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An insurance company seeking to challenge the authority of Canada's privacy legislation and the privacy commissioner in an auto injury case will have to go to the Federal Court to make its case, the New Brunswick Court of Appeal has ruled. In State Farm Mutual Automobile Insurance Company v. Privacy Commissioner of Canada and Attorney General Canada, State Farm argued that Canada's privacy regime does not apply to surveillance tapes the insurer commissioned following a motor vehicle accident in 2005. In March 2005, Jennifer Vetter, insured by State Farm, was involved in a motor vehicle collision with Gerald Gaudet. State Farm subsequently hired a lawyer in anticipation of litigation by Gaudet against Vetter. The insurer also hired private investigators that conducted video surveillance on Gaudet. Gaudet filed a request under Canada's privacy legislation, the Personal Information Protection and Electronic Documents Act (PIPEDA), that State Farm turn over to him the personal information it had compiled, including copies of the surveillance reports and tapes. State Farm went to the New Brunswick Court of Queen's Bench asking for "declaratory" relief on several issues. Among other things, the insurer asked for a court order declaring that PIPEDA did not apply to information obtained in a bodily injury damages claim. It also asked the court for an order confirming that the privacy commissioner had no right or authority to compel State Farm to turn over the documents. The privacy commissioner asked for a stay of proceedings in the New Brunswick court, arguing that the authority of the privacy commissioner was a matter for the Federal Court (which has jurisdiction over federal legislation such as the PIPEDA). The New Brunswick Appeal Court noted both the provincial and federal courts have jurisdiction to hear cases about the constitutionality of federal legislation. But only the Federal Court could determine the outcome of a direct challenge to the authority of the p

Online ad industry will probably continue to be a hot-button if FTC Commissioner Jon Leibowitz is named chairman. The Federal Trade Commission may strengthen its focus on online advertising and privacy if, as is expected, current FTC Commissioner Jon Leibowitz is named chairman of the agency. "He would certainly keep privacy and online advertising as a focus of the FTC, so I think [his potential appointment] does matter," said Mike Zaneis, VP of public policy at the Internet Advertising Bureau. Reports indicate Leibowitz will be named as head of the commission, replacing William Kovacic. Kovacic replaced former Chairman Deborah Platt Majoras in March 2008, when she left to join the private sector as VP and general counsel of Procter & Gamble. "A kind of privacy switch is going to go on at the FTC [once the new chairman is named] and they're going to engage in this issue in a much more serious way," said Center for Digital Democracy Executive Director Jeff Chester. "Under a Leibowitz regime we would get the kind of serious industry analysis that so far has been lacking from the Bush era approach." "Leibowitz has been a leader on privacy issues," said Zaneis, who expects a Leibowitz-run FTC to continue along the agency's current path of pushing for industry self-regulation, rather than creating new regulations for online advertisers. As a commissioner, Leibowitz, a Democrat, has not ruled out FTC regulation of things like behavioral targeting. During a two-day FTC forum held in Washington, D.C. in 2007, Leibowitz noted, "The marketplace alone may not be able to solve all problems inherent in behavioral marketing." He revealed his sense of humor, adding, "If we see problems...the commission won't hesitate to bring cases, or even break thumbs."

Is it a violation of privacy that should be banned or a tool necessary to keep the internet running? Canada's privacy commissioner has opened an online discussion on deep packet inspection, a technology that allows internet service providers and other organizations to intercept and examine packets of information as they are being sent over the internet. "We realized about a year ago that technologies involving network management were increasingly affecting how personal information of Canadians was being handled," said Colin McKay, director of research, education and outreach for the commissioner's office. The office decided to research those technologies, especially after receiving several complaints, and realized it was an opportunity to inform Canadians about the privacy implications. Over the weekend, the privacy commissioner launched a website where the public can discuss a series of essays on the technology written by 14 experts. The experts range from the privacy officer of a deep-packet inspection service vendor to technology law and internet security researchers. The website also offers an overview of the technology, which it describes as having the potential to provide "widespread access to vast amounts of personal information sent over the internet" for uses such as: * Targeted advertising based on users' behaviour. * Scanning for unlawful content such as copyright or obscene materials. * Intercepting data as part of surveillance for national security and crime investigations. * Monitoring traffic to measure network performance.

