Question
Payingfast.com's website is for sale on eBay. They claim to have over 200,000 registered users so what happens to all of their personal info including credit card numbers?
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=3802123268&category=46 687
I think I know the answer. http://community.here.com/infopop/em...icon_frown.gif
Blanche
Answer
PayingFast Privacy Policy page, brief as it is.
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Privacy
Payingfast.com respects your privacy.
We do not sell, rent, loan or transfer any personal information regarding our customers to any unrelated third parties. Any information you give us about yourself is held with the utmost care and security and will not be used in ways to which you have not consented.<HR></BLOCKQUOTE>
Not a word about selling the farm, however.
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"Why be a man when you can be a success?" -- Bertold Brecht
Answer
I just found an AuctionBytes article about payingfast.com being for sale and it looks to me like EVERYTHING is for sale:
http://www.auctionbytes.com/cab/abn/y04/m03/i05/s00
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Some customers were concerned because news of the sale had come without any prior notice to registered users, and raised issues of privacy. Payingfast collected eBay User IDs and passwords for sellers who wished to display the Payingfast logo in their eBay auctions. Rand explained, ?The registered users have not been informed because we will be running the site and taking care of any issues users may have.?
Rand declined to say whether eBay User Names and Passwords that were collected on the site would be sold, and if so, whether users would be able to opt-out from having their names and passwords be transferred.<HR></BLOCKQUOTE>
Blanche
Answer
When Exxon and Mobil merged, so did their customer list, credit card holders, etc. etc. Nobody freaked out about that... and that was MILLIONS of "registered users."
Companies are bought and sold all the time. Vendor and customer lists are normally one of the business assets sold. I don't understand what the difference is between offline "private information" being sold with a business, and online "private information" being sold.
Customers are a business asset. If you buy JC Penny, you get their customer list. If you buy Bally's Health Club, you get their customer list. Why should the customer list of PayingFast NOT be sold with the domain? What value does it have WITHOUT the customer list? Considerably less, I'd say...
eBay Items ~~ Yahoo Items ~~ eBay Store ~~ Online Store
Answer
G'day Bobby,
I see a big difference between a merger of established corporations like Exxon and Mobil, and whoever may just decide to pony up $20,000 almost anonymously on Ebay.
Certainly if Ebay, PayPal, Western Union, or some other company established within the industry (or a somewhat related industry) were to be buying PayingFast, it would be equivalent to the paralel that you draw, but if it is simply bought by an Ebay newbie, say, starwarsfan236 or iluvnigeria, there could be some reason for concern for the current/previous users who have given out personal info believing that it is secure.
That said, two terms suggest that there is a chance that such info *may* not be included (the latter also suggests that payingfast could not make the business viable):
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>New owner must obtain their own merchant accounts
We have discountinued service for new orders as of 3/4/2004. We are servicing any issues of orders that have already been approved and mailed.<HR></BLOCKQUOTE>
Kind Regards, Kevin
Answer
Why can't a customer just change their ebay password? Then there won't be a problem.
Answer
My understanding is along the line of Bobby's - if the user list is part of the business, it's considered an asset, and can be sold along with the business. If a company tried to sell the list as a separate asset, against the terms of the company's privacy policy, then there could be some issues. Also, if the new ownership changes the terms of the privacy policy, the users should be notified and allowed to opt out.
In the near future, 3rd party vendors won't be retaining eBay passwords - eBay will be implementing a system using encrypted tokens, so this probably won't be an issue. Of course, that doesn't help the people who have already given their eBay username and password to 3rd party services...
Another point...the auction has been ended by the seller.
Answer
Bobby, I believe the whole issue of a DotCom selling their customer's personal data depends on the DotCom's Privacy Policy. If they say they won't share it with a third party then they CANNOT do so. As long as a company has a Privacy Policy which states they will protect the customer's personal info and they DON'T have a provision detailing the circumstances in which this info may be sold or transferred, they cannot sell said info without the customer's consent. The company has an obligation to stand by it's Privacy Policy because it's akin to a contract between the company and the customer.
That's the reason eBay changed their Privacy Policy to include the following:
http://pages.ebay.com/help/policies/privacy-policy.html
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>will share some or all of your personal information with another business entity should we plan to, merge with, or be acquired by that business entity. Should such a combination occur, we will require that the new combined entity follow this privacy policy with respect to your personal information. If your personal information will be used contrary to this policy, you will receive prior notice in as provided in Section 12 ("Notice").<HR></BLOCKQUOTE>
http://www.computerworld.com/securit...,59387,00.html
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>EBay Amends Its Privacy Policy
Would allow the transfer of customer information if merger or acquisition occurs
Online auctioneer eBay Inc. has revised its privacy policy to allow the company to share customer information in the event that eBay or one of its subsidiaries merges with or is acquired by another company.
