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For the third year running, identity theft has been the most frequently cited reason why individuals contact consumer protection authorities. In 2003, 43% of complaints to the FTC's Consumer Sentinel database were for identity theft.
FTC Releases Top 10 Consumer Complaint Categories in 2002, FTC, January 22, 2003.
National and State Trends in Identity Theft, FTC, January 2003.
In a federal district court decision by Judge John Bates, Verizon lost its defense against the Recording Industry Association of America. A subpoena was issued by RIAA for the name of a Verizon costumer alleged to have trafficked in copyright violating material. Verizon has announced that it will appeal the decision.
Federal Court's Decision Means Less Privacy for Costumers, Verizon, Jan 21, 2003.
EFF RIAA V. Verizon Amicus Brief, EFF, August 30, 2002.
Judge Rules In RIAA's Favor In Verizon Dispute, RIAA, Jan 21, 2003.
The Wall Street Journal reports that supermarket discount cards do not give consumers savings over grocery stores that do not have loyalty card programs. In a study involving five grocery stores in different U.S. cities, the authors found that stores without loyalty cards were cheaper. The cards create a windfall for grocery stores because approximately 10% of shoppers don't use them, and those who use the cards enjoy the same savings that existed before the loyalty programs began.
CRANKY CONSUMER, The Discount Grocery Cards That Don't Save You Money, Wall Street Journal, January 21, 2003 (subscription required).
Food Chains Pay a Price for Discount Cards, Salt Lake Tribune, July 23, 2002.
The banking industry has started playing "Chicken Little" in anticipation of Congressional action that is likely to increase privacy protections. In statements to a Delaware newspaper, a Bank of America spokesperson claims that institutions will have to set up separate call centers to handle consumer requests if opt-in privacy laws pass. However, even in an opt-in framework, federal law would clearly allow information sharing when necessary to administer transactions, to service, or to maintain an account.
In 2002, before North Dakota residents were to vote on a reference establishing opt-in financial privacy protections, the banking industry ran advertisements claiming that increased privacy protections would prevent automated teller machines (ATM) from working in the state. Other advertisements depicted a great wall being erected around the state if privacy laws passed. To contradict the claim that ATMs would no longer function, the North Dakota Attorney General issued a formal opinion showing that the machines would still operate. The residents ultimately approved opt-in by a 73% vote.
Privacy policies confuse the public, Critics prefer 'opt-in' system to protect information, Delaware News Journal, January 19, 2003.
Protect Our Privacy, Site Devoted to North Dakota Opt-In Financial Privacy Legislation.
Virginia and Maryland legislators have introduced do-not-call (DNC) legislation in order to give individuals more control over telemarketing. VA Senator Leslie Byrne (D) has introduced the Telephone Privacy Protection Act, a bill that addresses both DNC issues and predictive dialers.
MD Senator Brian E. Frosh (D) has introduced Senate Bill 3 to create a free DNC list for residents.
SB 918 Telephone Privacy Protection Act, VA Legislature.
Senate Bill 3, MD Legislature.
Area Lawmakers Again Targeting Telemarketers, Va., Md. Bills Would Let Residents Join No-Call Lists, Washington Post, January 20, 2003.
New Jersey State Senator Shirley Turner (D) has introduced the "New Jersey Financial Information Privacy Act." If passed, the act would require opt-in consent before financial institutions shared information with affiliates or non-affiliates. The bill also requires that financial institutions limit their collection of data on individuals.
Senate Bill 2245, New Jersey Senate Web Site.
The California DMV has revoked Allstate Insurance company's online access to DMV records after Allstate employees were caught accessing personal information without authority.
Illegal snooping costs Allstate access to online DMV records, San Jose Mercury News, January 16, 2003.
The Supreme Court of Georgia has invalidated a state anti-fornication law, stating that "the government may not reach into the bedroom of a private residence and criminalize the private, noncommercial, consensual sexual acts of two persons legally capable of consenting to those acts." The Court recognized that the "right to privacy has a value so essential to individual liberty in our society that its infringement merits careful scrutiny by the courts."
The Court also rejected the prosecution's argument that an individual has no right to privacy when they enter as a guest into the private home of another.
This decision builds upon a 1998 decision that invalidated the State's anti-sodomy law--a law that was previously upheld by the U.S. Supreme Court in Bowers v. Hardwick.
