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News Archive
January - December 2001
Welcome to our Legal News Archives section. Here you will find
links to additional information and up to date news and editorial
articles about regarding-line privacy. This section is a supplement
to our other sections which have lots of great information about
privacy, legal rights, and unethical advertising practices.
We hope that you will enjoy checking out the remainder of our
site to find out how more information about scammers and advertisers
are collecting data on consumers and stealing web traffic and
how web site owners can protect themselves. Since many legal
cases take months or years to complete the stories are picked
up and continued in other months as the case develops and progresses.
(Update: Newsbytes.com has been taken over by the Washington
Post Company. The links to articles that were in the Newsbytes
archives are no longer active. Many of the articles are still
available on line through other news sources. Please feel free
to search google for additional links to articles originally
appearing on Newsbytes.
December 2001
Survey Finds Few Shoppers Review Web Site Privacy
Policies
Despite their concerns about the security of personal information
given online, only three percent of shoppers thoroughly review
Web privacy policies on a regular basis, according to a study
released by Harris Interactive. The report found that 77%
of consumers preferred a short and concise privacy policy.
The study concluded that buyers are interested in seeing more
straightforward privacy notices.. "This study should
serve as a wakeup call to businesses to take the next step
and educate consumers on matters of personal privacy,"
said Klaus.
Source: "Study: Web Privacy Policies Should Be Shorter,
Clearer for Consumers," E-Commerce Times, Clare Saliba,
12/3/01.
http://www.ecommercetimes.com/
Davis Decries Commercial Abuse Of Birth, Death Data
By David McGuire,
Newsbytes.com Staff Writer
Friday, December 7, 2001; 11:00 AM
Following his move earlier this week to temporarily bar the
California Department of Health and Human Services from distributing
sensitive birth and death date to private companies.Davis
made his decision to suspend the transfer of birth and death
records after a legislative hearing in California revealed
that the California Health and Human Services Department had
provided a birth index of more than 24 million names to an
online genealogy site called Rootsweb.com.
http://washtech.com/news/govtit/14076-1.html
E-Mail Scam Sought To Defraud PayPal Customers
By Brian Krebs, Newsbytes
WASHINGTON, D.C., U.S.A.,
19 Dec 2001, 3:57 PM CST
Customers of online payment processor PayPal.com have helped
to foil an e-mail scam disguised as a cheery holiday greeting
from the company urging customers to "update" their
account information.
http://www.newsbytes.com/news/01/173120.html
http://www.computeruser.com/news/
Company Wins $775,000 In Internet Libel
Case
A jury has awarded 350,000 in punitive damages to a California
company in a lawsuit against a pair of former employees who
posted malicious and defamatory messages on the Internet,
bringing the total award to 775,000, lawyers said. The California
Sup (12/18/2001)
National ID Card Gaining Support
Navy Petty Officer Wellington Jimenez walked into the identification
room at Fort Hamilton in Brooklyn one day recently and gave
his name, rank and fingerprint. In return, he got a token
of the future a plastic ID card embedded with a computer chip.
T (12/17/2001)
http://www.epic.org/privacy/id_cards/
Judge Enters Fraud Injunction Against PacketSwitch.Com
A federal judge has entered an injunction against PacketSwitch.com,
a Northern California company accused of defrauding investors
with bogus claims that it had created a technology capable
of broadcasting movies wirelessly over the Internet. U.S.
Dist (12/14/2001)
http://www.infowar.com/law/01/law_121401c_j.shtml
Arrested Goner Creators Left Obvious Online
Trail
Despite efforts to hide behind nicknames and stolen Internet
accounts, four Israeli teenagers responsible for creating
the Goner Internet worm were easy to identify, investigators
said. The names of the teens, who were arrested Friday by
police in th (12/09/2001)
http://www.commoncriteria.org/news/newsarchive
Five Internet Bank Fraudsters Sentenced
In U.K.
Four people have been jailed for a total of six years and
nine months, and a fifth given community service, in connection
with a major U.K. Internet banking-fraud case. The five people
- four men and one woman - were charged for their part in
what the N (12/07/2001)
http://news.zdnet.co.uk/story/
E-Mail Scam Sought To Defraud PayPal Customers
By Brian Krebs, Newsbytes
WASHINGTON, D.C., U.S.A.,
19 Dec 2001, 3:57 PM CST
Customers of online payment processor PayPal.com have helped
to foil an e-mail scam disguised as a cheery holiday greeting
from the company urging customers to "update" their
account information.
http://www.newsbytes.com/news/01/173120.html
http://www.computeruser.com/news/
Company Wins $775,000 In Internet Libel
Case
A jury has awarded 350,000 in punitive damages to a California
company in a lawsuit against a pair of former employees who
posted malicious and defamatory messages on the Internet,
bringing the total award to 775,000, lawyers said. The California
Sup (12/18/2001)
National ID Card Gaining Support
Navy Petty Officer Wellington Jimenez walked into the identification
room at Fort Hamilton in Brooklyn one day recently and gave
his name, rank and fingerprint. In return, he got a token
of the future a plastic ID card embedded with a computer chip.
T (12/17/2001)
http://www.epic.org/privacy/id_cards/
Judge Enters Fraud Injunction Against PacketSwitch.Com
A federal judge has entered an injunction against PacketSwitch.com,
a Northern California company accused of defrauding investors
with bogus claims that it had created a technology capable
of broadcasting movies wirelessly over the Internet. U.S.
Dist (12/14/2001)
http://www.infowar.com/law/01/law_121401c_j.shtml
Arrested Goner Creators Left Obvious Online
Trail
Despite efforts to hide behind nicknames and stolen Internet
accounts, four Israeli teenagers responsible for creating
the Goner Internet worm were easy to identify, investigators
said. The names of the teens, who were arrested Friday by
police in th (12/09/2001)
http://www.commoncriteria.org/news/newsarchive/
Five Internet Bank Fraudsters Sentenced
In U.K.
