Daily updates on privacy stories in the news.

April 2001 Archives

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MS Tracking PCs Purchased Without Windows

Microsoft has begun a pilot program to track companies that purchase computers without the Windows operating system. Microsoft awards points to system builders who forward orders for computers without Windows to Microsoft. The points are redeemable for prizes.

Microsoft: Prizes for Rat Finks, Aaxnet, April 25, 2001.
MS Wants To Know Whose PC Is Windows-Free, Slashdot, April 30, 2001.

Amazon Privacy Settlement Approved by Judge

A federal judge has approved a settlement regarding Amazon.com�s Alexa service, which includes a program that can track users� online movements to provide links to services and products. The plaintiffs in the suit alleged that Alexa illegally collected personal data in violation of federal statutes.

Settlement of Data-Collection Lawsuit Receives Preliminary Approval by Judge, Wall Street Journal, April 30, 2001 (subscription required).
Amazon Settles Lawsuit, Silicon Valley (Reuters), April 27, 2001.

Encryption Cannot Safeguard the Internet Alone

A panel of experts assembled at Columbia University argued that encryption technologies cannot protect privacy on the Internet with privacy protections.

Compressed Data: A Pessimistic Assessment of Privacy, New York Times, April 30, 2001 (registration required).

IBM Blue Eyes Monitors Customers

IBM has developed a customer tracking system that monitors eye movements and facial expressions to gauge product desire and marketing effectiveness.

Behind BlueEyes, Techreview, May 2001.
Big Blue's Big Blue Eyes Are Watching You, Slashdot, April 28, 2001.
IBM Blue Eyes Home Page.

Cybercrime Funding Increased

The fiscal year 2002 Department of Justice budget will include increased appropriations for fighting cybercrime. DOJ will receive $33 million more in funding, with the majority dedicated to anti-encryption efforts and digital evidence preservation.

Cyber Crime, Tech Law Journal Daily Report, April 27, 2001.

FTC Pursues Purchasers of Illegally-Obtained Info

Last week, the Federal Trade Commission brought cases against three companies that obtained individuals� financial information illegally through pretexting. The FTC is now pursuing the purchasers of the information gained illegally. Purchasers of the information included Bank One, State Farm Insurance, and various law firms.

FTC's Probe Of Data Brokers Turns to Clients, Washington Post, April 26, 2001.

Retailers Collecting Shoppers� E-Mail

Increasingly, retail sales stores have collected customers� e-mail addresses to conduct marketing. Data marketers are attempting to link off-line purchases with online personalities to build more comprehensive profiles of consumers.

E-Mail Becomes Marketing Treasure For Retailers, Washington Post, April 26, 2001.

COE Cybercrime Treaty Approved by Assembly

A parliamentary assembly has approved the Council of Europe Cybercrime treaty. The treaty will now return to committee for final drafting. As written, the treaty expands police powers and requires Internet Service Providers to retain records to aid law enforcement investigations. The final draft may also include language prohibiting the transmission of hate speech on the Internet.

Draft COE Cybercrime Treaty, COE Web Site.
Racism ban urged for cybercrime treaty, CNET (Reuters), April 25, 2001.
Cybercrime treaty a step closer to becoming law, Infoworld, April 25, 2001.
Does the U.S. spy too much?, Salon, April 26, 2001.

AMA Survey Shows Increase in Employee Monitoring

An American Management Association annual survey reports that 78% of major companies engage in workplace monitoring, an increase of 4% over last year. A related report by the Privacy Foundation details trends in workplace surveillance.

2001 AMA Survey: Workplace Monitoring & Surveillance, AMA Web Site.
More Companies Watching Employees, American Management Association Press Release, April 18, 2001.
Workplace Surveillance: the Tracking, the Money and the Law, Privacy Foundation Report.
Your boss knows you're reading this, ZDNet (Reuters), May 29, 2001.
Companies keeping watch over their employees, Siliconvalley.com (Reuters), June 9, 2001.

NAAG Meeting Focuses on Privacy

The National Association of Attorneys General (NAAG) meeting in Cambridge has focused on Internet privacy issues. Republican Senator Richard Shelby (AL) spoke at the conference, advocating strong federal privacy legislation that allows states to pass even tougher laws.

Privacy tops agenda at Net symposium, Boston Globe, April 24, 2001.

SDMI Attempts to Suppress Circumvention Paper

The Secure Digital Music Initiative (SDMI) is threatening a suit against a Princeton University Professor for publishing a paper exposing weaknesses in watermark technology. Digital rights management (DRM) systems, such as SDMI and copyright protection for removable media (CPRM) often invade privacy by requiring a purchasers of electronic content to identify themselves and their rights to access the file.

