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4/26/2004
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FTC Spanks Tower

Tower Records agreed to settle charges from the Federal Trade Commission that a flaw in its online checkout system exposed customer information, violating the company's security and privacy policies. According to the FTC, the security hole allowed others to possibly view the order histories, names, billing and shipping addresses, E-mail addresses, and phone numbers of Tower customers. The settlement requires that Tower maintain an appropriate security program and its Web site be audited every two years for a period of 10 years.

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