New Jersey Drops Investigation Into Tidbit, Settles Case

The New Jersey Office of Attorney General dropped its investigation of Tidbit, said a consent order filed Tuesday in Essex County Superior Court in New Jersey. Tidbit was a project of four Massachusetts Institute of Technology students who developed the software for a hackathon in November 2013. The software was envisioned as a substitute for website advertisements, allowing sites to instead monetize visits by using visitors’ computers to mine for bitcoins. Tidbit’s developer is prohibited from accessing or attempting to access New Jerseyans’ computers without clearly and conspicuously notifying the owners and obtaining their verifiable consent, the order said. The consent order also includes a $25,000 settlement that will be suspended and automatically vacated within two years, provided the software developer complies with the settlement terms. “We do not believe Tidbit was created for the purpose of invading privacy,” said Division of Consumer Affairs Acting Director Steve Lee in a news release. “However, this potentially invasive software raised significant questions about user privacy and the ability to gain access to and potentially damage privately owned computers without the owners’ knowledge and consent. As privacy threats become more and more sophisticated, State law requires us to protect the interests and safety of New Jersey consumers.”