Category Archives: Privacy and Online Privacy

Corporations Lack “Personal Privacy” for Purposes of the Freedom of Information Act

March 2nd, 2011

Almost all government documents are subject to disclosure pursuant to the Freedom of Information Act. FOIA has a handful of limited exceptions, normally limited to matters of national security and documents showing the government’s deliberative process. FOIA also exempts certain documents that would disclose private information about third-persons.
One such “third person,” AT&T, sued to prohibit the FCC from disclosing information requested pursuant to FOIA because the disclosure would infringe upon AT&T’s personal privacy.
The Supreme Court unanimously rejected AT&T’s argument and held that corporations have no personal privacy for purposes of FOIA. The decision is a victory for open government because it means that documents provided to the government in response to a subpoena or other request will not be withheld.
The decision is here:
FCC v. ATT

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U.S Search Settles Data Breach Lawsuit with FTC

September 23rd, 2010

An online data broker that charged consumers $10 based on the promise that it could “lock their records”so others could not see or buy them, has agreed to settle Federal Trade Commission charges that its claims were deceptive and violated federal law. The settlement requires that the operation refund the fees it charged to nearly 5,000 consumers and bars misrepresentations about the effectiveness of any service that purports to remove information about consumers from the broker’s website.
This is the latest in a series of FTC cases challenging companies’ failure to honor their privacy pledges.
US Search, Inc., is an online data broker that compiles public records and sells data about consumers to the public. The records may contain not only names, addresses and phone numbers, but also information such as aliases, marriages and divorces, bankruptcies, neighbors, associates, criminal records, and home values. US Search offered customers a variety of search services, including “People Search,” “Background Check,” Real Estate Reports,” and “Criminal Records/Court Records Searches.” It also offered a “Reverse Lookup” service that can return the name of an individual associated with a particular phone number or property address.
Since June 2009, US Search sold consumers its “PrivacyLock” Service, which it claimed would allow them to “lock their records” and prevent their names and other information from appearing on the company’s website, its search results, or advertisements for a year.
According to the FTC complaint, the claims were false. The agency alleged the PrivacyLock Service:
* did not block consumers’ names from showing up as an associate of someone else in a search for the other person’s name;
* did not block consumers’ information from appearing in a “reverse search” of their phone number or address, or in a search of their address in real estate records;
* did not work if the consumer changed addresses, thereby generating new records that would not be subject to the PrivacyLock; and did not work if the consumer had multiple records – for example “John Smith” and “John T. Smith.”
The settlement bars US Search, Inc. and US Search, LLC from misrepresenting the effectiveness of their PrivacyLock Service or any other service they offer that will allow consumers to remove information about themselves from search results, websites, and advertisements. The settlement order also requires that they disclose any limitations on such services and provide refunds to consumers who paid for the service.

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AT&T / Apple Data Breach Releases 140,000 Sensitive Email Accounts

June 11th, 2010

hacker.JPGAccording to press reports, as many as 140,000 email accounts of high ranking politicians, government and military officials, and private senior executives were released as part of a data breach of Apple iPads on the AT&T wireless network. The FBI has started an investigation but it is in its earliest stages and it isn’t clear how the breach or occurred or who was behind it. Gawker.com has the story here.
Data breaches such as this are becoming all too common and risk exposing unsuspecting individuals to identify theft. Last month Heartland Payment Systems settled a data breach class action for nearly $3M. Despite the surge in data breaches, and the obvious risk associated with them, courts have wrestled with the idea that a lawsuit can be filed merely because the plaintiff has an increased risk of identity theft. Normally an actual injury is required, not just the risk of an injury.
The actual injury requirement makes perfect sense in an analog world. In a digital world, where you may suffer identify theft months or years before you actually learn of the theft, being forced to wait until significant damage is done seems silly.

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