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AOL Heads Roll Over Data Leak

August 22, 2006

AOL/America Online • AOL Pays $3 Million, Promises to Clean Up Cancellation Process • AOL Settles Florida Fraud Charges • AntiSpyware Group Targets AOL Release As Dangerous • AOL Heads Roll Over Data Leak • AOL Now Free ... Sort Of • AOL Takes More Hits In Press, On Internet • AOL's Problems Worsen as Consumer Complaints Mount • AOL Embarrassed by CNBC Report On Its Business Practices • E-Mail Taxation Without Representation • AOL, Yahoo Planning Postage Charges for Email • AOL Settles With NY, Agrees to Clean Up Cancellation Process • Ohio Settles Lawsuit With AOL • AOL Abandons Broadband • Ohio Latest to Sue AOL • AOL Loses 2 Million Clients, Faces Subpoenas • Class Action Accuses AOL of Double-Billing Scheme • AOL Offers to Settle Federal Charges --- Consumer Complaints • Cancellation Difficulties • Double-billing • "Free" Hours • Unauthorized Charges • Shop-Direct Complaints • Tech Support

Three AOL employees, including the company's chief technology officer, have been fired in the wake of the accidental release of more than 600,000 members' search records earlier this month. At the time, AOL called it "a screw up" and apologized.

While AOL released the search histories of its member, the data did not include people's names. However, privacy advocates point out that many were identifiable due to the frequency of searches that include people's names.

Adding to the uproar was the fact that many Internet users said they were not aware that records of their search activities were saved and used for other purposes.

The AOL release was just the latest in a string of data breaches by government agencies and private industry. Consumer groups and privacy advocates say it points up the increasing vulnerability of consumers' sensitive information and results in an alarming erosion of personal privacy.

AOL's CEO Jonathan Miller has made it clear that he doesn't expect AOL to get caught up in a privacy controversy again. In a memo to employees, Miller said the company would take additional steps, as needed, to prevent future breaches.

He said AOL will study a wide range of related issues, including how AOL should save data and for how long. A task force will also consider restrictions on some information and databases.

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