Alibris admits to spying on Amazon emails

Online bookseller, Alibris, has admitted to snooping on emails intended for Amazon.com, after Amazon accused it of deliberately collecting intelligence on the market.

Although Alibris pleaded guilty to the charges, CEO Marty Manley claimed the emails were not used for commercial profit or to breach confidential information. In a court settlement this week, the online trader paid out total damages of $250,000 - far less than originally anticipated.

Despite being rivals, Alibris owns ISP, Valinet, which services Amazon.com. Through that agreement, Amazon allowed Alibris to keep copies of over 4,000 email messages that passed between the company and its customers.

Manley has since warned other Web communications businesses that archiving clients' emails is a risky strategy, especially if they are between buyer and seller.

Ecommerce consultant, Thomas Power, said: "If copies are made to offer better service to the customer, then that's OK. Personally, I'd like it that way. But the consumer has to be asked permission. If Alibris had the permission of the customer, they should have stood their ground in court."

Alibris was not available for comment, while an Amazon.com spokesman said it was a criminal case of privacy violation in which Amazon was the victim.