Daily updates on privacy stories in the news.

May 2001 Archives

« April 2001 | Main | June 2001 »

Privacy Coalition Urges New FTC Chair to Protect Privacy

Members of the Privacy Coalition have sent a letter to incoming Federal Trade Commission Chair Tim Muris urging him to take action to protect privacy.

Privacy Coalition Letter to FTC Chair Timothy Muris, Privacy Coalition Web Site, May 31, 2001.
Groups promote privacy to new FTC chair, CNET, May 30, 2001.
FTC Powerless to Protect Privacy, Wired, May 31, 2001.
F.T.C. Illustrates Regulatory Differences Under Bush, New York Times, June 12, 2001 (registration required).

Virus Detects Child Porn, Warns Police

A worm virus designed to detect child pornography and alert authorities has been circulating on the Internet. The virus scans hard drives, looking for image files with names that suggest pornographic content involving children. Upon identifying the files, the virus sends user information to police.

Worm tracks down child porn, ZDNet, May 31, 2001.
Virus Searches for Pornography, New York Times, June 11, 2001 (registration required).

Corporate Alliance Enables Easier Tracking of Users

An agreement among BayTSP, Media Enforcer, and Copyright.net is enabling the companies to engage in broader tracking of users for copyright enforcement.

If You Can't Track 'em, Join 'em, Wired, May 31, 2001.

Identity Thieves Use Info Brokers

Identity thieves typically obtain personal information about individuals by sifting though credit card solicitations in the mail or by stealing wallets and purses. Increasingly, identity thieves have employed commercial information brokers to obtain this information. By using the information brokers, they are able to obtain Social Security numbers, employment information, driving records, and other personal information.

Identity Thieves Thrive in Information Age Rise of Online Data Brokers Makes Criminal Impersonation Easier, Washington Post, May 31, 2001.
Destinations: Take back your identity, Dallas Morning News, June 14, 2001.

Amazon Alexa Service Deemed Deceptive

The Federal Trade Commission (FTC) has determined that Amazon�s Alexa service made deceptive statements about its privacy practices. The Alexa service tracked users� movements on the web and collected personal information, contrary to privacy guarantees. However, the FTC decided not to sanction the company because Amazon has revised its privacy policy to more accurately reflect the Alexa service data collection techniques.

FTC concludes Amazon/Alexa probably deceived consumers about privacy, decides to do nothing, Junkbusters Corp Web Site.
FTC: Amazon privacy practices "deceptive", Bloomberg News, May 30, 2001.
Amazon Likely Made Deceptive Statements On Privacy Policy, Federal Regulators Say, Wall Street Journal, May 30, 2001 (subscription required).

EPIC Files Complaint Against eTour.com

EPIC has sent a letter to the Federal Trade Commission and to the National Association of Attorneys General alleging that eTour.com sold personal information to a third party in violation of its privacy policy.

EPIC Letter to FTC and NAAG Regarding eTour.com, EPIC Web Site, May 25, 2001.
Privacy: EPIC Alleges Jeeves� Purchase of eTour Data Violates Law, Tech Law Journal Daily Report, May 29, 2001.

FTC Rejects Amazon Privacy Complaint

The Federal Trade Commission has rejected the requests of EPIC and Junkbusters Corp to investigate Amazon.com, a leading online bookseller. EPIC and Junkbusters Corp alleged that Amazon engaged in unfair and deceptive trade practices in December 2000 after the company changed its privacy policy. Under the old privacy policy, Amazon promised never to sell customers� data. In the revised privacy policy, Amazon reserves the right to sell customer data in the future. The FTC found that the company did not materially violate its privacy policy.

FTC Letter to EPIC and Junkbusters Corp, EPIC Web Site.
Amazon and Privacy, Junkbusters Web Site.
FTC: Amazon privacy switch didn't break law, ZDNet (Reuters), May 25, 2001.
Amazon Wins Privacy Victory, Internetnews, May 25, 2001.
FTC Clears Amazon Privacy Policy, Seattle Times, May 26, 2001.
FTC Halts Probe of Amazon, San Francisco Chronicle, May 26, 2001.
EPIC Ends Relationship with Amazon, Press Release, EPIC Web Site, September 13, 2001.

