By Chris Bellini and Hill Wellford
Two recent developments in the field of Internet privacy law – one a federal appeals court case, the other a California statute – could have significant impacts on a company's online privacy practices, including its Internet site and the content of its "Privacy Policies" or "Privacy Statements." These developments concern whether a breach of a privacy promise is violation of federal law (including potentially a criminal violation), and whether (and how) businesses must notify their customers if a breach of privacy or security occurs.
The In Re Pharmatrak Case – "Wiretapping" Under a Privacy Policy?
The federal case is In Re Pharmatrak, Inc. Privacy Litigation, a May 2003 decision issued by the Court of Appeals for the First Judicial Circuit (the "First Circuit"). A group of pharmaceutical companies used Pharmatrak, a web-monitoring company, to monitor user traffic on their websites. The companies' contracts prohibited Pharmatrak from