"It is possible that eBay, its subsidiaries, its joint ventures or any combination of such could merge with or be acquired by another business entity. Should such a combination occur, you should expect that eBay would share some or all of your information in order to continue to provide the service. You will receive notice of such event," the privacy policy now reads.
The revision, posted a week ago, would explicitly allow San Jose-based eBay to transfer that information and avoid the legal hassle that now-defunct Toysmart.com Inc. encountered when it tried to sell its customer list as an asset during bankruptcy proceedings last summer.<HR></BLOCKQUOTE>
EBay changed their Privacy Policy because of the FTC's suit against Toysmart. Ideally, Dot Coms should also notify their customers regarding the sale of the company and include an Opt Out option.
http://www.techlawjournal.com/privacy/20000710.htm
FTC Files Suit to Bar Sale of Toysmart's Customer Data
http://news.com.com/2100-1023-258344.html?legacy=cnet
eTour accused of selling customer info
http://www.informationweek.com/story/IWK20010827S0005
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Egghead Sale Sparks Privacy-Policy Concerns
If Egghead is not careful, it will follow in the footsteps of Toysmart, says E-commerce attorney Jason Epstein, with Baker, Donelson, Bearman & Caldwell. The Federal Trade Commission prevented Toysmart's attempt to sell its customer data after filing for bankruptcy, because its privacy policy--like Egghead's--stated that the company would not sell customer data for any reason. Following that case, Epstein says his E-commerce clients and big-name E-retailers such as Amazon.com Inc. revised their privacy policies to reflect instances when customer data would be sold as part of an acquisition. "A privacy policy could be construed to be a contract," Epstein says. "There is the potential for civil liability from people whose information was handed over without their permission." <HR></BLOCKQUOTE>
http://www.cfo.com/printarticle/0,53...html?f=options
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Dot-Coms, Databases, and Dollars
But rather than sticking by or strengthening their privacy policies, some companies have responded to the Toysmart case by inserting a few lines into the policies' fine print. The companies have simply added clauses saying that in the event of a sale or bankruptcy, customer data can be sold or transferred to a third party.<HR></BLOCKQUOTE>
http://www.computerworld.com/securit...,62989,00.html
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Web site restricted from selling customer data to third parties
Under the order, consumers must be provided notice that Essential is going out of business and that a successful bidder will take over telephone service in its place," said the statement. "The successful bidder must disclose to consumers what its own privacy policy will be and what the rates and terms of service will be. This will give consumers a chance to decide whether to accept the bidder as their new telephone company. If consumers choose not to accept service from the successful bidder, they can transfer their phone service to another provider, and their personal information must be destroyed. Their personal information will only be kept to the extent required by law or as needed for billing purposes. The company was ordered to not disclose or transfer information to third parties under any circumstances." <HR></BLOCKQUOTE>
http://news.com.com/2100-1017-246198.html?legacy=cnet
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Texas officials, Living.com reach settlement on privacy
The state of Texas and failed Web furniture store Living.com reached quick agreement today after the state sued the company to prevent it from selling customer information.
Less than an hour after the state attorney general's office sought an injunction against the Austin-based company, the two sides reached agreement, according to the attorney general's office.
As part of the proposed settlement agreement, the Amazon.com-backed Living.com agreed to destroy all of its customers' financial records, such as credit card, bank account and social security numbers.
Living.com will be allowed to sell names and email addresses, but only after notifying all its customers of the company's impending sale. A customer must also be given a choice whether to "opt out" of the proposed sale.<HR></BLOCKQUOTE>
Payingfast's Privacy Policy states:
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Privacy
Payingfast.com respects your privacy.
We do not sell, rent, loan or transfer any personal information regarding our customers to any unrelated third parties. Any information you give us about yourself is held with the utmost care and security and will not be used in ways to which you have not consented.<HR></BLOCKQUOTE>
This clause: "Any information you give us about yourself is held with the utmost care and security and will not be used in ways to which you have not consented" leads me to believe they cannot sell their customer's personal info WITHOUT the customer's express consent.
Hello David. http://community.here.com/infopop/em...icon_smile.gif
Blanche
Answer
Hi Blanche! As always, you make some very good points. http://community.here.com/infopop/em.../icon_wink.gif
Answer
Latest info is that Payingfast.com is no longer up for sale and they're working to resolve their issues and get back up and running again...
Posted by the Seller in the Paypal discussion boards over on eBay.
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