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This guy wants to protect your online privacy


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Taking advantage of companies' opt-out offers, however, has been complicated. In December MyPrivacy began attempting to opt its 800 initial customers out of the database of Intelius, one of the Web's largest collections of background-check data. The Bellevue, Wash. site says in its privacy policy that it will, "as a courtesy," remove any user who sends a faxed request with his or her name and address.

Fertik took the company up on its offer. He started sending hundreds of opt-out requests a month to Intelius' fax number. Intelius e-mailed asking him to stop "spamming" its fax machine. (Intelius denies this.) Fertik requested a meeting to find an easier solution. The company's representatives initially seemed responsive and later asked Fertik to send his opt-outs in a single daily e-mail. Intelius says it is unaware of this request.

Then, about a week after Intelius filed for its initial offering in early January, Fertik received an e-mail referring all further communication to William Beaver, the company's general counsel. Since then Fertik's e-mails and faxes have received no response. As far as he is able to determine, not one of his customers has been removed from Intelius' database.

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Some sites have been more responsive: Fertik says Yahoo has removed his customers from its basic people search, as has Switchboard.com, which powers the people search function for sites that include Excite.com. But, Fertik says, other sites with opt-out policies, like InfoSpace, WhoWhere.com, MetaCrawler, usa People Search and Fonecart, have ignored his requests.

Edward Petersen, an Intelius founder, says that his company doesn't accept opt-out requests from a third party.

Unlist Assist, a two-person company in Cheyenne, Wyo., offers a modest workaround. It mails its customers forms they send to data aggregators that don't accept third-party opt-outs. Using that approach, Unlist Assist has successfully opted its 2,000 or so customers out of many databases, including Intelius'.

But even then, Unlist Assist founder Eric Busby admits that the business model has limits. "Data aggregators are in the business of selling information, and they have to keep that information alive," he says. "If 100,000 people started opting out, they might change their tune."

Fertik isn't giving up. His new solution is to pay the aggregators to give up his customers' data. How much? A rough calculation shows that an information-broker giant like ChoicePoint makes at most 40 cents a month from each of its dossiers connected with an American adult. A background-check search engine likely makes far less. MyPrivacy could still make money passing along some of its $5-a-month fee as an incentive to delete its customers' data. "This is the way to avoid regulation and make more money," argues Fertik. "Because the privacy clamor is not going to stop."

There's not much in the statute books to protect people who value their privacy. A lot of states have moved their motor vehicle records out of sight, but home ownership and voter registration are wide open.

So far, no one has taken Fertik up on his payout offer. Intelius' Petersen says it sounds a bit like blackmail. "So I've got your data and I'm going to hold it hostage till you pay me five bucks?" he asks.

What Fertik wants may be impossible. Many data brokers lack any opt-out policy. There are plenty of other sites, says Petersen, that lack the ethics or resources to honor them. Fertik's cloak of invisibility? "It's not a realistic goal," says Petersen.

© 2009 Forbes.com


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