revises privacy policy

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http://news.com.com/2100-1023-870270.html

revises privacy policy

By Jim Hu

Staff Writer, CNET News.com

March 28, 2002, 7:30 AM PT

Web portal has revised its privacy policy to more clearly describe how

personal data will be treated in certain circumstances, company executives

said.

The new policy states that will share information to investigate

circumstances involving illegal activity such as fraud, violations of its

terms of service agreement, and the use of its service for potential

threats. The revision also said will transfer user information if it

is acquired by another company and abide by the acquiring company's privacy

policy.

The changes were sparked by economics and the ongoing trend among companies

to comply with investigative bodies following the Sept. 11 terrorist

attacks.

" It's the swinging of the pendulum, " said Evan Hendricks, editor of privacy

newsletter Privacy Times. " It has swung very much toward making it easier to

disclose information. "

Stating a policy for user data in the event it is acquired could also clear

a barrier for 's future. If the company's policy prohibited it from

sharing user data with anyone, users could pose a legal challenge to

any transfer of user data to a new owner, Hendricks added.

Indeed, Internet companies that have explicitly barred sharing user data

with any third parties have stumbled into legal problems when entering into

a merger or acquisition. Last summer, Fry's Electronics' proposed

acquisition of Egghead.com hit a stumbling block because of this privacy

barrier. Fry's eventually cancelled its $10 million bid.

's privacy was previously separated into three categories for children,

financial information and its overall terms of use on its site. Srinjia

Srinivasan, vice president and editor in chief at , said the changes

were made mainly to consolidate the three policies into one, and to

elaborate certain cases where personal data would be used.

" Fundamentally our approach remains unchanged, " Srinivasan said. " It's

always been a mantra of notice and choice. We're always looking to make this

complex issue as clear as possible. "

She added that worked closely with Truste, which vouches for sound

Internet privacy practices, to craft its changes.

will begin e-mailing a notice of the changes beginning Thursday

morning to all people registered on .com. Given the size of this

population, the e-mailings will not be completed for a few weeks.

International sites will not be included.

In addition to the policy changes, revised the way it offers

information about its own products.

users will now automatically have their marketing preferences set to

accept updates from a smattering of 's businesses. Previously, users

were offered one option to either accept or reject product notices when

first registering on the site.

Users will have to click " no " to opt out of receiving e-mails from a

selection of 13 products, ranging from job listings to new media

products to inclusion in 's user surveys, among other things. The page

also has an option for users to opt in to the Delivers service, which

sends product pitches from third parties.

users will have 60 days upon receiving notice to opt out of these

promotions.