Chitika

The FTC alerted Chitika to the problem in February 2010 and since March 1, 2010, its opt-out tool has allowed consumers to decide not to be tracked or targeted for 10 years, the company said.

FTC Sanctions Online Firm That Tracks Users Emily Steel 2011

Chitika says its opt-out was mistakenly set to expire after 10 days, rather than an intended 10 years.

FTC Sanctions Online Firm That Tracks Users Emily Steel 2011

Chitika also must destroy identifiable user data collected about consumers who had signed up to the defective opt-out and alert consumers who previously tried to opt out that their actions weren't effective.

FTC Sanctions Online Firm That Tracks Users Emily Steel 2011

Chitika is one of hundreds of companies that collect, sell and use online-tracking information about Web surfers.

FTC Sanctions Online Firm That Tracks Users Emily Steel 2011

"We have always placed the utmost importance on the privacy of online users, and we believe this agreement will help us continue to place a premium on privacy as our advertising network continues to expand," Chitika said.

FTC Sanctions Online Firm That Tracks Users Emily Steel 2011

In its first major sanction over the fast-growing business of tracking Internet users, the Federal Trade Commission has reached a settlement with online-ad company Chitika Inc. over its extremely short-lived "opt-out" settings.

FTC Sanctions Online Firm That Tracks Users Emily Steel 2011

People who wanted to avoid being tracked and targeted further would have to go through Chitika's opt-out process again.

FTC Sanctions Online Firm That Tracks Users Emily Steel 2011

Marketing and advertising firm Chitika, in Westborough, Mass., analyzed traffic generated by major social networks, including Myspace and Digg.

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After the 10-days, Chitika would resume tracking, the FTC said.

FTC Sanctions Online Firm That Tracks Users Emily Steel 2011

The FTC found that Chitika's tool for letting Internet users opt out of being tracked and targeted online was set to last only 10 days—a practice the FTC described as deceptive and a violation of federal law.

FTC Sanctions Online Firm That Tracks Users Emily Steel 2011