New York State Sues Free iPods Site

Calling the case the largest intentional breach of Internet privacy ever, New York Attorney General Eliot Spitzer has sued Gratis Internet for selling personal data on millions of consumers who signed up to receive a free iPod music player by referring friends.

Gratis runs a number of such sites, including FreeiPods.com, FreeCDs.com, FreeDVDs.com and FreeVideoGames.com. The company promises not to share user data, but Spitzer says it sold 7 million e-mail addresses to three companies, leading to millions of unsolicited messages. The lawsuit specifically accuses Gratis owners Peter Martin and Robert Jewell of fraud and privacy violations during 2004 and 2005.