New Data Security Regulations to Take Effect in Massachusetts on March 1st, 2010

The scramble in on as companies seek to comply with the identity theft regulations adopted in Massachusetts and touted as 'the first of their kind in the country' which are scheduled to take effect on March 1, 2010.

The effective date’s announcement followed a report indicating there have been over one million instances of Massachusetts residents’ personal information being exposed in two years. “We hope these regulations will make it harder for information to get into the wrong hands, and lower the number of instances of data being lost or stolen,” said Barbara Anthony, the Undersecretary of the Office of Consumer Affairs and Business Regulation (OCABR).

While M.G.L. c. 93H was passed in 2007, controversy emerged over how to pursue some of the law’s objectives under the regulations. After repeated postponements and revisions—brought upon largely by changes in the economic climate as well as compliance concerns of businesses— the regulations are now set to take effect on March 1st.

“We heard testimony from a wide range of sources, and the message was that we have struck the right balance. We created regulations that are protective of consumers without being onerous to businesses,” Undersecretary Anthony said.

The regulations, known as 201 CMR 17 (PDF file), are designed to help preserve privacy by increasing the level of security on personal information. These regulations apply to those that own or license “personal information” about a Massachusetts resident. Personal information includes a resident’s first name and last name (or first initial and last name) in combination with their: (a) Social Security number; (b) driver's license number or state-issued identification card number; or (c) financial account number, or credit or debit card number, that would permit access to a resident’s financial account.

The regulations require businesses take a risk-based approach and develop, implement, and maintain a written comprehensive information security program containing administrative, technical, and physical safeguards appropriate to the size, scope, and type of business. The written security plan takes into account the amount of resources available; the amount of stored data; and the need for security and confidentiality of both consumer and employee information. Further, the written security plan also requires a comprehensive security system be included which covers computers with access to the stored personal information (including any wireless system.)

The regulations set minimum requirements to the extent they are technologically feasible. For instance, encryption of personal information is required for: a) transmitted records and files that will travel across public networks, b) data transmitted wirelessly, and c) information stored on laptops or other portable devices. Further, the security system requirements for computers require other protocols be adopted and followed (e.g. passwords, training, restrictive and monitoring efforts, as well as firewall, malware, and other updated protections.)

In examining reported data breach incidents, OCABR found that less than 3% involved data that was encrypted when breached. In addition, they found 60% of the reported incidents were the result of criminal/unauthorized acts, with a high frequency of laptops or hard-drives being stolen, and that roughly 40% of the total incidents were the result of “employee error or sloppy internal handling of personal information or other data.”

The OCABR report adds, “[t]his confirms that any regulatory regime must include both measures that protect against intentional wrongdoing and measures that focus on establishing internal protocols that set minimum standards for handling sensitive paper and electronic records.” These concerns, and others, lie at the foundation of the adopted regulations.

In sum, the new regulations seek to balance consumer protections with business concerns. Business owners should review the regulations fully as the requirements are comprehensive and may require time and effort to comply with. In addition, there are also extended deadlines and requirements for businesses that contract with third parties. To learn more about identity theft protection, visit the Office of Consumer Affairs and Business Regulation website at www.mass.gov/consumer.

Children Deserve Laws That Protect Them From Online Pedophiles, Not Laws, As Written, That Serve to Invite Them In

The Massachusetts Supreme Judicial Court recently reversed four indictments of Matt H. Zubiel for an attempt to disseminate matter harmful to a minor, under M.G. L. c. 272, § 28, and as defined in M.G. L. c. 272, § 31. Each indictment was based on Internet conversations between Zubiel and an undercover police officer on different days.


Deputy Sheriff Melissa Marino, a member of the "high-tech evidence analysis team" in the Plymouth County sheriff's department, conducted undercover investigations of crimes, including child pornography and child enticement. Marino created an undercover screen name, "Melissa QT 1995 and set up a Yahoo profile describing herself as "Meliss Smith" from the South Shore, age thirteen, and in the eighth grade. Her profile invited others to "PM" her (a form of instant messaging) if they wanted to send her a "private message."
 

On February 8, 2006, Zubiel with a screen name of "Ilikesports04," said, "Hi, how are you?" Marino informed Zubiel she was thirteen years old. He indicated he was age twenty-five. Their first online chat lasted forty-two minutes with Zubiel asking Marino for a photograph.  She emailed him photographs of herself when she was thirteen years old. They discussed where each lived and they gave physical descriptions of themselves. Zubiel asked Marino, "[You] ever fool around with boys?" and other questions regarding what she had done with boys, how old the boys were, and additional details about those events.

A second online conversation occurred on February 13, 2006. Zubiel brought up several intimate topics asking questions about her physical appearance and her sexual experience and requested she send him a nude photograph of herself. Zubiel also asked if she was a police officer, acknowledging that they could get in trouble for what they talked about.
 

The next day, February 14, 2006, Zubiel e-mailed Marino a photograph of himself. Again, they discussed sexual topics online and Marino told Zubiel her mother would be working that weekend and she would be home alone. Zubiel questioned Marino further on her sexual history, telling her he would like to visit and “teach [her] everything."
 

On February 15, 2006, they had an online conversation regarding Zubiel's potential visit. They also spoke on the telephone because Zubiel wanted to make sure Marino was not a police officer. Again they discussed sexual topics, and Zubiel said, "I will show you the right way."
 

The final online conversation occurred two day later on February 17, 2006. Afterwards, Marino telephoned Zubiel (upon his request) and Zubiel said he would visit her the next day. Marino gave him an apartment complex address in Marshfield. The next day, Zubiel telephoned Marino for directions as he was entering Marshfield. Zubiel arrived, began walking toward the apartment building, and was arrested.

Following his arrest, Zubiel reportedly admitted the following: his "screen name" was "Ilikesports04,” he had conducted all of the online conversation with Marino, "it was a possibility that he would have sex with this girl if -- if, indeed, she was a real girl, and that the thought was there for him to have sex with this minor." Zubiel gave the police permission to seize his computer and a forensic examination revealed searches for Marshfield High School, directions to the apartment complex, the profile page of "Melissa QT 1995," the photographs that Marino and Zubiel sent to each other, as well as portions of the online conversations.

