The Federal Trade Commission want to know whether Internet giant Yahoo! has disclosed user data to third parties against federal rules. The commission has asked Yahoo! to submit documents to determined if the Web portal complies with FTC consumer protection rules. But the FTC calls it a "routine" probe only, so far.
The Yahoo! probe could also include GeoCities, a subsidiary which helps people set up their own Websites. GeoCities settled with the FTC two years ago, a deal in which GeoCities agreed to change how it gathers and shares user information, according to the FTC.
The FTC said Yahoo! is cooperating in the case. The portal itself said any findings that either Yahoo! or any subsidiaries broke FTC privacy rules could mean official proceedings "which could potentially have an adverse effect on our business, results of operations, and financial condition," according to a company statement.
"We take privacy very seriously," says Yahoo!, in another statement. "We are committed to it, and we are proud of our record." Most recently, in a move which seemed to support that contention, Yahoo! e-mail users were given a special Bulk Mail folder which catches unsolicited commercial e-mail (spam) sent in bulk, giving the user the option to delete it immediately or to look at it of their own free will.
The FTC says computer advances make it easier and cheaper to share information on individuals, which also helps criminal investigators as well as advertisers. "(But) at the same time, as personal information becomes more accessible, each of us - companies, associations, government agencies, and consumers - must take precautions to protect against the misuse of that information," the commission says on its Website (www.ftc.gov).
The probe was instigated when California HealthCare Foundation reported on health-related Websites in January, examining 21 health-related Websites including Yahoo!. California HealthCare believes the sites "have not matured enough to guarantee the quality of information, protect consumers from product fraud or inappropriate prescribing, or guarantee the privacy of individuals' information," according to the Associated Press.
