Homeplus Executives Accused of Selling Customers Data to an Insurance Company

I am surprised this is actually considered illegal:

Image via Flickr user AnsanAnswers.

The former and current executives of Homeplus, the local discount chain owned by U.K. retailer Tesco, were slapped with a travel ban yesterday over allegations that customers’ personal information collected during in-store prize giveaways was sold to insurance companies.

The revelation dealt a further blow to the chain that is already beset by strained relations with its union, slumping sales and a separate scandal surrounding a giveaway event.

A joint investigation team of prosecutors and the government imposed travel bans on Lee Seung-han, the former CEO, and incumbent Do Sung-hwan, alleging that top-management involvement led to the sale of personal data.

The investigation team specializing in personal data leak cases said the retailer allegedly collected data from 2.5 million people over the past five years through registration forms for prize giveaways and sold it for about 4,000 won ($3.80) per person to multiple insurance companies.

Authorities say Homeplus may have pocketed a total of 10 billion won from the sales.  [Joong Ang Ilbo]

You can read more at the link, but this is basically what Facebook does selling people’s data to advertisers and most people do not even realize it.  What probably is illegal about what Homeplus did was that they did not have a disclaimer to warn the customers their data may be used to be sold to advertisers.  The fact that the raffel was also tampered with to select an employee’s friend to win a BMW is also very shady.