So why did the Massachusetts Supreme Judicial Court reverse the indictments? Because online electronically transmitted conversations are not explicitly included under the law’s definitions and the court wasn’t going to update the definitions for the Legislature. Under the law, there are four broad categories of criminally disseminated matter that are covered: 1) any handwritten or printed material; 2) any visual representation; 3) any live performance; and 4) any sound recording. The Court found none of these categories applied in the present case. In sum, this case comes down to a matter of words—words the Legislature should quickly correct.
    
The Court states, “If the Legislature wishes to include instant messaging or other electronically transmitted text in the definition of "[m]atter" […], it is for the Legislature, not the court, to do so.” A footnote indicates the Legislature considered amending the law in 2000 to include computer-generated writing, but it has not acted. The court’s tone here suggests that it’s time for the Legislature to take action. At least, I hope that is the message received.

The Legislature should enact enforceable child privacy protection laws quickly. Updated laws are necessary to combat the growing threats dangerously lurking online. Our advancing Information Age, with its evolving communication mediums, requires modern laws that protect children from online sexual predators. Until then, the existing outdated and technologically silent laws only serve to invite these same predators in, and not guard against them.

See Commonwealth vs. Matt H. Zubiel, Slip Opinion, SJC Docket No.: SJC-10454

Work Emails and Reasonable Expectations of Privacy - Is the Divide Ripening for the Supreme Court

As indicated by my prior posts, You've Got Email, But Is It Private At Work? and Is Einstein Reading Your Email for the Government?, the questions and arguments about privacy and email are heating up.  A recent case in point covered by the ABA Journal in Martha Neal's article, Prosecutor’s E-Mail Sent to His Lawyer on a Work Account is Privileged, Court Says, presents an interesting case. Here Neal reports,

A federal prosecutor's e-mail to his own lawyer is privileged, even though he sent it from work on a government computer, a federal court has ruled.

As pointed out in the article, this is in contrast to similar cases and interpretations. A comparison of this case and the government's arguments reviewed in, Is Einstein Reading Your Email for the Government? shows how the divide in these matters is growing.

Attorney-client privilege is a fiercely guarded area of privacy and this case may present the opportunity for the Supreme Court to reaffirm the attorney-client privilege in the the context of email and the information age. Of course, if taken up, how they go about this could have far wider implications for privacy rights and email communications. If heard, would they focus on the rule (reasonable expectation of privacy) or rather focus on the exceptions or privileges. If examined, will they look at the totality of the circumstances and thus leave the law to be advanced case-by-case as the circumstances come before courts or could they take a more holistic approach that offers guidance in this uncertain arena. Time will tell, but the issue seems to be ripening with each "send" button pressed.

Friend or Foe: Friending Your Bill Collector

An ABA Journal post by Martha Neil, Could Your New Facebook ‘Friend’ Be a Bill Collector? notes there is little regulation of collection practices on the Internet because current laws are focused on traditional technology.

As the number of consumers giving up landlines increases, and while the information age continues advancing, consumer protections will need to continue undergoing changes in order to keep up with the times. The Congressional Findings and Declaration of Purpose found in The Fair Debt Collections Practices Act (PDF) notes:

There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy.

In addition, Subsection (b) adds:

Existing laws and procedures for redressing these injuries are inadequate to protect consumers.

 

Interestingly, consumers are not the only ones who may be interested in reform. Forbes.com posted a letter from the President of a Debt Collection company who also believes reform is needed:

The Fair Debt Collection Practices Act (FDCPA) is over 30 years old and largely regulates communication pertaining to debt collecting. Keep in mind, when FDCPA was crafted over 30 years ago, answering machines were not even used, let alone faxing, e-mailing, texting, etc. ... The FDCPA is in desperate need of being updated

Without clear rules, debt collectors interested in collecting debts ethically will be disadvantaged against those who look to collect consumer debts any way they can, including through abusive tactics. This argument that debt collectors trying to follow the rules should not be prejudiced against those that are abusive is referenced in Subsection (e) of the FDCPA:

 

It is the purpose of this title to eliminate abusive debt col­lection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt col­lection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.

 

With benefits to both consumers and collection companies available by updating collection laws, this should be an area that is ripe for review and change.

Federal law does allow states to impose higher standards than those found in the FDCPA and it will be interesting to see whether legislative changes come from the states or federal government. If neither, then I'd keep an eye on unfair and deceptive trade practices claims, as well as others, to emerge in this area as courts wrestle with trying to fit today's tactics into yesterday's laws.

Is Einstein Reading Your Email for the Government?

Ways may someday be developed by which the government, without removing papers from secret drawers, can reproduce them in court, and by which it will be enabled to expose to a jury the most intimate occurrences of the home. - Justice Louis Brandeis (1928)

A recent ABA Journal article on privacy law (Feds Can Monitor Personal E-Mail Sent Privately to Gov’t Workers, DOJ) began as follows:

You might think that a private-mail sent to another U.S. citizen's personal account isn't subject to government monitoring. But that assumption could be wrong if the recipient is a federal government employee.

Both recipients and senders have no reasonable expectation of privacy if an e-mail is opened by a federal employee logged into a work computer network, according to an Aug. 14 legal opinion from the U.S. Department of Justice that was released Friday.

The Memorandum (PDF file) begins,

Operation of the EINSTEIN 2.0 intrusion-detection system complies with the Fourth Amendment to the Constitution, title III of the Omnibus Crime Control and Safe Streets Act of 1968, the Foreign Intelligence Surveillance Act, the Stored Communications Act, and the pen register and trap and trace provisions of chapter 206 of title 18, United States Code, provided that certain log-on banners or computer-user agreements are consistently adopted, implemented, and enforced by executive departments and agencies using the system. Operation of the EINSTEIN 2.0 system also does not run afoul of state wiretapping or communications privacy laws.

The Memorandum “briefly summarizes the current views of the Office of Legal Counsel on the legality of the EINSTEIN 2.0 intrusion-detection system.” The arguments presented are basically:

  1. There is no "search" under the 4th Amendment;
  2. If there is a "search", then it is reasonable; and
  3. Federal laws trump any state laws.

