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Yahoo To Clean Up Marketing Policies

Settles Charges Filed by New York Attorney General

October 3, 2003
Yahoo will pay $75,000 and clean up its marketing policies as part of a settlement with the New York Attorney General.

New York's Eliot Spitzer opened the investigation last year after Yahoo told registered users in March 2002 that it was changing its marketing policies.

At that time, Yahoo told users they would receive marketing promotions within 60 days unless they went to a privacy preference page on the Web site and indicated that they did not want to receive marketing targeted for different interests.

"It is neither appropriate nor legally permissible for a company to compile a database of personal information through an online registration process and then attempt to use the information for telemarketing purposes to target consumers who have stated that they do not want to receive solicitations," Spitzer said.

"Moreover, consumers need, and the law requires, adequate and effective notice about changes to the way a company utilizes a consumer's personal information," he said.

Under the agreement, Yahoo will pay the costs of Spitzer's investigation and will clearly notify consumers of any marketing policy changes and allow them ample time to opt out of promotional lists.

Under the settlement, Yahoo must send an e-mail to registered users telling them about any marketing policy changes, telling them how they can decline and giving them 30 days to opt out of related promotional campaigns.

Yahoo also agreed to not market to consumers who supplied a telephone number and who had declined marketing previously.

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