CNET has an article describing some of the details of the case. They also point out similar situations that have been struck down across the country (albeit, these deal with books, DVDs, and other media that have enjoyed special privacy protections):


In a 2002 decision,
the Colorado Supreme Court ruled that the First Amendment protects “an
individual’s fundamental right to purchase books anonymously, free from
governmental interference.”

And in a 2007 case,
federal prosecutors tried unsuccessfully to force Amazon to identify
thousands of innocent customers who bought books online, but abandoned
the idea after a judge rebuked them. Judge Stephen Crocker in Wisconsin
ruled that “the subpoena is troubling because it permits the government
to peek into the reading habits of specific individuals without their
prior knowledge or permission.”


In addition, a federal law called the Video Privacy Protection Act makes it illegal for anyone selling movies to disclose customer information to anyone, including state tax collectors.

I must agree with Amazon spokesperson Mary Osako who says, “The best-case scenario for customers would be where the North Carolina
Department of Revenue withdraws their demand because they recognize
that it violates the privacy rights of North Carolina residents.”