Carrier IQ Lawsuit Report
Carrier IQ Lawsuit News – 1/25/2012: In 1999, DoubleClick Inc. became a target of privacy advocates and lawsuits for collecting and selling information on individual Web surfing habits merged with information from other databases to identify users by name and create online customer preference profiles (Straub & Collins, 1990). In 2002, U.S. Bancorp paid a $7.5 million fine to settle one lawsuit, agreed to stop sharing customer account information, including credit card numbers, account balances, and Social Security numbers with unaffiliated, nonfinancial third parties to settle yet another suit, and still has other privacy lawsuits pending (Joss, 2001). Users of the Internet are getting lots of unwanted e-mails from even those companies with whom they have not had a previous business relationship.
With references to public concerns various countries have implemented varying degrees of privacy legislations designed to regulate how companies access and utilize information on potential customers. The United States to date has had a relatively business-friendly, minimal intervention approach encouraging organizationas to provide self-regulated privacy protections. By contrast, the European Union (EU) has taken a pro consumer approach with stringent regulations banning the use of personal information until consent is received (Turner & Dasgupta, 2003). The effective mitigation of privacy issues will improve consumer willingness to shop on the Web, thus improving revenue for online business initiatives and facilitating future growth in the international e-commerce market place. Information technology will continue to redefine organizational practices and business models with respect to privacy (Payton, 2001). Research conducted by Straub and Collins provides a comprehensive discussion of the privacy implications of unauthorized access to personal information resulting from a security breach (Straub & Collins, 1990).
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The advent of mainframe data processing in the 1960s provided mostly large organizations with a means to obtain, store, and manipulate information in a centralized manner that up until that time was not possible (Westin, 1967). As mainframe computer technology was assimilated into mainstream business and governmental organizations, users of the technology began exploiting the massive computing and storage capabilities to create databases of information on individuals, much of it considered personal. The explosive growth of the multibillion dollar direct marketing industry, for example, was facilitated by the availability of large commercial databases compiled from the public information, including motor vehicle and real estate records, telephone and other directories, or from responses supplied by consumers on warranty cards and other surveys (Turner & Dasgupta, 2003). The new capabilities also allowed profiles of individuals to be created to assist firms in credit decisions. The resultant public anxiety led to the passage of the Fair Credit Reporting Act in 1970 and the Privacy act of 1974, which defined the rights of individual citizens and outlined the U.S. Government’s responsibility for protecting the personal information it maintains (Davis, 2000).
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Continued technological evolvements in the mid-to-late 1980s, including the personal computer, workstations, and communications networks, enabled even broader diffusion of database management, marketing, and telemarketing tools. Individuals and small organizations now had the computing capability to manipulate and store information that before required access to a mainframe. Further, new networking capabilities provided the ability to more easily distribute and share information with other organizations and individuals (Turner & Dasgupta, 2003). The Electronic Communications Privacy Act (ECP) of 1986 prohibited unauthorized interception and alteration of electronic communications and made it illegal for online services to disclose personal information without a warrant. The Computer Matching and Privacy Protection (CMPP) Act of 1988 regulated the use of computer matching of fedral records subject to the Privacy Act except for legitimate statistical reason (Davis, 2000). A 1992 survey indicated that 76 percent of the public felt they had lost control over how information about them was circulated and used by business organizations (Louis, 1992).
Unlike law enforcement investigations (as opposed to secret police monitoring), launched only after crimes have been committed, wholesale monitoring of Internet usage is done before any illegal act occurs (Caloyannides, 2003).
Continued advances in information technology in general, and the growth of Internetworking technologies specifically, further facilitate the collection, distribution, and use of personal information. Due to increasing Web users day by day people have also started raising concerns while doing online transactions over the Internet. A 1998 survey examining scenarios and privacy preferences suggests that Web users can be statistically clustered into three primary groups based on their attitudes and privacy (Ackerman, Cranor, & Reagle, 1999). Privacy fundamentalists (17 percent) are described as unwilling to provide any data to Web sites and are very concerned about any use of data. The pragmatic majority (56 percent) are concerned about data use but could be made comfortable by the presence of privacy protection measures such as laws and privacy policy statements, and the remaining respondents (27 percent) are categorized as marginally concerned (Turner & Dasgupta, 2003). Similar results from a separate study conducted in Germany in 2000 not only identify the privacy fundamentalists (30 percent) and the marginally concerned (24 percent), but also describe two distinct subgroups within the middle tier delineated as identity concerned (20 percent) and profiling averse (25 percent) (Grimm & Rossnagel, 2000).
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Carrier IQ Lawsuit