RIAA Attacks SDMI Challenge, Cryptome.org, April 20, 2001.
DMCA and SDMI, Tech Law Journal Daily Report, April 24, 2001.
Record Panel Threatens Researcher With Lawsuit, New York Times, April 24, 2001 (registration required).
Copyright Clash Shutters Speech, Wired, May 2, 2001.
The SDMI, the RIAA and industry lawyers better get something straight: preventing piracy doesn't mean you can punish researchers, The Standard, May 4, 2001.
Professor warns of threat to free speech, CNET, May 17, 2001.
Code-Breakers Go to Court, Wired, June 6, 2001.
Digital-Music Code Crackers Tell All, Washington Post, August 16, 2001.

Law Review Article Addresses Spam

Professor David Sorkin has published a law review article on spam. The article discusses the difficulty in defining spam, failed self-regulatory attempts to curb spam, and possible legal and technical solutions to address the spam problem.

Technical and Legal Approaches to Unsolicited Electronic Mail, David E. Sorkin, University of San Francisco Law Review, 2001.

TILJ on E-SIGN, PGP, Opt-In, and CPRM

The Internet Law Journal has published its April 2001 issue online. Topics include E-SIGN (Electronic Signatures), Pretty Good Privacy, the opt-in and opt-out debate, and content protection for removable media (CPRM).

E-SIGN and State Electronic Signature Laws: What Comes Home in The Sea of Legislation?, TILJ, April 2001.
Just how good is Pretty Good Privacy (PGP)?, TILJ, April 2001.
Industry Wants to Opt Out of "Opt-In", TILJ, April 2001.
IBM Backs Away from CPRM on Hard Drives, Focuses on Portable Media, TILJ, April 2001.

Court Protects Anonymous Speech

A federal court in Washington has denied the request of an Internet company to learn the names of persons who anonymously criticized it in a chat room discussion. The court held that the company had not provided sufficient evidence to overcome the posters� First Amendment rights.

Court ruling big win for Net privacy, Seattle Times, April 20, 2001.

Privacy Advocates Meet with Attorney General

Privacy advocates met with Attorney General John Ashcroft yesterday to discuss law enforcement surveillance. The chief topic of discussion was Carnivore, the police Internet surveillance tool which has been employed at least 25 times to monitor people. Attorney General Ashcroft reportedly has not taken a stand on Carnivore.

Privacy advocates confront attorney general, Nandotimes (AP), April 19, 2001.

FTC Settles Three COPPA Cases

The Federal Trade Commission has settled three cases against web sites that violated children�s privacy, and ran afoul of the Children�s Online Privacy Protection Act. The three sites were illegally collecting personally identifying information from children. The three site operators have agreed to pay $100,000 in civil penalties for the violations and erase all personally identifying information collected since the COPPA rule was put into effect.

FTC Announces Settlements with Web Sites That Collected Children's Personal Data Without Parental Permission, FTC Press Release, FTC Web Site.
The Value Of Privacy, Slashdot, April 19, 2001.
FTC cracks down on kid's privacy offenders, ZDNet, April 19, 2001.
FTC Sues to Stop Gathering of Personal Data, The Standard (Computer World), April 19, 2001.

CME Releases Report on COPPA Compliance

The Center for Media Education has released a report showing that the Children�s Online Privacy Protection Act of 1998 has limited manipulative business practices. However, protecting children�s privacy online could be improved by promoting clear and prominent privacy policies, limiting the amount of information collected, allowing anonymous registration, and by increasing compliance with parental consent requirements.

Children's Online Privacy Protection Act (COPPA) - The First Year, CME Report, CME Web Site.

Dutch Government Considers Information Safes

A recent commission proposal advocates the creation of digital safe deposit boxes for Dutch citizens. Citizens, government, and law enforcement would have access to the register of information. Citizens would also be encouraged to store their medical and financial information in the register.

Dutch Propose Digital Information Safes, Slashdot, April 19, 2001.
Digital Safe-Deposit for Dutch Citizens, Telepolis, April 17, 2001.

FTC Prosecutes Pretexters

The Federal Trade Commission has filed three lawsuits to stop information brokers from illegally obtaining privacy financial information through "pretexting." Pretexting is the use of false pretenses, fraudulent statements, or impersonation to obtain financial information of another person.