Four people have been jailed for a total of six years and
nine months, and a fifth given community service, in connection
with a major U.K. Internet banking-fraud case. The five people
- four men and one woman - were charged for their part in
what the N (12/07/2001)
November 2001
FTC Chief Grilled On Privacy At 1st Congressional
Hearing
At his first hearing on Capitol Hill since taking office,
Federal Trade Commission Chairman Timothy Muris was peppered
with questions today from House lawmakers pressing for more
details of the chairman’s recent stance on a range of
consumer privacy issues.
By Brian Krebs, Newsbytes
WASHINGTON, D.C., U.S.A.,
07 Nov 2001, 1:19 PM CST
http://www.newsbytes.com/news/01/171954.html
http://www.infowar.com/class_1/01/
ASSOCIATED PRESS
November 29, 2001
Gator.com agrees to halt sales of online ads that block out
ads at other Web sites
REDWOOD CITY – Gator.com will stop selling online advertisements
that block out the ads displayed on other Web sites while
the company tries to resolve the complaints of a major trade
group. The controversy revolves around a software program
that superimposes banner ads sold by Gator over the existing
ads of other Web sites. The Interactive Advertising Bureau,
the largest trade group in the $8.2 billion-per-year online
advertising industry, had been threatening to file a complaint
with the Federal Trade Commission unless Gator stopped selling
its "Companion Pop-Up Banner" ads."
http://www.uniontrib.com/news/computing/
Sears Faces Lawsuit Alleging Privacy Policy Violations
for Selling Data
A lawsuit has been filed against Sears, Roebuck and Co. for
allegedly violating its policy of not renting or selling customer
information to anyone outside Sears' family of businesses.
The suit seeks class-action status and alleges that Sears
has violated the privacy of its credit card holders and unjustly
enriched itself at their expense.
Source: "Sears Credit Card Holders Sue over Data Sale,"
Chicago Tribune, 11/1/01.
Senate Bill Would Alter Supreme Court ID
Theft Ruling
Senate lawmakers introduced legislation today to clarify that
the two-year statute of limitations for identity theft does
not start until the consumer becomes aware of the problem.
The bill introduced today by Senate Judiciary Committee Chairman
Patrick (11/16/2001)
http://www.infowar.com/iwftp/newsbits/
The EBlaster, V-Chip's Tougher Big Brother
At some point during the last decade or so, we stopped trusting
ourselves to be good parents. Under assault by the likes of
"Dawsons Creek," 2 Live Crew and Duke Nukem, we
started seeking out lawmakers and computer engineers to do
what we despair (11/26/2001)
http://www.infowar.com/p_and_s/01/
Euro Parliament Advances Data Privacy Legislation
The European Parliament today voted in favor of legislation
designed to safeguard European Union citizens privacy rights
by cutting down on online "spam" and "cookies,"
but the legislation has a long way to go before it becomes
law. The (11/13/2001)
http://www.infowar.com/law/01/law_111301a_j.shtml
Euro Parliament Tackles Spam, Cookies This
Week
The European Parliament this week is reviewing a proposal
that would allow the European Unions 15 member states to ban
the use of unsolicited commercial e-mail, or "spam."
The legislation says that the parliament technically would
leave it up to (11/12/2001)
http://www.infowar.com/law/01/law_111201b_j.shtml
October 2001
FTC Seeks Extension of COPPA Rules to Continue Parental
Consent by E-mail
The Federal Trade Commission (FTC) is proposing a two-year
extension of regulations under the Children's Online Privacy
Protection Act (COPPA) that allow Web sites to obtain parental
permission by e-mail for use of children's data. Because expected
advancements in secure electronic mechanisms and third-party
services are behind schedule, the FTC plans to continue allowing
Web sites to get parent permissions using e-mail for data-gathering
practices. .If a Web site is collecting personal information
solely for its internal use, the site can obtain parental
consent through an e-mail message from the parent.
Sources: "FTC to Extend Children's Privacy Law,"
Stefanie Olsen, CNET News, 10/29/01.
http://news.cnet.com/news/0-1005-200-7704233.html
"FTC Seeks Comment on Amending Children's Internet Privacy
Rule," 10/26/01.
http://www.ftc.gov/opa/2001/10/slidingscale.htm
FTC Chairman Will Not Seek New Consumer Privacy Legislation
The Federal Trade Commission (FTC) plans to strengthen its
enforcement of existing privacy laws by 50%, but will not
seek new privacy legislation, said FTC Chairman Timothy Muris.
"At this time, we need more law enforcement, not more
laws," Muris said, adding he did not rule out the need
for new laws in the future, but said the matter needed "further
study." It's a complete reversal of FTC policy."
Jason Catlett, president of Junkbusters, appreciated that
Muris listened to input from privacy advocates. "Privacy
groups sent their shopping list to him before he came to office,
and he's been pretty damn responsive. The National Do-Not-Call
List for Telemarketers has been on my list for years."
Source: "FTC Refocuses Privacy Agenda," Jeffrey
Benner, Wired News, 10/5/01.
http://www.wired.com/news/privacy/
Children's Web Site Settles FTC Privacy Charges
A company selling children's toys and school supplies has
settled charges with the FTC for violating the Children's
Online Privacy Protection Act (COPPA). The company also violated
COPPA, the agency said, by not offering direct notice to parents
about the company's data protection practices, and by not
notifying parents on the Web site that parental permission
was required under law. The FTC charged that the company violated
the FTC Act on deceptive trade practices by falsely claiming
that parents had to fill out a registration form agreeing
to information collection practices. CARU said it contacted
the company about changing its privacy practices, but that
it failed to comply.