In December 2002, the U.S. Supreme Court granted review of Lawrence and Garner v. Texas, a Texas case involving a "homosexual conduct" law. The case will test the sodomy laws in 13 states.
In re: J. M., a child, Case No. S02A1432, Supreme Court of Georgia, January 13, 2003.
Ga. Supreme Court overturns teen's fornication conviction, Atlanta Journal-Constitution, January 13, 2003.
Lawrence and Garner v. Texas, Lamda Case Review.
EPIC Gender and Privacy Page.
San Francisco is the newest local government in California to pass opt-in privacy protections for financial information use. The law takes effect on January 1, 2004, and requires financial institutions to obtain consent before engaging in affiliate or non-affiliate sharing. Fines start at $2,500 for violation of the law.
Other California jurisdictions, including San Mateo, Contra Costa, Alameda, Santa Cruz and Solano counties, and Daly City have already passed opt-in laws.
Financial Information Privacy Ordinance.
S.F. supervisors move to protect consumer privacy, No data sharing without an OK, San Francisco Chronicle, December 10, 2002.
Richard Smith of ComputerBytesMan.com has challenged the Direct Marketing Association (DMA) to explain how it develops figures measuring the impact of telemarketing sales. According to the DMA, outbound business to consumer telemarketing constituted $274 billion in sales in 2001. If that figure is true, Smith argues "each US resident (adults and children) is spending on average $1,000 per year on outbound telemarketing offers."
Cooling on the Cold Calling?, Some Telemarketers Changing Strategy, Washington Post, January 4, 2003.
ComputerBytesMan.com.
Is the Direct Marketing Association using Enron accounting methods?, ComputerBytesMan.com, December 21, 2002.
In two recent cases, enormous quantities of personal information have been stolen from data warehouses. The Defense Department reported that thousands of medical records were stolen from a Pentagon health care contractor. In that incident, thieves stole hard drives containing more than 500,000 records with Social Security numbers, but left other computer equipment behind. The data was stored electronically as part of the process of building a large network to computerize all military health care files. A $100,000 award is now being offered to individuals who solve the crime.
In a separate incident, the personal information of all 9,600 residents of Iwashiro, Japan was stolen. The data, which included unique identifiers, was stored on data tapes, and apparently were encrypted backups of the national resident registry system.
Pentagon Health Contractor Suffers Theft, Associated Press, December 31, 2002.
Data on residents of town stolen, Theft raises questions about security of residency network, Japan Times, December 29, 2002.
Thanks for Not Stealing My Identity, New York Times, December 6, 2002.
Identity Theft More Often an Inside Job, Old Precautions Less Likely to Avert Costly Crime, Experts Say, Washington Post, December 3, 2002.
In 2001, Governor Gray Davis signed California Senate Bill 168, a measure that increases protections against identity theft. The bill was sponsored by Senator Deborah Bowen (D-Redondo Beach). On January 1, 2003, Californians will be able to place a "security freeze" on their credit reports that prevents credit bureaus from releasing their credit information. This provision attempts to address the practice of credit card companies that extend new credit accounts despite the fact that the consumer had recently reported an incident of credit fraud. Other protections, including the ability to place a "security alert" on the credit report and protections against misuse of the Social Security Number, took effect in July 2002.
Californians Get New Way To 'Freeze' Identity Thieves, Wall Street Journal, January 2, 2002.
Text of Senate Bill 168, California Senate Website.
Privacy Rights Clearinghouse Identity Theft Resource Page.
EPIC Fair Credit Reporting Act (FCRA) Page.
The University of Pennsylvania has appointed a privacy officer with broad responsibilities to protect student data. The school plans to change its student identifier from the Social Security Number to an alternative identifier.
Penn's specialist on privacy sees her niche broadening, Boston Globe, December 22, 2002.
EPIC Student Privacy Page.
Six Recommendations to Create a More Privacy Sensitive College or University, Chris Hoofnagle, EPIC.
Police in Kenosha, Wisconsin report that a stalker used a global positioning system (GPS) device to monitor the movements of a victim. This is the newest in a series of incidents where malicious actors have used new technology to harass or otherwise control others.
Police: GPS device used to stalk woman, CNN.com, December 31, 2002.
EPIC Gender and Privacy Page.
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