Tuesday, October 26, 2010

Stephens Praises Decision by Federal Judge for Siding with Privacy in Amazon.com Lawsuit

State Rep. Amy Stephens, R-Monument, today praised the decision by U.S. District Judge Marsha J. Pechman, of the Ninth Circuit Court of Appeals, for her ruling against the North Carolina Department of Revenue in their demand for private information detailing customer purchases from Amazon.com for the purposes of internet sales tax collection.

“Judge Pechman today ruled in favor of Amazon.com and their right to protect the privacy and purchase information of their customers,” Stephens said. “I will continue to fight to protect Colorado consumers from the same invasion of purchase and privacy information we face as a result of the internet sales tax law (aka Amazon.com) being implemented here at home. It is my hope that the Colorado law, House Bill 1193, will be overturned by the courts as well.”

Similar to a recent law adopted in Colorado, the North Carolina Department of Revenue demanded detailed information from Amazon.com on the purchases made by North Carolina residents. Amazon.com’s lawyers argued that the request threatened the constitutional free speech and privacy rights of consumers by asking for names and detailed purchase information of online shoppers.

“I feel very strongly that the level of detail being requested by our own Colorado Department of Revenue violates privacy and goes far beyond the comfort level of many Coloradans,” Stephens said. “Coloradans should be free to make online purchases without government looking over their shoulder. I am pleased that Amazon.com has stood up for the protection of consumer privacy in North Carolina and am hopeful that Colorado tax collectors will take notice of this case as well.”

The Colorado law, arising out of House Bill 10-1193, requires Amazon.com and other internet retailers to notify consumers of the sales and use taxes accrued from their annual online purchases. Internet retailers are then asked to provide a detailed list of consumers’ names and purchases to the Colorado Department of Revenue. Similar to the North Carolina case, Amazon.com and Stephens have argued that requiring a retailer to provide detailed information related to customer transactions violates their purchase and privacy rights.

The Colorado law is currently being challenged by the Direct Marketers Association of which Amazon.com is a member. Stephens says this latest court ruling should serve as a reminder to policymakers that you cannot sacrifice the freedoms of citizens to balance the state budget.

The ruling can be viewed online here.