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deluxegal923 Northman

Is this Item a privacy violation?

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IMO, yes.  We all agree to the Community Standards say, "Remotely monitoring conversations in Second Life, posting conversation logs, or sharing conversation logs without the participants' consent are all prohibited."  This statement in the ad for the product says .... "Remote (Grid-wide) Spying -- In this mode you can spy on targets wherever they are in the Grid provided you give them a gift to wear with a discrete spy bug. As long as they wear it, you can spy on them any where (even in no-permission parcels)."  There's a tiny bit of wiggle room, because the merchant is not telling you to give someone the "gift" without explaining what it does.  However, I think it's pretty clear what the intent is. 

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What I would suggest you do -- this is general advice given me about what to about potentially abusive items in the Marketplace by a Linden who specialises in such matters -- is go inworld, go to the merchant's shop (there's a slurl on the marketplace page) and AR it there for Incitement to Break ToS or whatever it's called.

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