The central premise of the Memorandum is this, while computer users generally have a legitimate expectation of privacy in the content of Internet communications (such as an e-mail) while it is in transmission over the Internet, the deployment, testing, and use of EINSTEIN 2.0 technology complies with the Fourth Amendment where each agency participating in the program consistently adopts, implements, and enforces the model log-on banner or model computer-user agreements, or their substantial equivalents.

The government's position (which methinks goes too far) is summarized below.

No Search Under the 4th Amendment

The government argues there is no search for Fourth Amendment purposes because “the adoption, implementation, and enforcement of model log-on banners or model computer-user agreements eliminates federal employees’ reasonable expectation of privacy in their uses of Government-owned information systems…."

[Further]… individuals in the private sector who communicate directly with federal employees of agencies participating in the EINSTEIN 2.0 program through Government-owned information systems do not have a legitimate expectation of privacy in the content of those communications provided that model log-on banners or agreements are adopted and implemented by the agency.

… By clicking through the model log-on banner or agreeing to the terms of the model computer-user agreement, a federal employee gives ex ante permission to the Government to intercept, monitor, and search “any communications” and “any data” transiting or stored on a Government-owned information system for any “lawful purpose,” including the purpose of protecting federal computer systems against malicious network activity. Therefore, an individual who communicates with a federal employee who has agreed to permit the Government to intercept, monitor, and search any personal use of the employee’s Government-owned information systems has no Fourth Amendment right against the Government activity of protecting federal computer systems against malicious network activity, as the employee has consented to that activity.

The Memorandum goes on to say this applies even when the email was sent to the employee’s non-governmental or personal account. When the,

sender of an email to an employee’s personal, Web-based email account (such as Gmail or Hotmail) does not know of the recipient’s status as a federal employee or does not anticipate that the employee might read, on a federal Government system, an email sent to a personal email account at work or that the employee has agreed to Government monitoring of his communications on that system. A person communicating with another assumes the risk that the person has agreed to permit the Government to monitor the contents of that communication.

But if it is a "Search," then it's Reasonable anyway

The Memorandum argues, even if EINSTEIN 2.0 operations were to constitute a “search” under the Fourth Amendment, …those operations would be consistent with the Amendment’s “central requirement” that all searches be reasonable [because] the Government has a lawful, work-related purpose for the use of EINSTEIN 2.0’s intrusion-detection system that brings the EINSTEIN 2.0 program within the “special needs” exception to the Fourth Amendment’s warrant and probable cause requirements."

State Privacy Laws vs. The Supremacy Clause

The Memoradum’s final argument is the EINSTEIN 2.0 program does not run afoul of state wiretapping or communication privacy laws due to Supremacy clause.

To the extent that such laws purported to apply to the conduct of federal agencies and agents conducting EINSTEIN 2.0 operations and imposed requirements that exceeded those imposed by the federal statutes discussed above, they would “stand as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress,” and be unenforceable under the Supremacy Clause.

What do you think? Do you buy the argument that if you send an email to a government employee's private gmail or yahoo account, then the government may have the right to read the email?

Preceding the last presidential election, Condoleezza Rice was apologizing to presidential candidates for government intrusions into their private passport records. President Obama, a candidate at the time, called for hearings on the matter. Watergate, Hoover, and McCarthyism should remind us as to what ends government intrusions into personal privacy can have. Deeper historic reflections illuminate this point even more. Benjamin Franklin, offered, "they who would give up an essential liberty for temporary security deserve neither liberty nor security." Of a more local flavor, Boston's Samuel Adams, stated:

Driven from every other corner of the earth, freedom of thought and the right of private judgment in matters of conscience, direct their course to this happy country as their last asylum.

An Act Ensuring Less Privacy of Massachusetts Residents' Data: Part 5 of 5

Massachusetts Senate Bill No. 173 (PDF file or see full text below) introduced this year, would amend M.G.L. 93H and effectively water down the Office of Consumer Affairs and Business Regulation's (OCABR) authority on a few fronts. I've addressed a few of these in past posts.

After a short vacation, today I'll briefly be addressing the fourth proposed change, but more importantly the sum of all the proposed changes, because I fear they fail to protect consumers and their privacy rights, but instead seem very good at protecting certain business interest aided by powerful lobbying efforts

Briefly, under the fourth proposed change, employees could be terminated for willful violations of the law, regulations, or written information security plans.

While I'm not going to attack this language (although you can see the proverbial passing of the buck coming here), it make me ask, "As a group, did any of the four proposed changes help consumers while guarding individuals' privacy rights?"

Let's review a summary of the three changes I've previously discussed:

  1. Businesses would not have to comply with any Massachusetts state regulations with stricter standards than federal law
  2. Ensures OCABR is prevented from requiring specific technology or methods be employed. Thus, the proposed amendment effectively guts OCABR's encryption requirement (and its power to do so in regulations).
  3. The law would not apply evenly, but would depend on the size of the business and require separate standards be promulgated for small businesses, thus implying a person's privacy rights matter less depending on who is allowing them to be infringed upon. This would also add more delay as more layers of regulations are adopted.

The answer to my earlier question, I'm afraid, is a resounding "No," none of the four four proposed changes help consumers while guarding individuals' privacy rights--thus the title of this series of posts, "An Act Ensuring Less Privacy of Massachusetts Resident's Data" which is a play on the proposed act's title "An Act Ensuring the Privacy of Certain Data."

As stated in other posts, privacy rights simply aren't being treated as rights held by individuals but rather as things or issues to be regulated. With economic considerations, lobbying, and political influence guiding the outcome, it appears that short-term economic arguments may continue trumping individuals' privacy concerns. In the end, so long as economic incentives and business interests are placed before individuals' rights, then privacy rights can't really exist, no matter what we call or title them.

The full text of Senate Bill 173, An Act Ensuring the Privacy of Certain Data, is below. Funny, I don't think this is available anywhere else on the web except in PDF. Why is that?