Source: "School Supply Co. Runs Afoul of FTC Privacy
Rule," Robert MacMillan, Newsbytes, 10/2/01.
http://www.newsbytes.com/news/01/170737.html
California Creates Identity Theft Law
Although California State Sen. Debra Bowen, D-Redondo Beach,
failed to get her employee e-mail surveillance bill signed
into law this year, she today scored a victory with legislation
that tries to prevent citizens from becoming the victims of
identity t (10/11/2001)
http://www.infowar.com/law/01/law_101101e_j.shtml
California Gov Vetoes E-Mail Privacy Measure
In an expected move, California Gov. Gray Davis, D-Calif.,
has vetoed a bill from the state legislature that would prevented
employers - in many situations - from reading and monitoring
their employees e-mail. The bill passed the California State
Assemb (10/09/2001)
http://www.juris.duq.edu/winter2001/email.htm
September 2001
Plaintiff Claims Citibank Data Sharing Lawsuit Has
Evidence to Proceed
A customer suing Citigroup and its subsidiary, Citibank, for
allegedly disclosing credit card data, announced she has enough
evidence to proceed with the case. The lawsuit, which was
filed in 1999, claims that Citibank unlawfully disclosed the
account information of Citibank credit cardholders to telemarketers
and vendors. Because of the disclosure, telemarketers had
access to information that allowed them to issue unauthorized
charges to the cardholders' credit accounts, according to
the Seattle law firm Cohen, Milstein, Hausfeld & Toll.
Keelyn Friesen, a lawyer for the firm, said the lead plaintiff
went away on a trip and returned to find her credit card had
been billed for a number of products she had not ordered.
The law firm is seeking class-action status for the lawsuit.
It also seeks an injunction against Citigroup and Citibank,
banning them from disclosing cardholder account information.
Source:
"Citigroup Sued Over Data Sharing," Scott Hovanyetz,
DMNews, 9/10/01.
August 2001
Internet Spammers Settle FTC Fraud Charges
Online credit repair company GetOutFromUnder.com has settled
charges by the Federal Trade Commission (FTC) that it orchestrated
a bulk e-mail campaign to convince consumers that they would
lose their Internet access unless they registered for the
company's age-verification service. The unsolicited e-mail
directed consumers to the company's Web site, which provided
an application form that collected information ranging from
consumers' names and addresses to credit card information,
the FTC said. "All Internet users are required to register
here for Internet licensing," read the notice on the
company's site, according to the FTC's complaint.
Source:
"Spammers Settle FTC Charges," Newsbytes, 8/27/01.
http://www.newsbytes.com/news/01/169443.html
http://www.keytlaw.com/FTC/Actions/ftc010824.htm
Gator rushes to court over ad technology
By Stefanie Olsen
Staff Writer, CNET News.com
August 28, 2001, 4:05 PM PT
audio A software company at the center of a growing dispute
over the use of pop-up ads has sued the Interactive Advertising
Bureau to protect its right to sell ads that can cover those
on other Web sites. Gator, based in Redwood City, Calif.,
filed a lawsuit late Monday in California federal court against
the IAB to "protect the right to utilize Gator's newest
advertising vehicle, the Companion Pop-up Banner." Gator's
service delivers pop-ups that can obscure banner ads sold
on some Web pages.
http://news.com.com/2100-1023-272296.html
IAB Blasts Gator.com as Unfair, Deceptive
By Christopher Saunders
Despite some effort at reconciliation last week, the conflict
between the Interactive Advertising Bureau and Gator.com is
again heating up, with the New York-based industry group charging
that the startup violates publishers' and advertisers' legal
rights. Last week, attorneys for the IAB said they planned
to recommend options to the industry association's leadership
-- including legal action. Based on that news, Redwood City,
Calif.-based Gator.com and the IAB entered into what spokespeople
at the time described as "early, early discussions,"
with sources close to both camps expressing optimism about
a mutually successful outcome.
http://www.internetnews.com/IAR/article/
Interactive Advertising Bureau (IAB) asserts Gator.com's
business practices violate the contract, trademark and copyright
interests of web publishers and advertisers
http://www.iab.net/main/main.html
Massachusetts AG Halts Sale of Customer Data by Bankrupt
Dot-com
Massachusetts Attorney General Tom Reilly has halted Essential.com
Inc., a bankrupt communications and energy services Web site,
from selling personal information on its 70,000 customers.
Bankrupt dot-coms have often attempted to sell customer data
as an asset, even when their privacy policies forbid the release
of consumer information. In May 2001, Essential added a provision
in its privacy statement that allowed the company -- in the
event the company was sold -- to provide customer data "only
as needed to accomplish our business objectives." Essential
had reportedly made a deal to sell its customer list for less
than $1 million and cease operations entirely.
Source: "Web Site Restricted From Selling Customer Data
to Third Parties," Jennifer Disabatino, Computerworld,
8/10/01.
http://www.computerworld.com/cwi/story/
July 2001
Court Denies Credit Bureaus' Request to Delay Strict
Privacy Rules
A federal appeals court in Washington, DC denied a request
from consumer data firms to delay new rules that require credit
reporting agencies to honor strict new privacy laws. The rules
require reporting agencies to abide by strict requirements
when selling so-called "credit header" information.
IRSG had sued the FTC in an effort to strike down the new
regulations on constitutional and other grounds. Credit header
information -- typically found at the top of a consumer's
credit report -- includes a customer's name, address, birth
date and Social Security number. Credit reporting agencies
often sell the credit headers to third-party data aggregators,
private investigators and law enforcement agencies. But following
the passage of 1999's Gramm-Leach-Bliley financial services
modernization law, banks and financial institutions were required
to abide by new measures designed to safeguard the privacy
of their customers.
Source:
"Court Decision Deals Another Blow To Credit Data Firms,"
Brian Krebs, Newsbytes, 6/29/01.
Senate Bill Would Curb Collection Of
Wireless Location Dat
Sen. John Edwards, D-N.C. today introduced legislation that
would force wireless providers to obtain consent from customers
before harvesting their location information. The Location
Privacy Protection Act, would require wireless service providers
to n (07/11/2001)
Court Denies AOL Effort To Derail Privacy
Class Action
A federal judge has ruled that a lawsuit accusing America
Onlines Netscape division of releasing "spyware"
in its SmartDownload utility will move forward through the
court system. In an order issued July 3, U.S. District Judge
Alvin Hellerstei (07/09/2001)
June 2001
California Suit Accusing DoubleClick of Tracking
Consumers to Proceed
A California state judge denied DoubleClick's motion to dismiss
a class action lawsuit that accuses the Internet advertising
firm of tracking and profiling users as they browse the Web.
