North Carolina Agrees To Stop Asking For Names Of E-Commerce Purchasers

To resolve a privacy lawsuit brought by Amazon and the ACLU, the state of North Carolina has agreed to stop asking all e-commerce sites for information about state residents who have made online purchases.

The move comes several months after Amazon and seven state residents convinced a federal judge in Seattle that North Carolina's request violated residents' free speech rights to purchase books and movies anonymously. Last October, a federal judge issued a ruling that sweepingly vindicated online purchasers' First Amendment rights. "The [Department of Revenue] concedes that it has no legitimate need or use for having details as to North Carolina Amazon customers' literary, music, and film purchases," the judge wrote. "With no compelling need for both sets of information, the DOR's request runs afoul of the First Amendment." The settlement, which was quietly entered late last month, is even broader than the judge's decision because the settlement affects Web users who have made purchases at all e-commerce companies, not only Amazon. The ACLU calls the settlement "a great win for privacy."