TRUSTe Applauds Bankruptcy Court Decision Regarding Toysmart.com

August 17, 2000 – TRUSTe applauds the decision of United States Bankruptcy Court Judge Kenner to reject the Federal Trade Commission (FTC) settlement in the Toysmart.com bankruptcy case. TRUSTe had objected to the FTC settlement because it failed to provide customers with notice and an opportunity to choose whether to allow their personal data to be transferred to a new buyer.

TRUSTe's CEO and Executive Director, Bob Lewin, today commended the widespread support for action to prevent the inappropriate sale of Toysmart.com's customer database.

Said Lewin, "Today's decision is a victory and serves as a precedent of how government and industry must work together to ensure that no Web site can go back on their privacy promises. After alerting the Web community in late June to Toysmart.com's intended sale of personal, private information, we received an overwhelming response from the Federal Trade Commission and more than 40 state attorneys general. By pooling the strong arm of the TRUSTe program with the weight of appropriate government intervention, we have sent a strong message to consumers online: there are third parties that will fight to ensure that you are always in control of your personal information to protect your privacy."

TRUSTe will continue to closely monitor this situation.

 

Ponemon Institute