits allege that Alexa secretly intercepted electronic communications and other personal data with its computer software program and sent the information to third parties, including Amazon.

      The legal actions alleged that Amazon and Alexa invaded the privacy of the software users and broke two federal laws as well as the California Business and Professions Code, Amazon said in a filing with the Securities and Exchange Commission that came after the market closed on Monday.

      The company denied the allegations.

      Amazon also disclosed in the filing that the FTC is conducting an informal inquiry into certain information practices by Alexa.

      The agency has asked the subsidiary for various documents to determine if it engaged in unfair or deceptive acts, Amazon said.

      There was no further information about the lawsuits or the FTC probe in the SEC filing. A telephone call to Seattle-based Amazon was not immediately returned.

      Alexa, acquired by Amazon in June, develops Web navigation services that work with Internet browsers to provide information about the sites being viewed and suggests related sites.




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