14 DAY TRIAL // The US Federal Trade Commission (FTC) has accused web analytics company Compete Inc. of deceiving its customers and failing to properly protect the sensitive information it has collected from them. In order to settle the FTC’s charges, the firm has promised to clean up its act.
Compete utilizes tracking software to collect data on browsing habits. The reports are sold to companies which want to improve their sales and web statistics.
However, the FTC found that the methods utilized by the company weren’t quite orthodox. To get users to install the software on their computers, Compete urged them to join a “Consumer Input Panel” which would presumably enable them to win rewards.
Another piece of software utilized by the company was a toolbar, which allegedly offered users “instant access” to details about the sites they were accessing.
The problem was that the firm didn’t collect only information on browsing behavior. The software installed on the customers’ computers allowed them to silently record all the information entered by users on websites, including usernames, passwords, credit card details, security codes, social security numbers and more.
The company ensured users that all data was stripped of personally identifiable information before being stored on their servers. However, in reality, Compete has not only collected all the data, but it has also failed to ensure that it’s transmitted and stored in a safe manner.
Compete has agreed to ensure that from now on its customers are made aware that their details are being collected. The organization has also promised to anonymize or delete the sensitive information it harvests, and to provide instructions on how its software can be uninstalled.
Furthermore, the firm will have to implement a comprehensive information security program and perform independent third-party audits every two years for the next 20 years.