The social networking site Myspace on Tuesday settled Federal Trade Commission charges that it misled its users about what information it shared with outside advertisers, and agreed to implement extensive privacy reforms.
The FTC alleged that Myspace violated Section 5 of the FTC Act, which bars deceptive acts or practices, by promising users it would not share their personally identifiable information without their permission. In reality, according to the FTC’s administrative complaint, Myspace revealed unique user “Friend IDs” to advertisers, which meant companies “could take simple steps to get detailed information about individual users.”
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