 

SECTION 1. Section 2 of Chapter 93H of the General 1 Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out subsection (a) and inserting in place thereof the following:(a) The department of consumer affairs and business regulation may adopt regulations relative to any person or agency that owns or licenses personal information about a resident of the commonwealth. Such regulations shall be designed to safeguard the personal information of residents of the commonwealth and shall be consistent with the safeguards for protection of personal information set forth in the federal regulations by which the person or agency is regulated. The objectives of the regulations shall be to: insure the security and confidentiality of customer information in a manner fully consistent with industry standards; protect against anticipated threats or hazards to the security or integrity of such information; and protect against unauthorized access to or use of such information that may result in substantial harm or inconvenience to any consumer. The department shall not in its regulations, however, require covered persons to use a specific technology or technologies, or a specific method or methods for protecting personal information.

The regulations shall take into account the person’s size, scope and type 15 of business, the amount of resources available to such person, the amount of stored data, and the need for security and confidentiality of both consumer and employee information. Notwithstanding the rules adopted by the department pursuant to the provisions above, said department shall create separate regulations for small businesses covered by this chapter that reflect said small businesses unique situation and resources.

Any person who is required to comply with federal laws, rules, regulations, guidance, or guidelines safeguarding personal information is deemed to be in compliance with this chapter.

SECTION 2. Section 6 of Chapter 93H of the General Laws is hereby amended by adding at the end thereof the following: A willful violation of this chapter or regulations implementing this chapter, or a written information security plan issued by a person covered by state or federal privacy laws shall provide just cause for the termination of an employee, whether the employee is employed by a private person, public agency or political subdivision of the state.

 

For more posts from this Series see:

If you are interested in tracking Senate Bill 173 or others, perhaps this resource from the University of Iowa law library may be helpful. Here are a few of the helpful offerings or resources available there.

An Act Ensuring Less Privacy of Massachusetts Resident's Data, Part 2 of 5

Massachusetts Senate Bill No. 173 (PDF file) introduced this year, would amend M.G.L. 93H and effectively water down the Office of Consumer Affairs and Business Regulation's (OCABR) authority on a few fronts. I'm taking each one up in a separate post and today, I'll address the first proposed change.

If SB 173 is enacted, businesses would not have to comply with any state regulations with stricter standards than federal law.  While businesses need to comply with federal law, this should not stop states from implementing higher standards to protect their residents. This suggested revision hurts individuals' privacy rights as compliance is limited to the lowest common denominator and doesn't aspire to improve safeguards beyond minimum standards.

While some commentators previously commended MA for leading the way on data privacy protections, this proposal brings us back, at best, to the status quo--a review of data breach news headlines demonstrates the status quo simply isn't working or protecting peoples' privacy. MA has a chance to take the lead in protecting individuals' privacy rights and punting isn't the best option.

In the end, so long as economic incentives and business interests are placed before individuals' rights, then privacy rights are at risk. I hope Massachusetts opts to lead the way on protecting privacy and doesn't adopt the proposed amendment. 

The timing of this proposed amendment baffles me, why gut a law the state legislature passed that hasn't even been given a chance to work?

Next, I'll discuss the data encryption and data protection methods that are being stripped away under the proposed change.

City Says Job Applicants No Longer Asked To Provide Online Account User Names and Passwords

Paul McNamara at Buzzblog posts in Bozeman backs down on demanding passwords that the flood of complaints over Bozeman, Montana's policy of requesting online account names and passwords of potential hires has led to that practice being discontinued. I commented on his blog as it reminded me of the discussion I recently had with a Patriot Ledger's Reporter, Julie Onufrak. During a recent interview, we were discussing the limits of industry self-regulation when it comes to privacy rights and the need for laws that protect them. I don't think self-regulation works when it comes to peoples' rights and whether it's demonstrated by a Sears' settlement or Bozeman's practices, my point is that we need clear laws that protect individuals and their privacy rights.

Here are my comments on buzzblog about the Bozeman situation:

It's good to see the policy change go into effect, but there's always another issue to consider anytime a privacy invasion occurs. What happens to the data that was collected? Recently the FTC entered into an agreement with Sears that required they stop collecting private consumer data in a certain manner, but also that they destroy the data which had been collected that way. This gets even trickier, however, when government agencies are the ones collecting private data as there are Freedom of Information Act and other sunshine laws that can give citizens access to government records. While it's good to see a policy change in Bozeman, it would be even better to see legal standards in place that go beyond self-policing or self-regulation.

To me the unifying theme is one that keeps popping up in privacy issues, if individual privacy rights are not being treated as recognized rights which are held by an individual, then efforts to protect them will fail. In order to protect privacy, bright-line laws giving individuals the right to enforce those rights must to be enacted and not left for government enforcement, but provide private remedies as well. Unfortunately, I don't think government see it that way, FTC Provides Views on Behavioral Advertising to House Subcommittee. I think this is true in Washington and as recent legislative efforts indicate, here in Massachusetts, too--which I'll post about shortly.

Privacy Pollution and Does Privacy Matter?

Does privacy matter? I was recently reviewing excerpts from an earlier interview by International Association of Privacy Professionals with Bruce Schneier where he was asked, "Is privacy the new environmentalism?" Schneier's reply was prescient,

Yes, and data is the pollution problem of the Information Age. Think about it. All computer-mediated processes produce data. Unless dealt with, it stays around. And its after-effects can be pretty toxic. And, just as 100 years ago we ignored pollution in our rush to build the Industrial Age, today we're ignoring data in our rush to build the Information Age. And, I believe, 100 years from now our great-grandchildren will look back at the decisions we made and wonder how we could have been so ignorant and short-sighted.

Anyone who's been on Facebook, reviewed the MySpace postings' cases, or "googled" a job applicant only to be stunned by what they found would have a hard time arguing against Schneier's assessment. But sometimes it's hard to see the forest through the trees, especially when the trees have surveillance cameras and are keeping track of almost everything you are doing.