EP Writes Echelon Report

A delegation of European Parliament (EP) has written a report on the Echelon system, a surveillance program that can intercept electronic communications globally. The report asserts that the Echelon system does exist, but that media accounts of the system�s capabilities are overblown. Echelon is operated by the US, Canada, the UK, Canada, Australia, and New Zealand. Media reports alleged that Echelon was employed to steal trade secrets from European businesses, however, the report concludes that no substantiated evidence points to the use of the system for industrial espionage.

Working Paper on Echelon, European Parliament Temporary Committee on the Echelon Interception System, Cryptome Web Site.
Report Downplays Echelon Effect, Wired, May 24, 2001.
Euro Parliament calls ECHELON a paper tiger, The Register, May 24, 2001.

NAI Establishes Opt-Out Pages

The Network Advertising Initiative (NAI) has created web sites that enable Internet users to opt-out from online profiling from participating businesses. However, the site requires users to plant a cookie on their browser that will identify the computer as having opted-out.

Junkbusters criticizes banner ad companies offer of multi-tracker opt-out, Junkbusters Corp Web Site.
Web form allows people to opt out of data collection, Siliconvalley.com (AP), May 24, 2001.
Ad Industry Creates Web Sites to Allow Consumers to Opt Out of Data Collection, Wall Street Journal (AP), May 25, 2001.
Network Advertising Initiative Opt-Out, NAI Web Site (cookies required).

Ashcroft Says Anonymity Harms Law Enforcement

In a speech delivered at the Computer Privacy, Policy, and Security Institute, Attorney General John Ashcroft said that anonymity impedes law enforcement efforts. To aid police investigations, Ashcroft urged business executives to report security violations and attempts of cyber vandals to access commercial information.

Remarks of Attorney General John Ashcroft, Department of Justice Web Site.
Attorney General Complains About Net Anonymity, Newsbytes, May 23, 2001.
Aschroft warns of online anonymity, tells firms to report attacks, Declan McCullagh�s Politechbot.com, May 23, 2001.

Supreme Court to Review COPA Decision

The Supreme Court will review a lower court decision to enjoin enforcement of the Child Online Protection Act (COPA). COPA prohibited the publication of objectionable material on the Internet that is accessible to minors. EPIC and ACLU successfully blocked COPA in the federal courts, asserting that the law impinged on First Amendment rights.

Supreme Court to consider online porn law, CNN, May 21, 2001.
EPIC COPA Resources, EPIC Web Site.

Publication of Illegally Intercepted Phone Conversation Protected

In a 6-3 decision, the US Supreme Court held that the publication of an illegally-intercepted phone conversation is protected under the First Amendment. In this narrow decision, the Court held that the First Amendment protects publishers of information of legitimate public concern. However, the publisher can play no part in the interception of the communication.

Bartnicki v. Vopper, Supreme Court Opinion, Supreme Court Web Site.
Court Rules on Wiretap Law, Yahoo News (AP), May 21, 2001.
High Court Says Press Isn't Liable for Use of Ill-Gotten Tapes, New York Times, May 22, 2001 (registration required).

Schools May Implement Packet Sniffers to Monitor Students

School systems attempting to prevent students from viewing certain content may implement new packet sniffing software to monitor students. The new programs apparently can detect proscribed activities, including viewing pornographic and violent content or downloading copyright-protected music.

Schools Get Tool to Track Students' Internet Use, New York Times, May 21, 2001 (registration required).

Amendment Would Restrict Collection of Data on Schoolchildren

An Amendment to an education bill proposed by Senators Dodd (D-CT) and Shelby (R-AL) would require schools to give notice and obtain parental consent before allowing commercial interests to collection information on schoolchildren.

SA 457, Student Privacy Amendment.
Bill Takes On Ads at School, Wired, May 17, 2001.

FTC Nominee Won�t Commit to Position on Privacy

FTC Chair nominee Timothy Muris said during a Congressional hearing that he would investigate privacy issues. However, he would not commit to advocating legislation to protect individuals� privacy.