Companies like DoubleClick use cookies to target specific
advertisements to users who have shown interest in certain
topic areas. The plaintiffs in this case argue that by using
cookies, DoubleClick can store personally identifying information
and build up a virtual warehouse of user profiles based on
their surfing history. They also claim that because the information
is often collected and sold to third parties without the user's
knowledge or permission, it amounts to a violation of their
right to privacy. "What makes this manifestly unfair
is that DoubleClick takes information from you, and even if
you can find a way to opt-out, they keep the information they've
already collected about you," said Ira Rothken, the plaintiffs'
lead attorney.
Source: "Without Settlement, DoubleClick Suit To Proceed
-- Update," Brian Krebs, Newsbytes, 6/8/01.
http://www.newsbytes.com/news/01/166667.html
http://www.infowar.com/law/01/law_060801c_j.shtml
Washington State Supreme Court Upholds Tough Anti-Spam
Law
The Washington State Supreme Court unanimously overturned
a lower court ruling that struck down the state's tough anti-spam
law. The high court ruled that the only burden the law places
on spammers is the requirement of truthfulness -- which in
fact does not burden interstate commerce, but actually helps
it by eliminating fraud. The law requires companies sending
unsolicited commercial e-mails (UCEs) to determine the state
of residence for each recipient. The law also bans UCEs that
contain misleading information in the subject line, an invalid
address or a disguised transmission path. Fines for violating
the law range from $100 to $1,000 per e-mail. The Attorney
General's Office said the case will now be sent back to the
lower court for trial.
Source: "Washington State's Highest Court Upholds Anti-Spam
Law," Lori Enos, E-Commerce Times, 6/8/01.
http://www.ecommercetimes.com/perl/printer/11103/
New FTC Chairman Likely to Be Less of an Activist
on Privacy Issues
Timothy J. Muris, the new FTC Chairman, will likely take a
far less activist approach to consumer privacy issues than
his predecessor, according to associates and colleagues who
know him well. Ernest Gellhorn, a law professor at George
Mason University, said he expects Muris's approach to privacy
issues will differ from former FTC chief Robert Pitofsky's
in several subtle yet important ways. "He's going to
be very sensitive to First Amendment concerns," Gellhorn
said. "He's also going to weigh very heavily the economic
effects of imposing privacy requirements, and whether such
requirements are likely to increase or decrease the flow of
reliable information to consumers." While the FTC under
Pitofsky asked Congress for the power to regulate online privacy
matters, Muris is far more likely to consider the effect on
the market and first amendment rights, Gellhorn added. Miller
also doubts Muris will recommend that Congress pass more stringent
privacy protections for consumers.
Source: "On Privacy, New FTC Chief Likely To Keep Hands
Off," Brian Krebs, Newsbytes, 6/4/01.
http://www.newsbytes.com/news/01/166424.html
ETFTC finds past Amazon practices 'deceptive'
06/19/2001 - Updated 05:24 PM
WASHINGTON (AP) — Bookseller Amazon and its Alexa Internet
subsidiary probably deceived consumers when their Internet
software secretly passed on personal information to the company,
the Federal Trade Commission said. But the FTC said it will
not take any action against the online bookseller because
one of the software programs in question — the comparison
shopping service zBubbles — is no longer operational
and Alexa has changed its stated privacy policy.
http://www.usatoday.com/life/cyber/tech/
May 2001
Congress Moves Toward Creation of Privacy Commission
Both the House of Representatives and Senate recently took
action on legislation to create a federal commission that
would review privacy issues. On a voice vote, the House Subcommittee
on Government Reform approved a bill to establish a commission
to study the need for federal privacy legislation. Kohl said
that Congress should pass "reasonable and thoughtful
privacy legislation, and this bill is a sensible first step
in that process." But critics maintain that the creation
of a commission is a stalling tactic to keep privacy legislation
from becoming law. Rep. Janice Schakowsky (D-IL), who opposed
the House bill, argued that a new federal commission would
create "an illusion of progress on privacy," while
delaying or obstructing current federal and state legislative
efforts to protect consumers. "The public should not
be lulled into a false sense of security regarding privacy,"
Schakowsky warned.
Sources:"Privacy Commission Bill Clears Subcommittee,"
Robert MacMillan, Newsbytes, 5/8/01.
http://www.newsbytes.com/news/01/165464.html
"House Panel Votes to Create New Privacy Commission,"
Molly M. Peterson, National Journal News Service, 5/10/01.
http://www.govexec.com/dailyfed/0501/051001njns.htm
Identity Thieves Thrive in Information Age
By Robert O'Harrow Jr.,
Washington Post Staff Writer
Thursday, May 31, 2001
The identity thieves began their scam the old-fashioned way,
stealing credit card statements, new bank checks and other
documents from mailboxes in a neighborhood just south of Portland,
Ore.But their operation took a high-tech turn that confirmed
what law enforcement authorities and privacy specialists have
long suspected: Criminal groups, like legitimate businesses,
are using commercial online data brokers, which collect and
sell personal information. There's no way to know how often
commercial brokers are used in such schemes. But brokers acknowledge,
in interviews and documents filed with the Securities and
Exchange Commission, that they unwittingly sell dossiers online
to people using fraudulent credit cards and posing as others.
The Justice Department told Congress last week that Internet
fraud, including identity theft, is one of the nation's fastest-growing
white-collar crimes.
http://www.washtech.com/news/regulation/10124-1.html
FTC sides with Amazon.com in privacy dispute
By LUCAS MEARIAN
(May 25, 2001)
The Federal Trade Commission (FTC) sided with Amazon.com Inc.
in a dispute with two privacy groups that accused the online
retailer of deceiving its customers by changing its privacy
policy to permit disclosure of personal information to third
parties.
http://www.computerworld.com/cwi/story/
Amazon Wins Privacy Victory
internetnews E-Commerce News May 25, 2001 | E-Commerce News
Archives
By Beth Cox
Amazon.com (NASDAQ:AMZN) won a major victory today when the
Federal Trade Commission rejected a petition from privacy
advocates claiming that Amazon violated the law by making
changes in its privacy policy last year. In a letter to Junkbusters.com
President Jason Catlett and Marc Rotenberg, president of the
Electronic Privacy Information Center, FTC Consumer Protection
Director Jodie Bernstein wrote that its staff believes that
Amazon's revised privacy policy "does not materially
conflict with representations Amazon made in its previous
privacy policy and that it likely has not violated Section
5 of the FTC Act."
http://www.internetnews.com/ec-news/article/
Privacy Advocacy Group Files Complaint Against eTour.com
EPIC, a privacy rights group, has filed a complaint with the
FTC against eTour.com, alleging the company violated federal
and state consumer protection laws when it sold its customers'
personal information to AskJeeves.com, an online search engine.