In a forum post that caught my attention as I browsed my alert feeds tonight, one poster remarked, "Think about it:

  • If you drive to work and use an electronic toll pass it's recorded. All of your stops and even the speed you are going is recorded in a box within the car that can be admissible in court (i.e.; you don't own the data).
  • If you use a computer at work all your emails are recorded and probably the keys you type too.
  • If you're in a secure building your access is tracked and they take pictures too.
  • If you shop and use either a debit, credit or loyalty card your purchases are recorded.
  • Government buildings (and most commercial buildings and stores now) record your presence on cameras and may require ID before you are allowed to enter.
  • If you travel by train, plane or ship your travel is recorded.
  • If you buy drugs at your local pharmacy, it's recorded regardless of whether you use cash or not.
  • If you buy a house, car or anything that requires financing, it's recorded.
  • If you get a paycheck, bank or file a tax return it's recorded.
  • If you give marry, divorce, give birth or die, it's recorded.
  • If you are arrested or convicted it's recorded.
  • Does it not feel a bit like "The Truman Show" already?
  • Now they can aggregate all that information into one place and even produce predictability models on what your future behavior will be.
  • Does it matter?
  • Do you care if your [curious] employer, friends, neighbors or co-workers can pay to find out how much you make, how much you paid for your house, what your political affiliation is, if you're taking paxil or get all the gritty details of your unfortunate divorce or sexually transmitted disease?
  • Do you care if your partner can track your whereabouts?
  • Do you care if the government can track your whereabouts?
  • Do you care if the information is accurate?
  • Maybe it just does[n]'t matter?

The commenter's argument demonstrates it's easy to see protecting privacy rights is an uphill battle, but I'd argue privacy always has and continues to matter. Orwell's 1984, James Joyce in several works, today's movies such as Minority Report or Eagle Eye tap into our worse fears in abandoning privacy and giving up control over our private lives. While these works capture the mind and our attention when examining them, they don't, by themselves, move privacy into the realm of policy, law, and legal protections. This is one reason why I think a Privacy Law and Policy Blog matters, too (and why I've associated both law and policy in this blog's title.) This conversation about privacy isn't new one, however, but it's a conversation which needs to be occurring some place, especially given the speed and economic incentives that today favor weakening individual's privacy protections.

Schneier's environmental analogy is a good one. While the environmental fight is hardly over or been won, it's an example of a movement that has taken years of efforts by many to raise its level of awareness and to work its way into moral, policy, and legal discussions.  While not comparing the two on any substantive level, privacy rights, like environmental rights, seems to have difficult forces working against it today much like the environmentalists have faced for years.  At times it was obvious to see the frustration in Al Gore's efforts to bring the environment front and center, even on cases that just made sense. Privacy rights seem to be facing similar opposition and a misalignment with common sense.

For instance, do we really need laws that allow schools to prevent a parent from being contacted and then allow a school nurse and administrator to strip search a 13 year old honor roll student to see if she has any Ibuprofen in her bra or underwear? This is a recent case before the Supreme Court. During oral arguments on this case, some members of the Supreme Court seemed to dismiss this girl's notion of privacy right's altogether. If this is the state of affairs today, what's going to happen when social network sites, sexting, data breaches, international phishing, and other matters continue to arise. The courts aren't keeping pace with technology or with the way a younger society is living.  In some ways it's ironic that an institution shrouded in privacy misses the public's interest in privacy. Recently in MA, a federal district court judge was told she can't allow a RIA hearing to be streamed live over the internet. The judge wanted to stream the hearing live, but was appealed and told "no."

Technology and the law are not strangers and, again, this debate isn't new, but the blistering pace and extent of changes in today's social communications seems far greater than those occurring before these times--but perhaps the principles being fought for aren't all that new. 

On December 15, 1880 Warren and Brandeis published, The Right to Privacy, in the Harvard Law Review, and wrote

Of the desirability -- indeed of the necessity -- of some such [privacy] protection, there can, it is believed, be no doubt. The press is overstepping in every direction the obvious bounds of propriety and of decency. Gossip is no longer the resource of the idle and of the vicious, but has become a trade, which is pursued with industry as well as effrontery. To satisfy a prurient taste the details of sexual relations are spread broadcast in the columns of the daily papers. To occupy the indolent, column upon column is filled with idle gossip, which can only be procured by intrusion upon the domestic circle. The intensity and complexity of life, attendant upon advancing civilization, have rendered necessary some retreat from the world, and man, under the refining influence of culture, has become more sensitive to publicity, so that solitude and privacy have become more essential to the individual; but modern enterprise and invention have, through invasions upon his privacy, subjected him to mental pain and distress, far greater than could be inflicted by mere bodily injury. Nor is the harm wrought by such invasions confined to the suffering of those who may be the subjects of journalistic or other enterprise. In this, as in other branches of commerce, the supply creates the demand. Each crop of unseemly gossip, thus harvested, becomes the seed of more, and, in direct proportion to its circulation, results in the lowering of social standards and of morality. Even gossip apparently harmless, when widely and persistently circulated, is potent for evil. It both belittles and perverts. It belittles by inverting the relative importance of things, thus dwarfing the thoughts and aspirations of a people. When personal gossip attains the dignity of print, and crowds the space available for matters of real interest to the community, what wonder that the ignorant and thoughtless mistake its relative importance. Easy of comprehension, appealing to that weak side of human nature which is never wholly cast down by the misfortunes and frailties of our neighbors, no one can be surprised that it usurps the place of interest in brains capable of other things. Triviality destroys at once robustness of thought and delicacy of feeling. No enthusiasm can flourish, no generous impulse can survive under its blighting influence.

...

  It would doubtless be desirable that the privacy of the individual should receive the added protection of the criminal law, but for this, legislation would be required. Perhaps it would be deemed proper to bring the criminal liability for such publication within narrower limits; but that the community has an interest in preventing such invasions of privacy, sufficiently strong to justify the introduction of such a remedy, cannot be doubted. Still, the protection of society must come mainly through a recognition of the rights of the individual. Each man is responsible for his own acts and omissions only. If he condones what he reprobates, with a weapon at hand equal to his defence, he is responsible for the results. If he resists, public opinion will rally to his support. Has he then such a weapon? It is believed that the common law provides him with one, forged in the slow fire of the centuries, and to-day fitly tempered to his hand. The common law has always recognized a man's house as his castle, impregnable, often, even to his own officers engaged in the execution of its command. Shall the courts thus close the front entrance to constituted authority, and open wide the back door to idle or prurient curiosity?

