Sears Defends Itself Against Spyware Lawsuit

Boston, MASears, Roebuck and Co. is defending itself against at least one lawsuit alleging the company violated consumer privacy laws. The lawsuit follows a move by Sears to install tracking software (also known as spyware) on the computers of people who use the MySHC Community. However, critics argue that consumers are not fully aware of when the tracking function is active and were not properly warned that the software was being installed.

According to Sears, people who become tracked members of My SHC Community do so by invitation. Furthermore, Sears claims that the invitation includes a clear notice about the spyware. Despite that, people argue that they do not know when the application is running and may not realize that their personal information is being sent to Sears.

Benjamin Googins, a security researcher at Computer Associates, notes that the spyware transmitts everything, including email logins, banking logins and Internet use, to comScore for analysis. Furthermore, according to Googins, Sears actually has two different privacy policies, depending on what computer the reader is using. Both policies use the same URL. However, people who access the URL with a computer that has the spyware will see a privacy policy that uses language that is concrete, such as "monitors all Internet behavior." Those who use a computer that does not have the spyware will see a privacy policy that is somewhat more subtle, using language such as "provide superior service."

In his own critique of Sears, Ben Edelman outlined the process by which the My SHC Community is downloaded, including a look at how the tracking software is presented to consumers. Edelman found that Sears provides only "limited notice" that "falls far short of the standards the FTC has established. He goes even further to show that, "Sears' claims of adequate notice are demonstrably false."

This incident happened around the same time that Sears came under fire for its ManageMyHome Web site, on which any person could, allegedly, obtain access to other customers' purchase histories. That incident has also resulted in a lawsuit filed against Sears. The close timing of the two incidents has left many critics questioning whether or not Sears executives have a full understanding of what privacy really entails.

Many consumers are now left wondering whether or not they have the spyware installed on their computer. If they do have the spyware, they are concerned that they may be sending personal data to an outside source, one that they did not agree to give their information to in the first place. Some have taken matters into their own hands and paid professionals to remove the spyware from their computer, but doing so can be costly.

Consumers are now investigating the possibility of a class action lawsuit against Sears, alleging the company violated FTC standards and compromised their right to privacy.