Online Advertising Company Pays NJ $1 million

A New York City-based online advertising company that used hidden JavaScript code to allegedly bypass the privacy settings on consumers' web browsers has agreed to pay the New Jersey Division of Consumer Affairs $1 million under a settlement announced today.PulsePoint placed unauthorized "cookies," or small packages of data, on Apple's Safari web browsers, even though the users' privacy settings were set to specifically block them.  The unauthorized cookies enabled the company to place as many as 215 million targeted ads on web browsers used by New Jersey consumers between June 2009 and February 2012.

"PulsePoint circumvented privacy settings designed to protect consumer," said Acting Attorney General John Hoffman.  "This settlement puts online advertisers on notice that they must respect consumers' privacy settings or end up paying far more in penalties than any violations would generate in ad revenue."

The settlement includes a $566,200 civil penalty, and $250,000 for advertising services that PulsePoint will provide the Consumer Affairs Division.

“This action is part of the Division of Consumer Affairs’ commitment to protect the privacy of consumers in an increasingly complex and sophisticated digital world,” said Eric  Kanefsky, Director of the Division of Consumer Affairs.  “Online advertising is a multibillion-dollar business that is always seeking new and innovative ways to target consumers with ads that will entice them to visit retailers’ sites and make purchases.  We are here to remind advertisers and web developers that all advertising activities must respect the rights of consumers, and respect the law.”