From Reuters: "Barnes & Noble rejected the consent requirement as 'completely unrealistic.' The retailer proposed narrowing the recommendations to allow it to use its own privacy policy to govern the customers, which it said provides as much protection as Borders' policy, if not more."

The Federal Trade Commission has weighed in on the matter, saying in a letter to St. Patrick Baxter's office that recommended that any transfer of personal information in connection with a bankruptcy sale take place only with consent of Border's customers or with significant restrictions on the transfer and use of the information.

The argument will be played out outside court in all likelihood.

Meanwhile, Network World's that in November 2009 the European Parliament approved a directive on Internet privacy that, among other things, required user opt-in before websites could install cookies on the user's computer.

In theory, any U.S. company running a website that may be used by any citizen of any European Union country would have to follow the rules or risk being brought up on charges by an EU country.