In a May 22, 2001 press release, AskJeeves.com said had it
purchased eTour's property, including the registration information
from an estimated 4.5 million users and a list of nearly 2.2
million e-mail subscribers.
Sources: "eTour.com Data Sales Violate Policy - EPIC
- Update," Brian Krebs, Newsbytes, 5/29/01.
"Privacy Fears Over eTour Deal," Andrew Heavens
and Stephanie Kirchgaessner, The Financial Times, 5/24/01.
http://www.newsbytes.com/news/01/166230.html
Night and Day, Computers Collect Information
By Robert O'Harrow Jr.
Washington Post Staff Writer
Wednesday, May 16, 2001; Page G10
Data giants have created dossiers containing names, addresses,
incomes, purchases and other details about 200 million American
adults – and then flashed them to customers on demand.
Profile specialists make models of what consumers are likely
to do or buy. All the while, information brokers look for
data to sell, with rogue operators sometimes using trickery
to collect details about bank accounts, stock portfolios,
telephone calls and other confidential information.Many Americans
believe that data collection has already gone too far. But
information experts say this is only the beginning of an era
in which more people and institutions will seek access to
personal details not available in the past.
http://www.washingtonpost.com
Consumer Groups Ask New FTC Chairman to Promote Consumer
Privacy
An array of nongovernmental consumer groups have asked Timothy
J. Muris, who was sworn in as new FTC Chairman June 4, 2001,
to take specific steps to protect consumer privacy online
and off. The groups -- which include EPIC, the Privacy Rights
Clearinghouse, Consumers Union and anti-spam company Junkbusters
-- want privacy to be one of Muris's top priorities. The consumer
advocates called on Muris to make it easier for consumers
to file privacy complaints and to notify consumers about how
those complaints are resolved.
Source: "Groups Promote Privacy to New FTC Chair,"
Troy Wolverton, CNET News, 5/30/01.
http://news.cnet.com/news/0-1007-200-6119867.html
Anti-spam Legislation Faces Opposition in Congress
Despite expectations that Congress would pass legislation
this year restricting "spam" -- unsolicited commercial
e-mail -- a tough anti-spam bill is faltering in the House
and a milder Senate version faces opposition. Internet service
providers (ISPs) would also benefit from a reduction in spam.
The costs of spam are borne by the ISP, which must handle
the increased Internet traffic.
Source:
"Congress Has Hard Time Stomaching E-mail Spam,"
Rick Lockridge, CNN.com, 5/14/01.
http://www.cnn.com/2001/TECH/internet/05/14/
Privacy at What Cost?
By Mary E. Behr, PC Magazine
May 18, 2001
Compliance with online privacy laws may create unintended
consequences and a high price tag. There are many newly proposed
privacy laws. Hahn's report comments on four of them: the
Consumer Internet Privacy Enhancement Act, the Consumer Online
Privacy and Disclosure Act, the Consumer Privacy Act, and
the Spyware Control and Privacy Act of 2001. These acts address
how Web sites collect personally identifiable information
and whether sites can distribute that information to third
parties. The Consumer Privacy Protection Act is significant
in that it allows for civil suits for recovery of damages.
Hahn concludes the report by recommending more study on the
benefits and costs of enacting proposed online privacy laws
before decisions are made about whether such laws are really
necessary.
http://www.zdnet.com/products/stories/reviews/
Privacy Advocate Calls on Congress to Act
By Carol King
Amid the hacking problems plaguing DoubleClick again in as
many days, Jason Catlett, president of Junkbusters.com, is
urging Congress to investigate online profiling companies.
"These profiling companies are gathering information
on consumers, keeping that vast amount of data in secrecy
and then are unable to keep the same data secure from hackers,"
Catlett told internetnews.com. "This is a total outrage."
In an open letter, addressed to Congressional Privacy Caucus
Co-chairs Rep. Joe Barton (R-TX), Rep. Edward J. Markey (D-MA),
Senator Richard Shelby (R-AL), and Senator Christopher Dodd
(D-CT)
http://www.internetnews.com/dev-news/article/
Lawmakers Reintroduce Social-Security-Number
Privacy Bill
In an effort to head off an increasing incidence of identity
theft, House lawmakers have reintroduced legislation that
would restrict the sale and public display of Social Security
numbers, and establish criminal penalties for violations.
H.R. 2036, (05/30/2001)
http://www.infowar.com/law/01/law_053001d_j.shtml
Identity Thieves Thrive Online
The identity thieves began their scam the old-fashioned way,
stealing credit card statements, new bank checks and other
documents from mailboxes in a neighborhood just south of Portland,
Ore. But their operation took a high-tech turn that confirmed
w (05/31/2001)
http://www.infowar.com/class_1/01/
Senate Bill Would Ban Sale Of Social Security
Numbers
Senate lawmakers introduced legislation on Wednesday that
would make it a crime to sell or publicly display a persons
Social Security number without their expressed consent. Sens.
Diane Feinstein, D-Calif., and Judd Gregg, R-N.H., introduced
the measure (05/10/2001)
http://www.cosmiverse.com/tech05110101.html
April 2001
SETTLEMENT AGREEMENT Amazon.com and Alexa Internet
Settlement Agreement
dated April 16, 2001
Amazon and Alexa settle the terms of several class action
lawsuits whereby Amazon & Alexa had gathered personal
information including such informtion as home addresses, email
accounts, social security numbers and other personal information.
http://www.alexa.com/settlement/settle.html
also see: http://users.rcn.com/rms2000/privacy/alexa.htm
Amazon unit settles privacy lawsuit
By Troy Wolverton
Staff Writer, CNET News.com
April 27, 2001, 3:40 PM PT
Amazon.com's Alexa Internet subsidiary said Friday it will
pay up to $1.9 million to its customers to settle a class-action
lawsuit.
