The latest lawsuit over online tracking was filed against KISSmetrics, a company that utilizes ETags to track visitors to Web sites.

The California-based plaintiffs alleged that the tracking violates consumer privacy rights, and they named additional defendants including Hulu, Spotify, and iVillage, sites that worked with KISSmetrics.

The suit claims that the defendants violated state and federal laws by using ETags that track consumers even after they delete cookies from their computers.

“While it is generally reasonable to expect a website to use cookies for tracking, the website defendants and KISSmetrics created numerous, alternative, ‘shadow’ mechanisms for tracking; defendants engaged in tracking by exploiting. . .class members’ browsers and other software in ways that consumers did not reasonably expect,” according to the complaint.

Specifically, the defendants repurposed user browser cache of users’ browser software and Adobe Flash LSOs to store information, the suit contends.

The plaintiffs maintain that their information is a personal asset to which online third parties have no presumptive right of access. They further argue that loss of such information lessened the economic value of their information, reduced the performance of their computers (which were slower to load while the transfer of information occurred), and violated their privacy rights.

In addition to injunctive relief, the suit seeks statutory damages of $10,000 per individual under the Electronic Communications Privacy Act.

To read the complaint in Kim v. Space Pencil, click here.

Why it matters: KISSmetrics CEO Hiten Shah told MediaPost he was “blindsided” by the allegations against the company and noted that courts have “repeatedly held” that similar claims against other defendants “have no merit.” However, the company revised its privacy policy after the complaint was filed. According to the new policy, the company will not track users who delete cookies or otherwise indicate their intention not to be tracked.