As Part of "Operation Detect Pretext" FTC Sues to Halt "Pretexting", FTC Press Release, FTC Web Site, April 18, 2001.
Pretexting: Your Personal Information Revealed, FTC Consumer Alert, FTC Web Site.
Three Charged With Selling Confidential Data in FTC Sting, Washington Post, April 19, 2001.
Pretexting, Tech Law Journal Daily Report, April 19, 2001.
FTC v. Guzzetta d/b/a Smart Data Systems, FTC Complaint, FTC Web Site.
FTC v. Information Search Inc. and David Kacala, FTC Complaint, FTC Web Site.
FTC v. Garrett, FTC Complaint, FTC Web Site.
, Washington Post, May 4, 2001.

Advocate Crusades Against Spam

This story details the activities of David Ritz, a crusader against unsolicited commercial e-mail. Ritz is one of a number of activists that attempt to free the net from spam, especially as the unwelcome e-mail clogs Usenet groups.

Lone Guns Set Sites on Spam, Los Angeles Times, April 16, 2001.
I Won a Lawsuit Against a Spammer, Slashdot, April 18, 2001.
Spertus vs. Kozmo.com, Spertus.com.
Small claims court becomes spam battlefield, CNET, April 23, 2001.

Government Web Sites Still Using Cookies

Preliminary results from a congressional report shows that government web sites are still employing cookies, contrary to a Clinton administration rule banning the practice. The report examines 16 agencies, and shows that 64 federal web sites plant cookies on users� hard drives. The report is being conducted by the Inspector General Office.

Thompson: Preliminary Reports Reveal Continued Agency Violations of Administration Privacy Policies, Thompson Press Release, Senator Thompson Web Site, April 16, 2001.
Preliminary Findings from Inspector General Reports, Senator Thompson Web Site.
Memorandum for the Heads of Executive Departments and Agnecies, OMB Memo, White House Web Site, June 22, 2000.
Report: Online privacy not protected, Nandotimes (AP), April 16, 2001.
Senator Raises Privacy as Federal Web Site Issue, New York Times, April 17, 2001 (registration required).
Report: Feds do poor job following privacy rules, CNN (AP), June 18, 2001.

FTC Trumps Trans Union in Credit Report Marketing Case

An appeals court has upheld an FTC order compelling Trans Union to stop using consumer report data for marketing. Trans Union, one of the major credit reporting agencies, was selling targeted marketing lists of persons who recently received automobile loans, mortgages, and credit cards. The company claimed a First Amendment right in using this information for marketing purposes.

Trans Union v. FTC, PACER.
Financial Privacy, Tech Law Journal Daily Report, April 16, 2001.
Credit Firm Told to Stop Selling Data, Washington Post, April 17, 2001.

Microsoft .Net Proposal Draws Fire

Microsoft�s .Net system calls for consumers to store their data in a central database on the company�s computers. While Microsoft has urged consumers to trust their data with the company, Microsoft has lobbied against privacy legislation that would extend consumers rights in law.

In Microsoft Do You Trust?, Interactive Week, April 16, 2001.

Government Purchasing Personal Info from Private Sector

The FBI, IRS, and numerous other agencies are purchasing personal information from private-sector brokers such as Choicepoint and Lexis-Nexis. The information includes personal assets, aliases, birthdate, social security number, addresses, driving records, phone numbers, and other information. Government agencies purchase this information from outside sources in order to evade internal policies and the Privacy Act of 1974.

FBI turns to private sector for data, MSNBC.com (WSJ), April 13, 2001.
FBI's Reliance on the Private Sector Has Raised Some Privacy Concerns, Wall Street Journal, April 13, 2001 (subscription required).
How Choicepoint serves up your personal info to the FBI, Declan McCullagh's politechbot.com, April 13, 2001.
ChoicePoint Online for the FBI, Choicepoint Web Site.
Choicepoint Online for the INS, Choicepoint Web Site.
Choicepoint Online for HUD, Choicepoint Web Site.
Choicepoint Online for the Government, Choicepoint Web Site.

HHS Will Implement Health Privacy Regulations

The Department of Health and Human Services (HHS) has announced that federal health privacy regulations will take effect on April 14, 2001, as previously scheduled. Previous reports indicated that HHS Secretary Thompson would delay or weaken the protections. Instead, changes in the regulation will be made after its implementation.

President Bush's Statement on HIPAA Medical Privacy Regulations, White House Web Site, April 12, 2001.
Statement by HHS Secretary Tommy G. Thompson Regarding the Patient Privacy Rule, HHS Web Site, April 12, 2001.
Medical Privacy Rules to Take Effect, CNN.com, April 12, 2001.
Bush Won't Delay Medical-Privacy Rules, New York Times, April 12, 2001 (registration required).
Privacy Coalition Letter to HHS Secretary Tommy Thompson, Privacy Coalition Web Site.
Text of Medical Privacy Regulations, HHS OCR Web Site.
Health Privacy Project Web Site.