I'll end this post (which started off with the intent of being short) with a short Benjamin Franklin quote,

They who would give up an essential liberty for temporary security, deserve neither liberty nor security.

Sometimes Privacy Seems Like the Titanic

I recall a law professor telling me that when the Titanic sank it was lawful to not have enough lifeboats to hold the ships' occupants. I quickly checked on Wikipedia and it states,

The Titanic carried 20 lifeboats with a total capacity of 1,178 people. While not enough to hold all of the passengers and crew, the Titanic carried more boats than was required by the British Board of Trade Regulations. At the time, the number of lifeboats required was determined by a ship's gross register tonnage, rather than her human capacity.

Additional research indicates the Titanic had the potential to carry 48 lifeboats (as suggested by Alexander Carlisle) but cost-cutting resulted in only 20 being carried (albeit still more than the 16 required.) The NY Times headline on April 17, 1912 read, "LIFEBOATS FOR ALL NOT ORDERED BY LAW; Apparent Security of Modern Liners Kept Out-of-Date, Requirements in Force. The first paragraph states,

The disaster to the Titanic may bring about a change in the British Laws establishing the requirements in regard to appliances for the saving of life on modern liners, a development of marine architecture which was apparently not contemplated by those who framed the laws and amended them.

Sometimes privacy law seems like the Titanic to me. A U.S. District Court in the Northern District of California recently held the alleged risk of identity theft is enough to grant standing to an identity theft victim, but that the risk alone is not enough to survive summary judgment.

Joel Ruiz, the plaintiff, filed a complaint for negligence and other theories under California law because Ruiz was one of approximately 750,000 Gap job applicants whose personal information was stored on laptops owned by Vangent (a Gap vendor) which were stolen. In this lost-data case, the court found Ruiz had standing because of his increased risk of identity theft (due to the stolen personal data.) Winning the standing argument, however, proved to be an empty victory as the court found the threat of speculative harm was not enough to proceed under a cause of action for negligence.

While Ruiz has standing to sue based on his increased risk of future identity theft, this risk does not rise to the level of appreciable harm necessary to assert a negligence claim under California law.

While not binding on the court, the court surveyed several similar rulings that it found both persuasive and consistent with its decision:

  • [O]nline applicant whose personal information was compromised had standing to sue ... [but] this compromise of the applicant's personal information did not rise to the level of a compensable injury and damages required ... under Indiana law.
  • Without more than allegations of increased risk of future identity theft, the plaintiffs have not suffered a harm that the law is prepared to remedy.
  • [N]o evidence that this plaintiff's data has been accessed or used by anyone as a result of the theft.
  • [M]ere possibility that personal information may be at increased risk does not constitute actual injury sufficient to maintain a claim for negligence.
  • [W]ithout direct evidence that the information was accessed or specific evidence of identity fraud this Court can not find the cost of obtaining . . . credit monitoring to amount to damages in a negligence claim.
  • [E]xpenditure of time and money monitoring their credit did not establish the essential element of damages.
  • [P]laintiff could not sustain a claim for negligence because he had experienced no instance of identity theft.

Is stolen property not valuable until it's shown someone else is using it to the owner's detriment? Or is it a real loss simply when it's taken, regardless of what the thief does with it? I don't agree that your privacy rights only matter when someone uses it to your proven detriment, to me, one's privacy rights are harmed when someone invades it and takes it, regardless of what they do with it. As long as convenience and commerce trump privacy, however, then privacy is unlikely to be taken seriously by the companies it's entrusted to.

While today much discussion and focus is being placed on notification and encryption legislation (and even these seem to be in retreat), at the end of the day, unless people have rights and laws with some real teeth, privacy will become a topic that gets into papers and perhaps gets you into court, but it's not likely to become a seriously protected or respected right. That is, unless real recovery and damages are allowed under privacy torts. While the government may find ways to collect fees or revenue for large-scale privacy transgressions, the public remains at a collective loss. As our modern travels have taken us from ships at sea and into the "cloud" of computing and data, must the Titanic of privacy rights sink before we protect against foreseeable harm?  The NY Times article of 1912 referenced above stated the following which has an element of timelessness to it,

...there was no pretense of carrying enough lifeboats to save the lives of all if a vessel should go down. The only reason given for this lack of facilities is that the law does not demand it,...

 

Privacy Law and GPS Device Ruling: New York Says Privacy Trumps Tech Based on State Constitution

In NY, there's been some back and forth on the issue, but it now appears the police may not approach your car, attach a GPS tracking device to it, and then monitor your whereabouts without a warrant (unless an exception to a warrant exists.) In Does Technology Have to Trump Privacy Right,Nicole Black previously discussed the recently decided NY case of People v. Weaver (PDF).

Previously in Weaver (decided June 5, 2008) the State of New York Supreme Court Appellate Division [the Appellate division sits below State Court of Appeals] found a vehicle owner's reasonable expectation of privacy was not violated when a GPS device was placed under the bumper of the defendant's van while it was parked on a public street. Data retrieved from the GPS was later used as evidence in Weaver's criminal convictions. See PDF.

Before Weaver, two New York trial courts had heard similar cases with each reaching different conclusions on GPS usage and privacy rights:

  • No requirement to obtain a search warrant before attaching a GPS device to track the movements of a vehicle on public roadway.  vs.
  • In the absence of exigent circumstances, the attachment of a tracking device on the undercarriage of a vehicle is an intrusion requiring a search warrant.

The Weaver case, however, was a case of first impression at the appellate division court and ultimately at the New York State Court of Appeals. In Weaver, the lower appellate division court (now reversed) found a GPS posed no 4th amendment issues based on:

  • There is no expectation of privacy as to the location of a vehicle on public streets;
  • There is no reasonable expectation of privacy in the publicly accessible exterior of one's vehicle;
  • The undercarriage is part of a vehicle's exterior;
  • Collecting information about the movement of a vehicle on public thoroughfares by means of an electronic device attached to a vehicle's undercarriage, which does not damage the vehicle or invade its interior, does not constitute a search or seizure in violation of the Fourth Amendment

Additionally, the reversed appellate division court noted that since visual surveillance could have gleamed the same information, there was no problem in allowing a GPS to accomplish the same.

