ACLU challenges online sales audits

CHARLOTTE, N.C., June 24 (UPI) -- The American Civil Liberties Union said North Carolina's attempt to track online purchases violates the right to privacy, court papers say.

The ACLU filed a suit that says the state's Department of Revenue audit of Amazon.com and its attempt to glean sales information from about 350 other online stores crosses the line, The Charlotte Observer reported Thursday.

The state contends the online shoppers owe 7.75 percent sales tax for their purchases.

But the ACLU says sales tax information is generally collected anonymously. "If a store is here, they'd collect the tax. The Department of Revenue wouldn't even know who the customer is," said Jennifer Rudinger, president of ACLU's North Carolina branch.

The suit was filed on behalf of Asheville, N.C., Councilman Cecil Bothwell and six anonymous consumers, one of whom purchased books about restraining orders, while others purchased books on religion and other touchy subjects, the newspaper said.

"These product descriptions reveal highly expressive and private information about consumer choices," the ACLU said in a letter to the Revenue Department last month.

Department of Revenue Secretary Kenneth Lay said in a statement, "We only ask for product type in order to determine the correct tax liability."