Amtrak Sharing Rider Information, Profit from Seizures, with DEA

Amtrak is providing the DEA with ticketing information about passengers in an effort to stem the flow of illegal drugs. DEA agents have direct access to an Amtrak computer that contains information on passenger names, origination points, destinations, and payment information. In exchange for access to the database, Amtrak receives 10% of whatever seizures the DEA makes using the information.

Amtrak Helps DEA Hunt Drug Couriers, Albuquerque Journal, April 11, 2001.
Amtrak shares passenger info with DEA for drug prosecutions, Declan McCullagh's politechbot.com, April 11, 2001.
Your Rights Online: Keeping DEA In The Loop About Amtrak Travelers, Slashdot, April 15, 2001.
Amtrak 'Sharing' Information With D.E.A., New York Times, April 15, 2001 (registration required).

Truste: Companies in Flux Should Hire Privacy Auditor

Truste, an industry privacy group, announced that companies undergoing a merger, acquisition, or bankruptcy should hire an auditor to prevent violations of privacy policies.

TRUSTe Guidelines on Personally Identifiable Information Uses in Mergers, Acquisitions, Bankruptcies, Closures, and Dissolutions of Web Sites, Truste Web Site.
Firms In Flux Should Seek Outside Privacy Counsel, Group Says, Newsbytes, April 11, 2001.

More Privacy Legislation Introduced

To date, over forty bills have been introduced in the US Congress that implicate privacy issues. The bills cover computer security, online privacy, medical privacy, use of social security numbers, student privacy, telemarketing, fair credit practices, and spyware. Privacy legislation, thus far, has been a bi-partisan effort, as both parties have introduced over twenty bills.

EPIC Bill Track, EPIC Web Site.

EPIC Responds to Armey Letter

Majority leader Armey sent a letter to Congress yesterday urging legislators to "go slow" on privacy, and to focus on governmental invasions of privacy before exploring private-sector abuses. EPIC has responded to Representative Armey's letter, and challenged him to continue a strong American tradition of protecting individuals from both governmental and private sector invasions of privacy. The EPIC letter sets out specific areas in which citizens� privacy could be further protected from governmental actions.

Privacy: For those Who Live in Glass Houses, Majority Leader Armey Letter on Privacy, Armey Web Site.
EPIC Responds to Armey, EPIC Letter, EPIC Web Site.
Privacy, Tech Law Journal Daily Report, April 10, 2001.
Congress Should Focus On Govt. And Consumer Privacy � EPIC, Newsbytes, April 10, 2001.

ACLU Privacy Campaign Highlights Government Eavesdropping

A new ACLU campaign has emphasized government surveillance of personal communications. In advertisements printed in major publications, ACLU warns that the government is increasingly engaging in unwarranted surveillance in violation of the Fourth Amendment.

New ACLU Advertisement Highlights Massive U.S. Government Electronic Surveillance, ACLU Web Site.

Study: Opt-Out Notices Unreadable to Most

A study conducted by Mark Hochhauser, a readability consultant, found that most opt-out notices contained in financial statements are written at a college reading level. The notices analyzed are required by the Financial Services Modernization Act (GLBA), a law that allows individuals to opt-out from certain information sharing

Lost in the Fine Print: Readability of Financial Privacy Notices, Privacy Rights Clearinghouse Web Site.
Financial Privacy in the New Millennium: The Burden Is on You, Fact Sheet, Privacy Rights Clearinghouse Web Site.
Financial Privacy: How to Read Your "Opt-Out" Notices, Fact Sheet, Privacy Rights Clearinghouse Web Site.
Getting a Handle on Privacy's Fine Print, Financial Firms' Policy Notices Aren't Always Clear and Conspicuous, as Law Requires, Washington Post, June 17, 2001.

Armey to Congress: Go Slow on Privacy

Republican leader Dick Armey (R-TX) has urged fellow legislators to retard progress on privacy legislation. Armey wrote that the new economy could be endangered by privacy protections.

Fears on Privacy Law Spur Warning by Armey, New York Times, April 9, 2001 (registration required).

Bush Administration to Revise Medical Privacy Regulations

The Bush Administration has decided to revise medical privacy regulations issued in the last weeks of the Clinton Administration. The regulations would have given patients a number of rights, including notice, consent, access, redress, and enforcement.

White House Plans to Revise New Medical Privacy Rules, New York Times, April 8, 2001 (registration required).

