There’s news today that Blockbuster is being sued by Texas resident Catherine Elaine Harris claiming that Blockbuster violated the federal Videotape Privacy Protection Act by sharing information about her movie rentals and sales with Facebook without first obtaining her written consent. Harris is seeking $2,500 in damages for each offense. This is the first lawsuit stemming from Beacon.

You may recall the Beacon operated pretty much of its own free will in sharing information about member’s buying habits without first asking for their consent. Big egg on their face that’s still being wiped off apparently. Based on the backlash it received from users and others, the social network revised its practice.

Of course, both companies PR departments are handling this in the way you might imagine. Blockbuster is denying the allegations and Facebook is saying nothing. In this day of consumer generated media, I don’t think that’s going to cut the mustard. Buzz is already starting to build around the blogosphere. TechCrunch has picked up the story (and that’s often never a good thing) as have other insiders. You can be sure we’ll hear more about this, if not from the principals, then from bloggers.

Article Tags: | Blockbuster | Facebook Beacon
Filed under: Advertising, Industry News, Technology