San Francisco-based Alexa said it will destroy some of the
personally identifiable records in its database as part of
the settlement, and pay up to $40 per person to customers
whose records are found in the database.
http://news.com.com/2100-1017-256663.html
FTC Accuses Information Brokers of Violating Privacy
Regulations
FTC has charged three information brokers with illegally obtaining
and selling private bank account information. The three brokers
were charged with violating privacy provisions in the Gramm-Leach-Bliley
Act (GLB), which was passed in 1999. Among other provisions,
GLB made it a crime to use deception to obtain and resell
bank account balances, stock portfolios and other financial
records. In 2000, FTC began warning information brokers --
firms that collect and sell personal data, such as addresses
and Social Security numbers -- of its intention to enforce
the law. While pretext calling has been illegal since November
1999, "it is being disregarded by many," said Brad
Blower, assistant director of FTC's consumer protection bureau.
Information brokers routinely advertise their services on
the Internet. Consequently, Blower said, "information
you expect is private is out there," with information
brokers engaging in pretext-calling "for a price, and
the price is as little as $100."
Sources:
"FTC Charges Three Data Brokers With Breaking Privacy
Regulations," Glenn R. Simpson, The Wall Street Journal,
4/19/01.
"Three Charged With Selling Confidential Data in FTC
Sting," Robert O'Harrow Jr., The Washington Post, 4/19/01.
Cookies Suit Against DoubleClick Dismissed by Federal
Judge
A federal judge in New York City has dismissed a class action
against DoubleClick Inc. that challenged the Internet advertising
firm's use of cookies. The ruling is the first to address
whether the cookies -- small electronic files that are downloaded
onto consumers' hard drives -- violate consumer privacy. DoubleClick
uses cookies as a way of identifying computer users who will
be likely candidates to respond to banner advertisements placed
on Web sites. Some legal scholars say DoubleClick's victory
may not be definitive because the decision did not address
the application of state law to cookies. "This is the
first volley," said Joel Reidenberg, a professor at Fordham
University School of Law. "The real activity will be
under state law." But DoubleClick attorney Lori Schechter,
a partner at Morrison & Foerster, said the court's ruling
with regard to federal statutes is applicable to state law.
"The court rejected plaintiffs' contention that a violation
occurs every time a Web site accesses a cookie on a computer
user's hard drive," Schechter said.
Source: "Class Action on Cookies Crumbles," Brenda
Sandburg, The Recorder, 3/30/01.
"DoubleClick Privacy Lawsuit Dismissed By U.S. Judge
(Update2)," Christopher Mumma, Bloomberg, 3/30/01.
http://www.newsbytes.com/news/01/163925.html
FTC Settles Charges Over Children's Privacy Law
As part of a crackdown on Internet sites that collect personal
information from children without their parents' permission,
FTC announced that three online companies have agreed to pay
a total of $100,000 in fines to settle charges that they violated
the Children's Online Privacy Protection Act (COPPA). It is
the first time authorities have penalized Web sites for violating
COPPA, which took effect one year ago. FTC accused Monarch
Services Inc., BigMailBox.com Inc. and LookSmart Ltd. of illegally
collecting names, addresses, telephone numbers and other information
from children under 13. Among the law's provisions are requirements
that commercial Web sites and online services directed at
children obtain verifiable parental consent before collecting
data and give parents access to the data and the right to
amend or delete it.
Sources: "3 Web Firms to Pay Fines for Collecting Data
on Children," Robert O'Harrow Jr., The Washington Post,
4/20/01.
"FTC Settles Over Violations of Kids' Privacy Law,"
Keith Perine, The Industry Standard, 4/19/01.
http://www.pcworld.com/news/article/0,aid,47952,00.asp
Amazon.com Subsidiary Settles Privacy Suit for $1.9
Million
Amazon.com subsidiary Alexa Internet has agreed to compensate
users for collecting personal information. As part of a settlement
for a series of lawsuits, Alexa will pay up to $1.9 million
to users whose personally identifiable information is found
in the company's database. Alexa offers a service that rates
Web content for users and provides information about related
links and contact information for sites they visit. In a series
of class action lawsuits filed against Alexa beginning last
year, plaintiffs charged that Alexa collected and stored their
personal information in violation of privacy laws. The lawsuits
came after a privacy complaint filed with the Federal Trade
Commission (FTC) by computer security expert Richard Smith.
Smith alleged that Alexa was collecting more personal data
than Amazon acknowledged. Smith's complaints led to a FTC
inquiry that Alexa President Brewster Kahle said is "ongoing."
Despite the settlement, Alexa continues to deny any wrongdoing.
Sources: "Amazon Unit to Pay in Privacy Settlement,"
Douglas F. Gray, IDG News, 4/27/01.
http://www.pcworld.com/news/article/0,aid,48704,00.asp
"Amazon Unit Settles Privacy Lawsuit," Troy Wolverton,
CNET News.com, 4/27/01.
http://news.cnet.com/news/0-1007-200-5754965.html
U.S. and European Business Groups to Create Online
Privacy Standards
The U.S. Better Business Bureau and two European business
groups announced that they were developing a set of standards
for Web sites to ease consumer concerns about doing business
over the Internet. The three groups said they would merge
their codes of conduct to provide a voluntary, international
standard for online commerce, with procedures to resolve disputes.
Source: "Groups to Offer Global E-Commerce Conduct Code,"
Andy Sullivan, Reuters, 4/23/01.
http://www.zdnet.com/ecommerce/stories/main/
Privacy Groups Criticize Spam Bill at Senate Hearing
Privacy advocates have criticized a Senate anti-spam bill,
arguing that the proposal does not go far enough. "A
good spam bill would have an opt-in criterion rather than
an opt-out," said Jason Catlett, CEO of Junkbusters Corp.
