DoubleClick Agrees to Change Privacy Policy

Online advertising service DoubleClick has agreed to pay $450,000 and alter its privacy policies to end a 30-month investigation into its use of consumers' personal information by 10 states.

In a statement today, DoubleClick said it has agreed to adhere to specific requirements regarding disclosure, data storage, and data usage. However, the company said the settlement agreement was not an admission of wrongdoing.

"In order to maintain its position as a leader in online privacy, DoubleClick has worked closely with the attorneys general to build upon the robust privacy practices it has already implemented," Elizabeth Wang, general counsel for DoubleClick, said in the statement.

A DoubleClick spokeswoman said the company had no additional comments.

The investigation, which began in February 2000, focused on a DoubleClick decision to share consumers' personal data without their knowledge. The U.S. Federal Trade Commission also launched a probe of the company information-sharing practices at that time. The FTC later ended its investigation without finding that DoubleClick had violated its own privacy policies.

Can We Trust E-Commerce Yet?

DoubleClick collects consumer data while it displays Web page banner ads and provides other e-commerce technology services as a contractor to Web sites. Through its widespread network of Web site clients, DoubleClick is able to use its cookies to track the surfing activity of any given computer.

Under the settlement, New York-based DoubleClick agreed to pay $450,000 to cover the costs of the investigation and for consumer education, according to a statement provided by the New York Attorney General's Office.

In addition, DoubleClick has agreed to post a privacy policy that tells consumers how it will use their personal information and will give consumers access to their online profiles.

"It's hard for consumers to trust e-commerce when they can't see the practices behind the promises," Spitzer said in the statement. "DoubleClick is to be commended for its cooperation in setting an industry standard for promoting consumer privacy in the data collection and tracking taking place across networked Web sites."