Privacy rights are accepted and, generally, honored in Europe. The wealth - literally and figuratively - of personal information made available through the internet staggers the imagination. Staggering, too, is the prospect of privacy rights being trampled. EC Consumer Protection Commissioner Meglena Kuneva has a bone to pick with internet snooping. And she's launching an investigation into deep data mining. In an official statement (to be released March 31) she will outline concerns of vague and misleading 'term of use' for access to Web sites that can breach EC privacy rules. Commissioner Kuneva was born and raised in Bulgaria during a time when snooping on people was common, legal and nasty. The European Parliament (EuroParl) voted (March 27) overwhelmingly for recommendations in a report linking data surveillance, advertising and cybercrime. The report recommends safeguards for the privacy rights of internet users. The EuroParl called for "making use of existing national, regional, and international law." The MEPs raised the "imbalance of negotiating power between (internet) users and institutions." Internet users, said the MEPs, have the right to "permanently delete" personal details. Facebook's recent change in 'terms of use' allowing it to retain personal information brought a firestorm of criticism and the social networking portal backtracked. And the EC was watching. "It wasn't regulators who spotted the proposed change of terms at Facebook, it was one of the 175 million users," said Commissioner Kuneva's spokesperson Helen Kearns. Collecting and analyzing profile data is big business. It is "the new petroleum of the Internet world," said Ms Kearns, quoted in PC World (March 30). "If you are happy trading your data that's fine, but you should at least know how valuable it is." As Google and Microsoft have learned European Commission rules, unlike American rules, tend to set a low bar for compliance. The former pr

Facebook has agreed to make changes to better protect users' personal information on the social networking site and comply with Canadian privacy laws within one year, Canada's privacy commissioner said Thursday. "These changes mean that the privacy of 200 million Facebook users in Canada and around the world will be far better protected," said privacy commissioner Jennifer Stoddart.

In order to comply with Canadian privacy law, Facebook must take greater responsibility for the personal information in its care, the Privacy Commissioner of Canada said today in announcing the results of an investigation into the popular social networking site's privacy policies and practices. "It's clear that privacy issues are top of mind for Facebook, and yet we found serious privacy gaps in the way the site operates," says Privacy Commissioner Jennifer Stoddart. The investigation, prompted by a complaint from the Canadian Internet Policy and Public Interest Clinic, identified several areas where Facebook needs to better address privacy issues and bring its practices in line with Canadian privacy law. An overarching concern was that, although Facebook provides information about its privacy practices, it is often confusing or incomplete. For example, the "account settings" page describes how to deactivate accounts, but not how to delete them, which actually removes personal data from Facebook's servers. The Privacy Commissioner's report recommends more transparency, to ensure that the social networking site's nearly 12 million Canadian users have the information they need to make meaningful decisions about how widely they share personal information.

As if you needed another sign that times are tough, here's a fairly reliable measure: The number of cases handled by the advertising industry's best-kept secret -- self-regulation -- are on the rise. Last year the National Advertising Division of the Council of Better Business Bureaus handled 214 cases, up 22% from 2007. And in 2008 ad challenges, in which one advertiser challenges a competitor's claim, rose 31% to 81 cases. Why the increased activity? It's a deadly fight for share of market out there, and in down times advertisers tend to revert to hard-hitting comparative advertising. NAD's purpose is to substantiate these kinds of attack ads, and it can do it faster and cheaper than litigation can. The Federal Trade Commission seems to like the idea of letting advertisers settle their own disputes. When the National Advertising Review Council, the body that sets the policies and procedures for the NAD to enforce, started 38 years ago, then-FTC Chairman Bob Pitofsky wasn't an early convert. "If the truth be known," he said 10 years ago, "there was some skepticism about how the whole thing would work. The FTC had been burned time and time again by unkept promises of self-regulation by other industries. But this group has proved the skeptics wrong. Today, advertising has the best self-regulatory system of any industry in the country." The outgoing chairman of the FTC, William Kovacic, is also a fan. But the current crop of FTC commissioners don't seem as convinced, although they seem somewhat willing to give self-regulation a chance. In issuing guidelines for online behavioral advertising, FTC Commissioner Jon Leibowitz said the industry needs to do a better job of "meaningful, rigorous self-regulation, or it will certainly invite legislation by Congress and a more regulatory approach by our commission."A joint industry task force quickly seized on that statement as an endorsement for self-regulation, and said it supported FTC's goal of a "comprehensive and eff

Canadians who travelled to the United States in 2008 are being advised to check their credit-card statements and watch for signs of identity theft after a massive security breach at a U. S.-based company that processes millions of credit cards. Canada's Privacy Commissioner said yesterday she was shocked to learn that New Jersey-based Heartland Payment Systems, which processes credit-card transactions for more than 250,000 businesses in the United States, had found "malicious software" in its operating system. "I'm amazed to see something this significant can still happen with the importance that not only privacy commissioners, but experts everywhere, are placing on security," Jennifer Stoddard said. "I was concerned to see this going on and the size of it." Tech experts say the hack could be one of the largest ever credit-or debit-card data breaches, and that Canadians should watch closely for signs of identity theft.

