User profiles from the now-defunct XY magazine, which catered to gay teens, are at the center of a serious privacy controversy. Declan McCullagh reports, "In February 2010, XY founding editor Peter Ian Cummings filed a personal bankruptcy petition in federal court[…]. The only significant asset Cummings listed is the 'customer list, personal data, and editorial and back issue files of XY Mag and XY.com.' Cummings says he believes that giving the information to his creditors violates California privacy law and the FTC Act, which prohibits deceptive business practices."
Nevertheless, creditors want this information collected, potentially violating the privacy of up to 1 million gay or questioning teens who subscribed to XY.com. Revealing their information could out them to parents or others. While the question of what to do with a bankrupt Internet company is not new, this is the first time data as sensitive as identifiable details of GLBTQ youth is up for grabs to the highest bidder.