The New York State Court of Appeal's, however, in a 4-3 ruling reversed the order of the Appellate Division.  Thus, Weaver's motion to supress the evidence obtained from the GPS device was granted and a new trial was ordered. Sewell Chan's New York Times article, Court Strikes Down GPS Tracking Without Warrant covers the recent ruling.

I think the close decision is a sign of the times and that it reflects the uncertainties surrounding technology and protected privacy rights.  In fact, the 4-3 split decision was delivered in three written opinions and the majority did not base its decision under privacy protections afforded under federal law, but instead, on those grounded in state law.

The majority's opinion compared the types of technology involved in Weaver (and its constant invasiveness) versus more limited surveillance technologies used in the past.  I predict this is likely to be a continued theme as more and more cases continue to test the limits of technolgy and privacy's protections.

These prescient questions are not limited to any one jurisdiction. The Weaver majority reviewed other states' laws for guidance on GPS technology:

We find persuasive the conclusions of other state courts that have addressed this issue and have held that the warrantless use of a tracking device is inconsistent with the protections guaranteed by their State Constitutions

While narrowly asserting privacy rights in NY, the majority's opinion expressly leaves open questions of federal law.

In reaching this conclusion, we acknowledge that the determinative issue remains open as a matter of federal constitutional law, since the United States Supreme Court has not yet ruled upon whether the use of GPS by the state for the purpose of criminal investigation constitutes a search under the Fourth Amendment, and, indeed, the issue has not yet been addressed by the vast majority of the Federal Circuit Courts.

I anticipte these federal questions will likely be pressed in time. As for now, in NY and by the slimmest of margins, the majority's opinion held:

  1. There was a search under the New York State Constitution (by using the GPS device); and

  2. The search was illegal because it was executed without a warrant and without justification under any exception to the warrant requirement.

Perhaps technology mustn't trump privacy rights after all...

 

Family Relationship Not Enough for Search or Detention and No Qualified Immunity for Officers if Ignored

A three member U.S. District Appeals Court for the District of New Mexico finds a familial (family) connection to a suspect supports neither probable cause for a search warrant, nor reasonable suspicion for an investigative detention of a relative. Further, officers who get this wrong can't raise "qualified immunity" as a defense in a § 1983 lawsuit.

This case demonstrates the difficulties that often arise between police powers and individuals' privacy rights. Those who favor broader police powers will decry this ruling and argue it will have a chilling effect on law enforcement. Alternatively, others will celebrate a ruling which recognizes individuals' protections from unreasonable search and seizures (due primarily to a familial relationship) and that also gives these rights a civil remedy which has some teeth.

In this case (PDF here), officers obtained a warrant and ordered the search of a murder suspect's in-laws' property. Later, officers also stopped the suspect's sister-in-law in an investigative detention. The court held the officers actions in both cases violated the in-laws' Fourth Amendment rights and ruled,

we hold that a familial relationship is insufficiently particularized to justify invading an individual's reasonable expectation of privacy. ... Applying this rule to the present case, we conclude that the...status as...in-laws, combined with the meager additional facts..., were insufficient to support a finding of either probable cause to search the property or reasonable suspicion to detain [the sister-in-law.]

The officers unsuccessfully argued, in part, the search of the in-laws' property was constitutional because it was authorized by a warrant supported by probable cause. In a 2-1 split, the majority disagreed and found because these Fourth Amendment principles were clearly established, the intrusions were unreasonable. Further, the majority held the officers are not entitled to raise qualified immunity as a defense to the in-laws' civil suit against them. Justice O'Brien, dissenting, stated,

Regrettably, I can find comfort in no part of the majority opinion.

In support of the officers actions, O'Brien argues,

[a] law trained judge found the affidavit sufficient to establish probable cause and issued the warrant....
...
Qualified immunity seeks to...[shield] officers from damages liability for the performance of their discretionary functions so long as their actions are objectively reasonable in light of the clearly established law at the time of their actions....That standard "gives ample room for mistaken judgments," protecting "all but the plainly incompetent or those who knowingly violate the law."

The majority dismissed the dissent's arguments and found the officers could be liable in a § 1983 claim because they had a duty to exercise professional judgment objectively and despite any approval by a judge,

employ[ing] a reasonable process in seeking the warrant" does not relieve officers of their constitutional duty to "exercise their own professional judgment" as to the existence of probable cause.

SUMMARY

U.S. District Appeals Court for the District of New Mexico finds:

  1. "A familial relationship to someone suspected of criminal activity, without more, does not constitute probable cause to search or arrest."

  2. Officers failing to heed this interpretation may be subject to civil liability under a § 1983 lawsuit without the protection of a "qualified immunity" defense.

 

SJC Considering Use of Recorded Jail Calls

The Massachusetts Supreme Judicial Court is expected to hear arguments today on the use of recorded jailhouse calls in the prosecution of John Odgren. Odgren is accused of murdering a 15 year-old student at Lincoln-Sudbury High School. A lower court ruling had excluded tapes of Odgren's jailhouse phone calls which had been obtained by the prosecution through a subpoena. The SJC's opinion could have far-reaching implications in future prosecutions throughout the Commonwealth of Massachusetts.

There are some basic questions the court will need to address. Do MA inmates have a reasonable expectation of privacy in jailhouse phone conversations? What about those who are presumed innocent, but incarcerated while awaiting trial? There are a number of arguments for safety and other reasons that generally support monitoring of inmates calls. See here for some examples. Prosecutors have had access to these recordings for some time. One MA jail administrator testified to receiving about 150 subpoenas for recordings per month. This case also asks, however, should prosecutors first be required to seek a judge's approval to obtain copies of recorded conversations? Or, should jails provide copies of these tapes to prosecutors whenever they receive a subpoena from the D.A.'s office?

The Boston Herald reports in, Court to consider John Odgren’s recorded jail calls,

For more than a decade, inmate phone conversations in Massachusetts have been recorded, and prosecutors have routinely subpoenaed the recordings to use as potential evidence at trial.