Three out of four Americans believe that individuals are responsible for protecting their own privacy online. That's the bottom line of a new survey conducted by TRUSTe, a company that certifies the compliance of websites with privacy standards and statements. Nonetheless, The New York Times reports that the Federal Trade Commission is trying to put more responsibility on website operators: Last month, the F.T.C. revised its suggestions for behavioral advertising rules for the industry, proposing, among other measures, that sites disclose when they are participating in behavioral advertising and obtain consumers' permission to do so. One F.T.C. commissioner, Jon Leibowitz, warned that if the industry did not respond, intervention would be next. "Put simply, this could be the last clear chance to show that self-regulation can -- and will -- effectively protect consumers' privacy," [FTC commissioner Jon] Leibowitz said, or else "it will certainly invite legislation by Congress and a more regulatory approach by our commission." Behavioral advertising, which records individual users' Web usage by inserting cookies into their browsers and keeping a log of where they go and what they do, is the most high-profile privacy issue today. Google-owned DoubleClick is tracks Web users across many sites, combining them into one profile at DoubleClick's end to be used for ad targeting. Some survey respondents use cookie-deleting browsers and anonymizing software to thwart tracking systems. Privacy advocates, TRUSTe, and the FTC all strongly encourage companies to post meticulous privacy statements for online visitors, and to follow them to the letter. Still, only 15 percent of TRUSTe's survey respondents said they actually read privacy statements.

WASHINGTON -- Few tech policy debates are plumped up with more rhetoric than those concerning Net neutrality and privacy restrictions for advertisers. It should be a noisy year at the Federal Communications Commission. Here at the Cable Show, the annual conference hosted by the National Cable and Telecommunications Association, advisors to the three current commissioners outlined some of the simmering issues that are likely to boil up at the FCC this year, and those two are on the short list. Rick Chessen, acting chief of staff for interim FCC Chairman Michael Copps, said the agency could move toward adding to its Internet policy statement a fifth principle that would explicitly bar ISPs from discriminating against certain traffic on their networks. "The principle would be one of nondiscrimination, but you would recognize the need for reasonable network management," Chessen said. The FCC's broadband principles comprised the policy document that was at the center of last year's action against Comcast, where the agency found that the cable giant had unfairly blocked peer-to-peer traffic on its network without notifying its subscribers it was doing so. The new principle Chessen suggested would seek to clarify the agency's stance against the selective blocking of traffic. Comcast is challenging last year's ruling in a court case where the outcome could broadly shape how Congress proceed with Net neutrality policy. Rosemary Harold, the legal advisor to Republican Commissioner Robert McDowell, said her boss is more cautious than the two Democrats on the matter.

The authorities in Brussels fired a warning shot across the bows of online advertisers today, signalling new rules to combat surfer profiling and breaches of privacy in the interests of commercial gain. In the strongest denunciation of the conduct of online advertisers, Meglena Kuneva, the European commissioner for consumer affairs, argued that personal data has become "the oil of the internet and the new currency of the digital world". She warned that surfers' privacy rights were being abused by the amassing of personal information and its supply to advertisers who targeted individuals who were often unaware of what was happening. "From the point of view of commercial communications the world wide web is turning out to be the world wild west. This could be very damaging," Kuneva told a meeting of industry professionals and analysts in Brussels. "Consumer rights must adapt to technology, not be crushed by it. The current situation with regard to privacy, profiling, and targeting is not satisfactory." The commissioner outlined European laws regulating the protection of privacy, commercial contracts, and countering discrimination, and indicated that the regulations were failing to keep up with the pace of developments on the internet. She called on the online advertising industry to come up with a voluntary code of conduct to protect consumer and privacy rights, but clearly signalled that the EU authorities would probably have to legislate to prevent abuses. The volume of personal data collected on the internet was growing exponentially and was increasingly being used for commercial purposes by tracking surfers' browsing habits, using cookies, and making the information available for individual profiling and targeting of consumers, she said.

