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Web measurement company Quantcast and widget maker Clearspring have agreed to settle two class action lawsuits alleging they violated people’s online privacy by using Flash cookies to track their information. The majority of the $2.4 million settlement – which still awaits court approval – will go toward privacy organizations.
The Quantcast Clearspring class action settlement deal will resolve complaints filed this summer that accused the two companies and several others of using Flash cookies to collect and store web users’ personally identifiable information, such as names or addresses.
Flash cookies remain stored on users’ computers even after they direct their browsers to delete cookies, which track what websites people have visited. Flash cookies can be deleted through other means, such as using Adobe’s online controls, but very few consumers are aware that Flash cookies even exist.
Flash cookies have been used as far back as 2005 but only recently appeared on privacy advocates’ radar last year after a University of California, Berkeley study published a report outlining how Web companies can recreate deleted HTTP cookies with Flash cookies, circumventing consumers’ attempts to avoid tracking. The Federal Trade Commission said they were just as concerned as privacy advocates that the technology could be used to collect data about people who thought they had opted out of online tracking.
Both Clearspring and Quantcast deny they use Flash cookies in the manner alleged in the class action lawsuits.
Clearspring previously stated that it uses Flash cookies to measure audiences for videos, widgets, music and other Flash content hosted on websites “in a manner consistent with other leading Flash analytics providers.”
Quantcast said it changed its practices regarding Flash cookies more than a year ago and no longer restores deleted cookies.
The lead plaintiffs in the Flash cookie class action lawsuit settlement will receive $1,500 each, but no other Web users will receive settlement money. The remaining money will be used to support non-profit organizations that educate consumers about online privacy.
Updated December 8th, 2010
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