Accordingly, the legislation requires valid return e-mail
addresses for every piece of e-mail marketing, so that recipients
can opt-out. The bill also gives ISPs some legal recourse
against spammers, and grants state attorneys general the ability
to sue e-mail marketers on behalf of citizens for violating
an opt-out policy. Despite the controversy at the Senate hearing,
industry representatives continue to support the bill. "There
were disagreements, but no real animosity," said Jerry
Cerasale, executive vice president for government affairs
with the Direct Marketing Association. Cerasale added, "Senators
Burns and Wyden want to get the bill moving. It's better than
the status quo."
Sources: "Privacy Groups Blast Spam Bill," Ray Schultz,
IndustryClick, 4/26/01.
http://www.industryclick.com/magnewsarticle.asp
"Consumer Groups Rally to Decry Spam Before Senate Meeting,"
Christopher Saunders, InternetNews, 4/26/01.
http://www.internetnews.com/IAR/article/
March 2001
Study of Children's Web Sites Finds Violations of
Privacy Law
The Annenberg Foundation, a public policy think-tank affiliated
with the University of Pennsylvania, stated in a report that
most Web sites geared toward children do not comply with the
Children's Online Privacy Protection Act (COPPA), implemented
by the Federal Trade Commission (FTC) a year ago. "When
it comes to their privacy policies, Web sites targeting children
seem to not be taking the FTC rules very seriously,"
said Joseph Turow, the report's author. Researchers studied
162 of the most popular children's Web sites, focusing on
those that appeal to children under the age of 13. They discovered
that almost half of the 107 sites that collected information
did not prominently link users to a privacy policy. "Before
this law, the FTC found that sites were asking incredible
questions, like parents' income and family size. It was like
children were sitting ducks."
Source: "Study: Privacy Violations Found on Kids' Web
Sites," Deborah Durham-Vichr, NewsFactor.com, 3/28/01.
http://dailynews.yahoo.com/h/nf/20010328/tc/8543_1.htm
Hack at Amazon-owned service exposes thousands
By Troy Wolverton
Staff Writer, CNET News.com
March 5, 2001, 4:50 PM PT
Amazon.com-owned book service Bibliofind.com restarted its
Web site Monday in the wake of a hacker attack that compromised
some 98,000 customer records and forced the company offline.
The hacker downloaded customer records from the site, including
customers' names, addresses and credit card numbers, Courtovich
said.
http://news.com.com/2100-1017-253601.html
Web Bug Usage by Online Advertisers on the Rise
More than 30 percent of Web pages sampled during the 2000
Christmas season contained new generations of Web bugs that
the advertising industry is using to secretly track online
users, privacy advocates say. Richard Smith, chief technology
officer at the University of Denver's Privacy Foundation,
said the use of sophisticated Web bug tracking devices "has
grown dramatically" over the past year. Smith said many
companies are not disclosing their use of bugs in their privacy
policies, and at least one Web bug version he uncovered searches
a user's computer while they are looking at the site. At a
briefing on Web bugs for the congressional privacy caucus,
Sen. Richard Shelby (R-AL), said he was outraged at the sophistication
of some new generations of bugs, which can secretly extract
the most sensitive data from a user's computer while they
are visiting a Web site. "You can get more information
off a computer than through a wiretap," he said. Christine
Varney, a former Federal Trade Commission official, said that
using Web bugs to extract data from a computer without a user's
knowledge is a felony under existing federal laws. She said
companies should alert visitors they are using the devices.
Source: "Web Bugs Secretly Track Users, Extract Information,"
Lance Gay, Scripps Howard News Service, 3/2/01.
http://www.nandotimes.com/technology/story/
FTC Commissioner Says Businesses Must Take Lead on
Privacy
Industry leaders must take the initiative on online privacy
regulation or the federal government will do it for them,
warned FTC commissioner Orson Swindle, in a paper published
by the Progress and Freedom Foundation (PFF). A longtime opponent
of government regulation of Internet privacy, Swindle is believed
to be the Bush Administration's top pick to replace FTC Chairman
Robert Pitofsky, whose term expires this fall. Swindle was
one of two FTC commissioners on the five-member panel to vote
against a recommendation that Congress pass online privacy
legislation. To avoid government regulation, Swindle said
businesses must: 1) make consumer privacy concerns part of
its corporate culture; 2) educate lawmakers about the benefits
of Internet technology and the costs of unnecessary regulation;
and 3) ensure their practices are legal and ethical. Commissioner
Swindle's paper regarding online privacy regulation is available
here. http://www.pff.org/POP_8.4.htm Source:
"U.S.: Businesses Must Self-Regulate Net Privacy,"
John L. Micek, NewsFactor Network, 3/2/01.
http://www.newsfactor.com/perl/story/7884.html
Mitnick: Identity Theft Easy As Pie
Thanks to lame online security measures, stealing an individuals
identity is like taking candy from a baby, says reformed hacker
Kevin Mitnick. Passwords, user names and other data used by
financial institutions and utility companies to verify identi
(03/05/2001)
Senate Includes Data Privacy Clause In Bankruptcy
Bill
The Senate Thursday voted 83-15 in favor of a bankruptcy code
reform bill that includes language that would in many cases
bar companies in bankruptcy proceedings from selling lists
of customers personal data to other companies, if the firm
going out of b (03/16/2001)
February 2001
Network Solutions Steps Up Sale of Database to Marketing
Firms
VeriSign is increasing its efforts to sell marketers the information
gathered when a company registers a Web address with its subsidiary
Network Solutions (NSI). NSI has sold such data for some time,
but is now moving aggressively to sell data by sponsoring
newsletters distributed to direct marketers, according to
Cheryl Regan, a spokesperson for VeriSign. The data being
sold is gathered when a company registers a domain name with
NSI, and includes the company name, street address, telephone
number, and e-mail address. Consumer advocates say any organized
effort to use the data for purposes other than the intended
goal of obtaining an address is troubling. "There's an
increasing loss of faith in the ability to have your information
used only for reasonable, legitimate purposes," says
Lauren Weinstein, a privacy advocate who writes about cyberspace
issues. But VeriSign insists it sells the information in a
privacy sensitive way, including giving companies a chance
to opt-out. "We have been doing it with safeguards in
place and to our own privacy guidelines," Regan said.