The head of Calgary's Drop-In Centre says he is astounded by the controversy surrounding the shelter's use of a handprint-based security system, with the latest salvo coming from the province's privacy commissioner on Friday. "People . . . have no idea what we're going through here,"said the centre's executive director Dermot Baldwin, adding he now has three staff off work because of beatings. "We're going to (take) the measures necessary to make this place safe, secure, a good place to come . . . but in order to do that, I've got to keep the bad guys out." The comments came after Alberta's privacy commissioner said he's concerned about a new security system the Drop-In Centre is testing, which includes the scanning of clients' handprints to confirm their identification. Frank Work said Friday the home-less shelter's system of scanning and collecting handprints will likely lead to the creation of a database that will store that information.

A privacy and consumer protection expert in the North Carolina attorney general's office and an Hispanic ally of President Barack Obama are being considered for the Federal Trade Commission, according to antitrust sources with knowledge of the administration's thinking. The five-person commission, which shares antitrust duties with the Justice Department and oversees consumer issues, has been short one commissioner since Deborah Majoras resigned in March 2008. The term of a second commissioner, Pamela Jones Harbour, ends this month. Harbour, an independent, has told the White House that she would like to remain in place but this is unlikely, according to the antitrust sources. Two women are under consideration for the FTC, the sources told Reuters. Julie Brill, North Carolina's senior deputy attorney general and chief of consumer protection, previously worked in the Vermont Attorney General's consumer protection and antitrust divisions.

"Lora Bentley spoke with Anzen analysts Megan Brister and Jordan Prokopy via e-mail regarding behavioral advertising - what companies are doing, what regulators want to do and what we, as advertising consumers, need to know. With their coworker Miyo Yamashita, the analysts recently wrote a guest opinion for IT Business Edge. Bentley: Why are so many concerned about privacy when it comes to behavioral advertising? What is it about the Internet that convinces consumers that information they share there is not being used? Brister and Prokopy: Most concerns stem from the lack of transparency around data disclosure practices. While consumers may value a Web site's product and service offerings, they are generally unaware that businesses share their information with an extensive group of other businesses in order to deliver targeted advertising. This group includes news Web sites, advertising networks, profiling services, and Web analytics providers, to name a few. As Pamela Jones Harbour, a Commissioner at the Federal Trade Commission (FTC), discussed at the FTC Roundtable earlier this week, there is an asymmetry between consumer perceptions and business realities. Once consumers are informed of businesses' data handling practices, they will want to have more control over how businesses manage their information. As we discuss in our article, some businesses engaged in online behavioral advertising have been slow to adopt transparent consumer data management policies. This is a concern particularly for vulnerable groups, such as minors or non-English speaking consumers, because they may not understand legally written policies. Consumer advocacy groups argue that without knowledge and control over the collection, use, and disclosure of data, Web sites may misuse or expose sensitive data about consumers' health, lifestyles and finances."

"A federal law designed to prevent employers and health insurers from discriminating against an individual based on their genetic predisposition to disease took effect late last month, signaling a new era where intermingling genetic advances and privacy concerns create new challenges in health care. But left out of the federal Genetic Information Nondiscrimination Act, commonly known as GINA, were privacy protections for individuals seeking long-term care, disability and life insurance coverage. Each of those areas was left up to the individual states. At least 10 states regulate the use of genetic information in long-term care insurance. But in California, privacy protections were left to expire by lawmakers in January 2008. Mark Billingsley, spokesman for state insurance commissioner Steve Poizner, said in an e-mail that there "appears to be a giant loophole" in California's insurance code regarding long-term care insurance and genetic privacy protections. He said he couldn't identify a single provision in the state code that would preclude a private insurer from requesting such a test for underwriting purposes. "

The European Commission threatened Britain with sanctions on Tuesday for allowing an Internet service provider to use a new advertising technology to track the Web movements of customers. The European telecommunications commissioner, Viviane Reding, said that use of a tracking tool created by Phorm violated European privacy laws. The country's largest service provider, BT, acknowledged last April that it used the tool without customers' consent in 2006 and 2007, Ms. Reding said. "European privacy rules are crystal clear: a person's information can only be used with their prior consent," Ms. Reding said. The case could become a test for the limits of ads that aim at online behavior. Supporters of the practice say it has the potential to transform advertising by allowing marketers to show Internet users only ads that are considered relevant to them, based on their surfing habits.

