Sears receives light punishment for spying on consumers


Back in June, there was a report on WalletPop that Sears (NASDAQ: SHLD) and Kmart spied on customers who participated in an online marketing study. The company paid participants in the study $10 if they would download and retain software for "My SHC Community."

The participants were told that the software would help them "participate in exciting, engaging, and on-going interactions" on their own terms. Sears noted that the software would only monitor the participants' online browsing. Not so, according to the Federal Trade Commission (FTC), which reported that the software captured secured sessions from participants -- including online banking. The FTC and Sears came to a settlement and the company was less than apologetic for its maneuver.

Now, the feds have come to an official resolution of the case: Sears has to let people know when they are doing this, the company has to be up front about the possible outcomes of downloading the software, it has to help those who want to uninstall the software, and all data has to be destroyed. Seriously? There are no fines for the company? I think this is a bit too light, and I am sure there are many on the internet that agree with me.

Sears intentionally deceived its customers and received rather private information in the process. What if someone got a hold of the personal data and then went and ravaged someone's bank account? What if someone took the data and stole someone's identity? This was intentionally deceptive use of software by the company, and nothing is happening as retribution. Well, something is happening -- but it sure as heck isn't much, nor is it enough. Sears should have been fined quite a bit of money, this punishment means that the company is not going to learn its lesson. Moreover, I am not sure that the punishment will dissuade Sears (or any other company for that matter) in partaking in this behavior again. There should have been a major fine, as money is the only language these companies understand.

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Last updated: February 13, 2012: 10:07 AM

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