Police Attempt to Gain Access to Book Lists

This article in the New York Times details police efforts to obtain book sales records at the Tattered Cover bookstore in Denver, Colorado. Increasingly, police have attempted to gain access to book lists in order to tie criminal suspects with crimes. Such practices can have a chilling effect on freedom to read and research.

Using Books as Evidence Against Their Readers, New York Times, April 8, 2001 (registration required).

Survey: Americans Want Access and Privacy

A study conducted by the First Amendment Center and the American Society of Newspaper Editors found that Americans are in favor of robust access to public files. However, a majority of the respondents support increasing privacy protections, even if the protections burden journalists from accessing public information.

Americans concerned about personal information privacy, SiliconValley.com (AP), April 6, 2001.

Federal Computers Experience Security Breaches

Federal officials testifying at a House subcommittee hearing said that cyber vandals increasingly are successful in gaining access to government computers. Thirty-two agencies reported that cyber vandals took control over 155 computers in the last year.

Officials: Federal systems increasingly falling prey to hackers, Computerworld, April 5, 2001.

Bush Won�t Appoint Privacy Czar

President Bush has decided not to appoint a privacy adviser, according to a policy analyst at the Office of Management and Budget.

Bush won�t have privacy czar, Federal Computer Week, April 6, 2001.
Bush makes key privacy decision, Computerworld, April 16, 2001.

House Subcommittee Holds Privacy Hearing

The House Commerce Subcommittee on Commerce, Trade, and Consumer Protection held a hearing on federal statutes addressing information privacy. The committee heard testimony on Customer Proprietary Network Information, the GLBA, the FCRA, and TiVo. The Tech Law Journal has links to the broadcast of the hearing, and the written testimony of the speakers.

Privacy Hearing, Tech Law Journal Daily Report, April 4, 2001.

City Sues to Block Web Site with Officers� Information

A city in Washington State has sued a web site operator for posting the home addresses, phone numbers, salaries, and social security numbers of police officers. The city is considering legislation to increase privacy protection for city employees.

Kirkland sues over Web site listing officers' personal details, Seattle Times, April 3, 2001.
Justice Files, web site with officers' personal information.

State DoubleClick Litigation Still Pending

A suit alleging that DoubleClick improperly collected information from Internet users is still pending in California, despite the recent dismissal of a similar federal case. The attorney in the California case, Ira Rothken, alleges that DoubleClick combined data from its online tracking with an offline marketing database.

Lawyer says California suit against DoubleClick alive and well, SiliconValley.com (AP), April 3, 2001.

Study: 62% Favor Online Privacy Legislation

A new study released by the Pew Internet and American Life Project reports that 62% of respondents favor legislation to protect online privacy.

Opinion Split on Web Privacy, Seemingly Contradictory Results Show Lawmakers' Problem, Washington Post, April 3, 2001.

Legislators Urge FTC to Investigate TiVo

Representatives Dingell (D-MI), Towns (D-NY), and Markey (D-MA), have urged the FTC to investigate TiVo for unfair or deceptive trade practices. TiVo manufactures personal video recorders which collect information on customers� viewing habits.

Dingell, Towns, Markey letter to the FTC, House Commerce Democrats Web Site.
TiVo�s Data Collection and Privacy Practices, Privacy Foundation Report.
Privacy, Tech Law Journal Daily Report, April 3, 2001.

CPRM Rejected By Standards Body

A standards setting body rejected plans to include Content Protection for Recordable Media (CPRM) directly into computer hardware. Such technology invades individuals� privacy, as users are typically required the authenticate ownership or gain permission before accessing files protected by CPRM.

Anti-piracy plans for hardware fail, CNET, April 2, 2001.

CVS Privacy Case Granted Class Status

Plaintiffs who have brought suit against CVS for selling customers� prescription and medical data have been granted class status by a New York court. The case is Anonymous v. CVS Corp, 604804/99.

New York Court Certifies Class in Privacy Suit Against CVS Pharmacy, New York Law Journal, April 2, 2001 (cookies required).

EBay Weakens its Privacy Policy

EBay, the online auction site, has altered its privacy policy to allow the transfer customer data if the company is bought or merges with another company.

EBay Changes Customer Privacy Policy, New York Times (AP), April 2, 2001 (registration required).
EBay Alters Privacy Policy, Wired, April 2, 2001.

Passport Users Give Data to Microsoft, Business Partners

The terms of use agreement for Passport services gives Microsoft and its business partners rights in users� data. These rights include the ability to use, modify, copy, distribute, and sell information transmitted on Hotmail and MSN Messenger accounts.

All your data (and biz plans) are belong to Microsoft, The Register, March 30, 2001.
Privacy terms revised for Microsoft Passport, CNET, April 4, 2001.