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The European Commission started legal action against Britain on Tuesday for what the EU executive called a failure to keep people's online details confidential. EU Telecoms Commissioner Viviane Reding said the action related to how Internet service providers used Phorm (PHOR.L) technology to send subscribers tailor-made advertisements based on websites visited. Reding said Internet users in Britain had complained about the way the UK applied EU rules on privacy and electronic communications that were meant to prohibit interception and surveillance without the user's consent. "Technologies like Internet behavioural advertising can be useful for businesses and consumers but they must be used in a way that complies with EU rules," Reding said in a statement. "We have been following the Phorm case for some time and have concluded that there are problems in the way the UK has implemented parts of the EU rules on the confidentiality of communications," Reding said. She called on Britain to change its national laws to ensure there were proper sanctions to enforce EU confidentiality rules. Unless Britain complies, Reding has the power to issue a final warning before taking the country to the 27-nation EU's top court, the European Court of Justice. If it rules in favour of the European Commission, the court can force Britain to change its laws. (Reporting by Huw Jones, editing by Dale Hudson)

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There is no denying that Google is a giant success. But its size has made the "do no evil" mantra all the more difficult for it to follow - and for some of us to believe. Lately, it seems every new release and every new decision draws the ire of someone, be it politicians, privacy campaigners, or even villagers. While the Google brand is certainly in better shape than many tech firms, its constant moves to control more and more of our data and information has some up in arms. Privacy Three recent announcements have drawn the attention of privacy campaigners in the UK - Latitude, Street View, and behavioural advertising. Latitude is Google's mobile tracking system. Sign up for it, add your friends, and you can all see exactly where each other is via your mobile phone signal pinpointed on a Google map. Handy if you're bored and want to know who's out and about, but the location tracking system could be frightening for a host of other reasons, some say. Last month, Liberal Democrats Home Affairs spokesman Tom Brake filed an early day motion (EDM) asking the government to look into Latitude. Brake said: "This system poses an insidious threat to our hard-won liberties. 24-hour surveillance and a Big Brother society are new realities." But the heat was off Latitude after Street View was unveiled in the UK. The photo mapping system features street-level photos of 25 cities, offering a virtual tour of places such as London, Manchester and more. But some people aren't so happy having their homes, cars and selves photographed and mapped - even with face and number plates blurred. The backlash didn't take long to start. Within a day, Privacy International was on the case, asking the Information Commissioner to shut the site down.

Laws in Canada and other countries are increasingly helping technology force people to identify themselves where they never had to before, threatening privacy that allows people to function effectively in society, a new study has found. "What we're starting to see is a move toward making people more and more identifiable," University of Ottawa law professor Ian Kerr said Wednesday. His comments followed the launch of Lessons from the Identity Trail: Anonymity, Privacy and Identity in a Networked Society, a book summing up the study's findings, at a public reading in downtown Ottawa hosted jointly with the Privacy Commissioner of Canada. Kerr led the study with University of Ottawa criminology professor Valerie Steeves. They collaborated with 35 other researchers in Canada, the U.S., the U.K., the Netherlands and Italy. The researchers reported that governments are choosing laws that require people to identify themselves and are lowering judicial thresholds defining when identity information must be disclosed to law enforcement officials. That is allowing the wider use of new technologies capable of making people identifiable, including smartcards, security cameras, GPS, tracking cookies and DNA sequencing. Consequently, governments and corporations are able to do things like: * Embrace technologies such as radio frequency identification tags that can be used to track people and merchandise to analyze behaviour. * Boost video surveillance in public places. * Pressure companies such as internet service providers to collect and maintain records of identification information about their customers. While Canada, the U.K., the Netherlands and Italy all have national laws protecting privacy - that is, laws that allow citizens to control access to their personal data - such legal protection does not exist for anonymity, Kerr said. "Canada is quite similar [to other countries] with respect to anonymity. Namely, it's shrinking here just as it is there.

The Office of the Privacy Commissioner of Canada (OPC) has developed these guidelines to explain how the Personal Information Protection and Electronic Documents Act (PIPEDA) applies to transfers of personal information to a third party, including a third party operating outside of Canada, for processing. As the legislation itself states, PIPEDA is intended to "support and promote electronic commerce by protecting personal information that is collected, used or disclosed in certain circumstances…" This acknowledges that proper protection of personal information both facilitates and promotes commerce by building consumer confidence. Today's globally interdependent economy relies on international flows of information. These cross-border transfers do raise some legitimate concerns about where personal information is going as well as what happens to it while in transit and after it arrives at some foreign destination. Consumer confidence will be enhanced, and trust will be fostered, if consumers know that transfers of their personal information are governed by clear and transparent rules. There are different approaches to protecting personal information that is being transferred for processing. European Union member states have passed laws prohibiting the transfer of personal information to another jurisdiction unless the European Commission has determined that the other jurisdiction offers "adequate" protection for personal information.