Hong Kong e-payment service provider Octopus Holdings has admitted to selling its customers’ personal information for a total of $5.7 million over the past four years, according to ZDNet.
Since January 2006, Octopus, which provides Hong Kong with the popular Octopus contactless smart card used on public transit and in various stores, has sold the personal data of 1.97 million customers to six companies, including Cigna Worldwide Life Insurance, says ZDNet.
Octopus had initially denied selling customer information, but quickly retracted after the Hong Kong Privacy Commission called the company up to testify at an official inquiry into Octopus’ business practices.
In light of the scandal, the Commission plans to propose a new law banning companies from selling customer data, according to Apple Daily.
Octopus CEO Prudence Chan says the company has pledged not to sell personal data to other companies in the future.
Read more here.