Muris Confirmation Hearings, Tech Law Journal Daily Report, May 17, 2001.
FTC Nominee Muris Commits to Mission, But Not to Legislation Senate Committee Questions Agency Hopeful, Washington Post, May 17, 2001.
On Privacy, New FTC Chief Likely To Keep Hands Off, Newsbytes, June 4, 2001.
FTC member says privacy concerns becoming hysteria, Computerworld, June 5, 2001.

CIPA Filtering Deadline Delayed

According to a settlement agreement between ACLU, EPIC, ALA, and government attorneys, librarians will have until July 2002 to certify compliance with federal Internet filtering requirements.

Technology: Libraries get delay in Internet filter case, Nandotimes (AP), May 16, 2001.

Fading Privacy Series Published

The St. Petersburg Times has published a series of articles titled "Fading Privacy." The series includes articles on the future of privacy, financial privacy, medical privacy, and privacy resources.

Fading Privacy, St. Petersburg Times.

Shop for Financial Privacy

The Privacy Rights Clearinghouse has published a fact sheet for choosing privacy-friendly financial institutions.

Fact Sheet No. 24(c): How to Shop for Financial Privacy, Privacy Rights Clearinghouse, May 11, 2001.

AT&T Added to Spam Blackhole List

AT&T has been added to the Mail Abuse Prevention System (MAPS) anti-spam blackhole list. As a result, any e-mail sent from AT&T IP addresses will be blocked by ISPs that subscribe to the MAPS service.

AT&T's hand caught in spam jar?, CNET, May 11, 2001.
MAPS, Mail Abuse Prevention System.

Information Broker Files Often Inaccurate

Richard Smith, the Chief Technology Officer of the Privacy Foundation, requested and received his own profile from ChoicePoint. ChoicePoint sells profiles to private investigators, attorneys, and federal law enforcement agencies. A review of the profile led Smith to conclude that it contain more misinformation than truthful information. And, Smith learned, he cannot opt-out from the ChoicePoint�s collection of personal data.

My FBI File, Richard Smith Tipsheet, Privacy Foundation, May 11, 2001.
What They (Don't) Know About You, Wired, May 11, 2001.
Botched Name Purge Denied Some the Right to Vote, Washington Post, May 31, 2001.

Court Orders SSNs Removed from Justicefiles.org

A state court in Washington has ordered a web site operator to remove Social Security numbers of police officers from Justicefiles.org. The city of Kirkland had brought suit against the web site operator, alleging that the posting of personal information about the officers would result in harassment and identity theft.

Judge limits police data online, Seattle Times, May 11, 2001.
Justicefiles.org.

European Echelon Delegation Departs Early

Members of an European Parliament (EP) delegation commissioned to investigate Echelon have left the United States early because government officials refused to meet with the delegation. The Echelon surveillance system captures commercial communications, and EP members suspect the system has been used for industrial espionage.

Europeans Leave U.S. In Huff Over Spy Network � Update, Newsbytes, May 10, 2001.
Echelon Watch.
U.S. Echelon Snub Angers Europe, Wired, May 18, 2001.

Senators Introduce Bill to Outlaw SSN Sales

Senators Feinstein (D-CA) and Gregg (R-NH) have introduced a bill that would prohibit the sale or public display of a Social Security number without individual express consent.

S. 848, Social Security Number Misuse Prevention Act of 2001, THOMAS Database.
Senate Bill Would Ban Sale Of Social Security Numbers, Newsbytes, May 10, 2001.

Industry Funded Study Overstates Cost of Privacy

A recently released industry-funded study estimates that the cost of complying with privacy legislation will be in the billions. Professor Peter Swire and others have analyzed this study, and set forth arguments to refute its claims.

New Study Substantially Overstates Costs of Internet Privacy Protections, Peter Swire Web Page, May 9, 2001.
Responses to cost of privacy study from Swire, Smith, Sholtz, Declan McCullagh�s Politechbot.com, May 9, 2001.

Study: Few Businesses Have a Privacy Plan

Computer Economics, a technology research firm, has found that only one in three businesses has implemented a formal privacy plan. The study covered 518 U.S. businesses in a variety of sectors including the insurance industry, professional service firms, the banking industry, and retail organizations.


Privacy Planning Underway in All Sectors But Many Companies Lag Behind, eFLASH Newsletter, Computer Economics Web Site, May 3, 2001.
Only One-Third Of US Firms Have Privacy Plans, Newsbytes, May 9, 2001.

