'E-mart, Lotte Mart sold consumer data'

‘Consumer data sale wasn’t just case of Home plus’

By Jung Min-ho

A civic group claimed Tuesday that E-mart and Lotte Mart illegally sold customers’ personal information to insurance firms alongside Home plus, which has already been accused of doing the same.

In a complaint filed with the Seoul Central District Prosecutor’s Office, the Seoul YMCA said, “E-mart and Lotte Mart sold information on millions of their customers after collecting it through giveaway events.”

The prosecution is expected to soon launch an investigation into the claims.

The complaint came after Rep. Chun Soon-ok of the main opposition New Politics Alliance for Democracy found out about their alleged misdeeds in October.

According to data Chun obtained from Lotte Mart, the company pocketed 2.3 billion won ($2.6 million) by selling the personal data of 2.5 million customers to insurance companies including LINA Korea and Shinhan Life Insurance from June 2009 to February 2014.

E-mart also received 6.6 billion won from insurance companies in exchange for handing over the personal information of 3.1 million customers from September 2012 to December 2013, Chun said.

The YMCA said the companies often held free giveaway events to collect the personal data of the participants, including their names, phone numbers, addresses, ages and whether they are married. The YMCA said the companies failed to explain about how the information would be used.

It also urged prosecutors to conduct a thorough investigation into the insurance companies that allegedly conspired with the chains to violate the Personal Information Law.

Mirae Asset Life Insurance has already admitted it used personal data for an average of 1.5 million people annually over the past five years, which it received from Lotte Mart.

E-mart and Lotte Mart fear that the allegations will cause boycotts of their businesses.

The accusations come at a time when another supermarket chain, Home plus, has been embroiled in similar controversy.

Earlier this month, prosecutors indicted six former and incumbent Home plus executives, including current CEO Do Sung-hwan, without physical detention on charges of violating the law on personal information protection.

The company allegedly collected private information on 7.12 million people through 11 lottery events from 2011 to July 2014, and sold that information to seven insurance firms for 14.8 billion won.

Soon thereafter, 152 consumers filed a collective lawsuit against Home plus.

Yeyul, a law firm representing them, submitted a complaint to the Seoul Central District Court seeking a combined 45.6 million won in compensation for mental and financial damages. Each client is demanding 300,000 won.