The New York Attorney General announced a settlement in a case against Echometrix, a software company that sold “Parental control software” that collected data on kids using the Internet for marketing purposes. EPIC filed a complaint with the FTC in 2009 alleging that Echometrix had engaged in unfair and deceptive trade practices and violated the Children's Online Privacy Protection Act. EPIC's complaint highlighted several aspects of Echometrix products that threatened consumer privacy. Documents obtained by EPIC, pursuant to a Freedom of Information Act request, revealed that the Defense Department canceled a contract with Echometrix following the EPIC FTC complaint. Under the settlement with the New York Attorney General's Office, Echometrix will pay a $100,000 penalty to the state of New York, and has agreed not to "analyze or share with third parties any private communications, information, or online activity to which they have access." For more information, see EPIC - Echometrix.
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by Ryan Calo, A. Michael Froomkin,