Court Upholds FTC Ban on Sharing Credit Info

A federal district court judge has upheld FTC-imposed restrictions on the sale of personal financial information. The court held that credit bureaus and data brokers must gain individuals� express consent before selling names, Social Security numbers, phone numbers, and other information from credit records.

IRSG v. FTC, (PDF 1.9MB) District Court Opinion, EPIC Web Site.
Federal Court Upholds FTC Ban On Sale of Personal Credit Data, Wall Street Journal, May 8, 2001 (subscription required).
FTC Can Restrict the Use of Consumer Data, Judge Rules, The Standard, May 7, 2001.

Armey Asks Norton to Stop Photo Radar Systems

Majority Leader Armey (R-TX) has asked Interior Secretary Norton to halt plans to implement photo radar systems on park property. Armey argued that using photo radar systems may lead to a surveillance state where the cameras could be used to monitor the travels of citizens.

Photo Radar Program Undermines Privacy, Letter to Interior Secretary Norton from Majority Leader Armey, Majority Leader Web Site, May 8, 2001.
Rep. Armey questions Interior Department photo radar system, Declan McCullagh's politechbot.com, May 8, 2001.
Sleeping policemen, The Economist, June 21, 2001.
Prepared Testimony For the House Transportation Subcommittee on Highways and Transit Hearing on Red Light Cameras by House Majority Leader Dick Armey, Freedom.gov, July 31, 2001.

EU Won�t Delay Implementation of Model Contracts

The European Union has denied the request of US officials to delay the implementation of model contract terms designed to protect EU citizens� data. In April, Treasury and Commerce Department officials asked for delay in the implementation.

EU 'no' to data privacy delay, Financial Times, May 6, 2001.

Privacy Policies Too Complex

Consumers are reporting that privacy policies issued by financial and insurance institutions under the Financial Services Modernization Act of 2000 (Gramm-Leach-Bliley Act) are too complex.

Privacy Policy Notices Are Called Too Common and Too Confusing, New York Times, May 7, 2001 (registration required).

Opt-Out Marketing Spreads

Increasingly, merchants are using opt-out marketing techniques to sell products. Opt-out marketing shifts the burden of stopping service and charges to the consumer.

Rite of Refusal: 'Opt-Out' Marketing Forces Consumers to Speak Up or Be Charged , Washington Post, May 6, 2001.

Privacy Litigation Yields Mixed Results

Without federal laws to protect online privacy, plaintiff attorneys have had to rely on common law, state law, and creative legal arguments to bring cases against companies that invade individuals� privacy. In addition, many companies have employed arbitration clauses and other tactics to shield their legal liability from privacy litigation. As a result, privacy litigation has yielded a mix of both successful and failed attempts to protect individuals.

Privacy Cases Not Yielding Much Payoff, Los Angeles Times, May 6, 2001.

Performance Artists Raise Awareness of Surveillance Cameras

The Surveillance Camera Players engage in various forms of performance art to protest the use of security cameras in New York. Some pray to the cameras in public, many perform short plays for the police monitoring the cameras, and others hold up signs to the cameras with messages such as "We Know You Are Watching."

Live From N.Y.: Security Cam Hams, Wired, May 3, 2001.
Surveillance Camera Players Home Page.
Nowhere left to hide, Salon, June 18, 2001.
Now everybody can be a spy, Boston Globe, August 29, 2001.
Real-Life Cyborg Challenges Reality With Technology, New York Times, September 25, 2001 (registration required).

No Photo Surveillance at 2002 Winter Olympics

Reacting to negative public opinion to the use of facial recognition technology at the Super Bowl, officials have decided not to use photo surveillance at the 2002 Winter Olympics.

Photo Security Out for 2002, Salt Lake Tribune, May 3, 2001.
Face-Recognition Systems Offer New Tools, but Mixed Results, New York Times, May 3, 2001 (registration required).

Advocacy Groups Write to AG on Privacy

A coalition of advocacy groups sent a letter to Attorney General John Ashcroft on Carnivore, government surveillance, and medical records. The groups urged the Attorney General to give ISPs more control over the Carnivore monitoring system, and to ensure that adequate audit trails are in place. The groups also advocated an update of privacy laws to account for recent advances in surveillance technology. Finally, the groups requested changes to the portions of the HIPAA privacy regulations that allow law enforcement access to patient records without court review.