But in the Odgren case, Judge Raymond Brassard said that under Massachusetts rules of criminal procedure, prosecutors should have obtained the court’s approval before issuing subpoenas for the recordings. ...

Prosecutors argue Odgren had no "expectation of privacy" because he was well aware of the policy on recording conversations, which is stated in a prerecorded message at the beginning of each call. Odgren also signed a document that informed him that all phone calls and conversations were recorded and monitored. ...

But defense attorneys say the rules of criminal procedure require prosecutors to first convince a judge that the tapes are relevant and admissible as evidence.

Colin Miller, at  The Evidence Prof Blog,  in a  Nov, 2007 post discussed this issue in a case outside of MA where the defendants argued taping the defendant's call violated his Fourth Amendment rights. Miller states,

The problem with this argument, however, is that for Fourth Amendment rights to apply, inter alia, the speaker must have a reasonable expectation of privacy, and most courts have found that no such reasonable expectation exists in outbound calls from prison. See, e.g., United States v. Van Poyck, 77 F.3d 285 (9th Cir. 1996). The prosecutor in the Glover case successfully argued this point and noted that inmates and the people they call are warned each time they speak over a jail telephone line that the authorities are taping the conversation.

While not controlling, previously, this "consent" argument appears in MA, too. In the Norfolk County Superior Court case of Commonwealth v. Deryck Long and Paul Brown a footnote indicates,

Inmates are informed that their calls to those outside the jail are subject to monitoring, so there is no claim that these conversations were improperly intercepted.

The Federal Bureau of Prisons' website records calls and states:

A notice is posted next to each telephone advising inmates that calls are monitored. Unmonitored calls to attorneys are permitted in certain circumstances. Third-party or other alternative call arrangements are not permitted; this ensures inmates do not have the opportunity to use phones for criminal or other inappropriate purposes.

Thus, it seems the practice of monitoring conversations will likely continue to be allowed as prohibitions against this would be a distinct departure from current practices. The question of how prosecutors gain access to these recordings, however, seems to be a trickier question for the court to consider. Further is there a difference between someone already convicted versus someone awaiting trial? Will factors other than one's rights be considered? Given the cuts in budgets, are the administrative costs, time, and resources of additional court proceedings warranted? Especially when various notices indicate the calls are being recorded? I'd bet allowing prosecutors to obtain these recordings through subpoenas will continue, or if court permission is first required, then these requests will most likely be granted routinely.

I assume an argument will likely be made that defense attorneys can seek to have materials ruled inadmissible after disclosure but before trial. I suspect this argument will win the day, but this is only my guess. Nonetheless, prosecutors and defense lawyers across MA will be watching this case closely to see what privacy rights, if any, a jailed person has to their phone conversations and what procedures will be required in future prosecutions.

Other news' posts covering this case include:

Marathon Monday, Patriots' Day, and Privacy Law

Throughout Massachusetts, including Boston where crowds awaited their victors, today is “Marathon Monday,” signifying the running of the Boston Marathon, a challenging race with many individuals striving towards a common goal. 

Through the streets of Boston, some will run fast, some slow. Regardless (or “Irregardless” as is often heard here), the field of runners couldn’t participate unless there was a shared goal and a protected course laid out for their journey. Shouldn’t we aim for the same in privacy law and policy, a shared goal of protecting individual's privacy rights while defending against infringements along our journey?

Society’s direction over the information superhighway, however, is not anywhere nearly as well laid out and organized as the Boston Marathon. While the Internet is a course we are all racing on more and more, law and policy aren’t the ones leading the pack or setting the pace. Rather, a widening gap is developing between the law (looking back over its shoulder of precedent to gage how it’s doing) versus a Web 2.0 world racing ahead under the quickening pace of Moore’s law.

But privacy’s race is not yet lost—individuals’ rights have triumphed before and are the fabric of our democracy. In Boston, today is not only “Marathon Monday,” it is also Patriots’ Day, a day honoring the first battles fought on April 19th, 1975 in Lexington and in Concord. Ralph Waldo Emerson memorialized this day in this stanza with it's famous last line,

By the rude bridge that arched the flood,
Their flag to April's breeze unfurled;
Here once the embattled farmers stood,
And fired the shot heard 'round the world.
In a day when information now travels round the world in an instant, what rights will be secured and which ones might be forgotten?

CIO Experts, Cloud Computing, and Privacy Concerns

Cloud computing (the "cloud") is abuzz in e-commerce and tech circles. The idea of computing online or in the cloud continues to be an emerging trend being watched by many, including leading Chief Information Officers (CIO's).

What, then, do leading IT pro's think about this cloud concept? Julian Goldsmith at silicon.com asks this question of twelve IT experts in, CIO Jury: Cloud under a cloud with IT heads. Her jury of 12 CIO experts voted against employing today’s cloud in their organizations by a vote of 10-2.

Pro cloud arguments offered by her panel include benefits in cost savings, service delivery, infrastructure, and others. Her panel’s opponents of today’s cloud model raised concerns of security, sophistication, and reliability. Regardless of the final vote, this case is not closed and it appears even the cloud’s critics believe operating in the cloud could be the wave of the future. While he voted “no” on the panel, IT Manager, Ben Acheson, discussing the cloud’s potential, said:

Above all it needs to be tried and tested before it will catch on. In the meantime I'm keeping my eye on the technology because in my view it represents the future [.]

Perhaps the only barrier to businesses' ascendancy into the cloud seems to be time. While reliability, sophistication, and innovation are concerns perhaps best left to the free market, should privacy be treated differently? I think so, but I’m concerned our laws may not travel ahead of, or at least alongside, the path technology’s advancements are taking.

Alternatively, privacy concerns run the risk of becoming outweighed by the market and the comparative efficiencies cloud applications could provide. If so, then privacy cases will likely proceed case-by-case in various jurisdictions with disjointed bodies of law emerging.

In the end, if privacy laws (and their penalties) don’t give IT professionals a leg to stand on in prioritizing privacy rights, then perhaps privacy lawsuits, cloud class actions, or other cloud torts will.  I’d argue, however, this is not ideal for businesses or consumers on a number of fronts.