Sources:
"Network Solutions Selling Database Info," Margret
Johnston, IDG News Service, 2/16/01.
"Network Solutions Offers Its Database Of Domain-Names
to Marketing Firms," Thomas E. Weber, The Wall Street
Journal, 2/16/01.
http://www.pcworld.com/news/article/0,aid,41962,00.asp
http://www.cnn.com/2001/TECH/industry/
Radiate Settles Spyware Class Action Radiate,a
company that creates advertising programs for shareware, has
settled a class action spyware suit. Radiate created programs
that were including in popular software such as CuteFTP. The
programs, according to the plaintiff attorneys, monitored
the users without their knowledge or permission. Radiate Settles
Spyware Class Action, InternetNews, February 28, 2001. http://www.internetnews.com/bus-news/article/
Senate Bill Bans Banks From Selling
Social Security Numbers
Sen. Richard Shelby, R-Ala., reintroduced legislation today
to ban the sale and purchase of Social Security numbers by
financial institutions. Shelby, co-chairman of the bipartisan,
bicameral Congressional Privacy Caucus, said he introduced
"Social (02/14/2001)
Bank of America Sued for Selling Credit Reports
Bank of America, the nation's third-largest bank, is being
sued for allegedly selling thousands of unauthorized consumer
credit reports to unaffiliated corporate entities. The suit,
filed in federal court in Baltimore, alleges that the bank
obtained thousands of credit reports for no apparent reason
and then sold those reports to individuals and entities who
were not affiliated with the bank. Rodney R. Sweetland, the
attorney representing the 32 plaintiffs in the case, said
information gained from his clients indicate that at least
two unidentified Bank of America employees obtained credit
reports from credit agency Trans Union and sold them to an
individual or individuals outside the financial institution.
Source:
"Suit Says Bank Of America Violates Financial Privacy
- Update," Brian Krebs, Newsbytes, 2/14/01.
"Bank of America Sued for Widespread Financial Privacy
Violations," PRNewswire, 2/14/01.
January 2001
Congressional Group Backs Internet Privacy Legislation
On February 1, 2001, a key U.S. Congressional group said it
supported passing a strong Internet privacy bill that bans
Web tracking technologies that monitor consumers online. But
federal privacy laws were needed to address growing public
concerns about electronic surveillance, including "Web
bugs" that secretly track online behavior. At least 13
privacy bills have been introduced so far this year, and several
more from the 2000 session are expected to be reintroduced.
Sources:
"U.S. Lawmakers Announce Plans on Internet Privacy Law,"
Andy Sullivan, Reuters, 2/1/01.
"Congress Opens Debate Over Online Privacy," Jennifer
O'Neill, Medill News Service, 1/26/01.
http://www.pcworld.com/resource/article/
Survey Finds Children Willing to Give Out Private
Family Data Online
Seventy-five percent of children are willing to disclose private
family information online in exchange for goods and services,
according to a new report released by eMarketer. According
to the report, children who are offered incentives, such as
prizes, products or cash, are more likely to provide their
family's personal information online. Fifty-four percent of
the children surveyed were willing to disclose the name of
their parents' favorite store, while 26 percent were willing
to tell e-tailers about their parents' weekend activities.
It's an issue that parents should address."
Sources: "75% of Children Are Willing to Give Out Private
Family Information Online," Business Wire, 1/24/01.
"Report: Wired Kids Ready To Leak Private Info,"
Michael Mahoney, E-Commerce Times, 1/24/01.
http://www.ecommercetimes.com/perl/story/?id=6942
Travelocity exposes customer information
By Troy Wolverton
Staff Writer, CNET News.com
January 22, 2001, 6:30 PM PT
A security breach at Travelocity exposed the personal information
of thousands of the online travel company's customers, the
company confirmed Monday. Names, addresses, phone numbers
and e-mail addresses of Travelocity customers who participated
in a promotion on its site were exposed. For more than a month,
up to 51,000 names could have been exposed by the breach,
said Jim Marsicano, executive vice president of sales and
service for Travelocity. Travelocity is only the latest site
to compromise customer information. Last month, a hacker broke
into Egghead.com, potentially exposing its 3.7 million customer
accounts. Earlier last year, security breaches or hacker attacks
exposed customer and client information at CreditCards.com,
Eve.com, IKEA and Amazon.com
http://news.com.com/2100-1017-251344.html
FTC Offers Fraud, Identity Theft Data Online
The Federal Trade Commission FTC is now providing access to
a Web site that includes aggregated complaint information
from a multi-agency database, called Consumer Sentinel, which
consists of more than 300,000 consumer complaints involving
everything fro (01/30/2001)
Dying Dot-Coms' Customers Coveted
As the death toll of electronic commerce companies rises,
a battle is raging over perhaps their only prized remains
customer lists. In an information age that puts a premium
on a dot-coms ability to target consumers with relevant offers,
such troves c (01/30/2001)
Sen. Edwards Unveils New Privacy Bill
Sen. John Edwards, D-N.C., has reintroduced legislation originally
proposed in 1999, now called The Spyware Control and Privacy
Protection Act, that would protect the privacy of online shoppers
and other Net users whose activities are secretly monitored
(01/30/2001)
Michigan Reaches Privacy Pact With eGames
Over 'Spyware'
A computer game distributor who Michigans attorney general
felt wasnt being clear about its use of customers data has
agreed to revamp its software to remove marketing-friendly
"spyware." Attorney General Jennifer Granholm announced
the settleme (01/12/2001)
Leave Me Alone
January 16, 2001
By Matthew P. Graven
Imagine a world where every move you make is monitored. Everywhere
you go, everything you look at, and everyone you communicate
with—all tracked. This isn't an Orwellian novel; it's
the Internet.
Information about you is valuable—especially to companies
that use it as a way to gain an advantage over their competitors.
By knowing each customer's preferences, purchasing behavior,
and browsing patterns, sites can provide a better experience
and perhaps sell more products, or at least ensure that people
return. Web sites build customer profiles by tracking where
customers go and what they look at or buy on the site. Or
they may purchase profile data about individuals from marketing
companies and advertising networks that monitor how individuals
browse the Web.
http://www.pcmag.com/print_article/
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