Letter to Attorney General John Ashcroft, EPIC Web Site, May 2, 2001.
Privacy, Tech Law Journal Daily Report, May 3, 2001.
Groups Urge Ashcroft To Act On Carnivore, Privacy Issues, Newsbytes, May 3, 2001.
FBI's troubles could imperil its system of e-mail surveillance, St. Louis Post-Dispatch, June 3, 2001.
Does the FBI's Carnivore System Violate the Constitution?, The Internet Law Journal, July 2001.

Armey Recommends Changes to HIPAA Privacy Regs

Majority Leader Armey (R-TX) recommended in a letter that Secretary of Health Tommy Thompson amend the HIPAA medical privacy regulations. Armey requested that Thompson impose a warrant requirement before Health and Human Services (HHS) officials can obtain patients� records. Currently, the rules allow HHS officials access to patient records without notice or court review.

Letter: Fixing the Medical Privacy Regulations, Majority Leader Armey Letter to Secretary of Health and Human Services Tommy Thompson, Representative Armey Web Site, May 2, 2001 .
Say Ahh, Then Remain Silent, Wired, June 5, 2001.

Spam Accounts for Over 10% of Mail Sent

Jason Catlett, President of Junkbusters corp., says that unsolicited commercial e-mail now accounts for more than 10 percent of all e-mail sent. The pervasiveness of spam is causing individuals to avoid e-commerce.

Consumer Groups Rally to Decry Spam Before Senate Meeting, Internetnews, April 26, 2001.
Senators Show No Taste for Spam, PC World, April 27, 2001.
Marketers Head to DC to Support Spam Bill, DM News, May 2, 2001. Pushing the delete button on spam, Siliconvalley (Scripps Howard), May 1, 2001.
Buried under a mountain of spam, Washington Post, May 3, 2001.
Seven Days of Spam, Los Angeles Times, May 3, 2001.
Privacy, Security Threats Lead Some To Surrender, Washington Post, May 4, 2001.

Legislation to Create CIO Introduced

Senators Lieberman (D-CT) and Burns (R-MT) introduced S. 803, the E-Government Act of 2001. The bill would create a white house appointed Chief Information Officer to ensure that data systems are secure, private, and accessible.

S. 803, the E-Government Act of 2001, THOMAS Database.
Electronic Government Act of 2001, Senator Lieberman Press Release, Government Affairs Web Site, May 1, 2001.
New Legislation Calls For Federal CIO � Update, Newsbytes, May 1, 2001.
E-Government Act, Tech Law Journal Daily Report, May 2, 2001.

Annual Police Wiretap Report Released

The Administrative Office of the U.S. Courts released an annual report on government wiretapping. The report shows that police made 1,190 applications for wiretaps in 2000. None of the applications were denied. In 22 cases, police encountered subjects who were using encryption to protect communications. In all 22 cases, police were able to obtain the plain text of the communication despite the encryption measures.

Applications for Orders Authorizing or Approving the Interception of Wire, Oral, or Electronic Communications, Wiretap Report, Administrative Office of the U.S. Courts.
Fewer, Briefer Wiretaps More Successful in Fighting Crime in 2000, Press Release, Administrative Offices of the U.S. Courts, April 30, 2001.

EPIC Uses FOIA to Evaluate Bush�s First 100 Days

EPIC has sent a series of Freedom of Information Act requests to executive branch agencies to determine the Bush administration�s commitment to privacy issues. One group of requests focuses on scheduling calendars of senior agency officials to determine the frequency with which they met with lobbyists and other interests. The other group of requests seek transition team memoranda, documents that direct agencies on policy decisions when a new administration takes office.

EPIC FOIA Requests, EPIC Web Site.
Group To White House: Do You Care About Privacy?, Newsbytes, April 30, 2001.

Commerce Department Will Create Privacy Position

Commerce Department officials announced that a privacy position will be created to ensure that the agency�s web sites conform with privacy policies.

Commerce Department Creates 'Privacy Advisor' Position, Newsbytes, April 30, 2001.