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From: Asma Chandani <asc2106@columbia.edu>
To : <CPC@emoglen.law.columbia.edu>
Date: Thu, 24 Mar 2005 10:12:21 -0500
Two relevant updates on liability for interception: SPAM and PRIVACY
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Westlaw Citation: 22 No. 21 ANCOMPILR 10
Text Pasted:
March 21, 2005
Spam
EX-AOL WORKER PLEADS GUILTY TO STEALING 92 MILLION SCREEN NAMES
United States v. Smathers
Copyright C 2005 Thomson\West .
A software engineer working for America Online has pleaded guilty to
stealing 92 million e-mail addresses from the Internet service
provider's subscriber list and selling them to spammers.
United States v. Smathers, No. 1:04-mj-0122-UA, plea entered (S.D.N.Y.
Feb. 4, 2005).
Jason Smathers, 24, of Harpers Ferry, W.Va., admitted in the U.S.
District Court for the Southern District of New York that he stole the
information while working at AOL offices in Dulles, Va.
The case is among the first criminal prosecutions under federal
anti-spamming legislation that took effect in 2003. Smathers is facing
up to two years in prison and a fine between $200,000 and $400,000,
according to prosecutors.
The government said Smathers used the identity of another AOL employee
to gain access to the company's database of customer account screen
names. He also gained access to the customers' related ZIP or postal
codes, credit card types, and telephone numbers, prosecutors said.
A second defendant, Sean Dunaway, 21, of Las Vegas, then bought the list
from Smathers and used it to promote his own Internet gambling Web site.
Dunaway also resold the information to other spammers for $52,000 and
later paid Smathers $100,000 for an updated list, according to court
papers.
AOL, owned by Time Warner Inc., first detected the scheme early last
year. The company then passed on the information to the Secret Service.
"We deeply regret what has taken place and are thoroughly reviewing and
strengthening our internal procedures as a result of this investigation
and arrest," AOL spokesman Nicholas Graham said in a statement after
Smathers was indicted last June.
The company added that the customer lists did not include any actual
credit card numbers. Such information, the company said, is kept in a
separate and highly secured database.
AOL has approximately 32 million subscribers worldwide. Many of these
customers have multiple accounts, resulting in the high number of screen
names.
Assistant U.S. Attorney David M. Siegal of New York is prosecuting the
case.
Company: America Online
Company: Time Warner Inc.
Westlaw Citation: 22 No. 21 ANCOMPILR 8
Text Pasted:
Privacy
ONLINE 'SHOPPING CART' PROVIDER SETTLES FTC PRIVACY CHARGES
In re Vision I Props.
Copyright C 2005 Thomson\West .
A company that provides payment services to online merchants has reached
a settlement with the Federal Trade Commission over allegations it sold
information about 1 million Internet shoppers without authorization.
In re Vision I Properties LLC, dba CartManager International, No. 042
3068, settlement announced (F.T.C. Mar. 10, 2005).
According to the FTC, CartManager International will forfeit $9,101 it
made selling the information. It has also agreed to conspicuously inform
consumers that they are submitting their personal information to
CartManager and not to the merchant.
The FTC's administrative complaint said CartManager provides "shopping
cart" software to thousands of online merchants. When those merchants'
customers are ready to pay for their orders, they are taken to a Web
page that includes forms for entering name, address, e-mail address,
credit card number and other information, the complaint said.
While the Web page typically displays the merchant's name and logo,
consumers were really submitting their information to CartManager's
site. Nowhere did CartManager inform customers of this fact or warn them
that their information would be sold or rented to others, the complaint
said.
Some of the merchants that use CartManager have privacy policies in
which they promise not to sell, rent or disclose consumers' information,
the FTC said. CartManager did not inform these customers that use of
their information would be governed by CartManager's policies, not the
merchant's policies, the agency said.
According to the FTC, in addition to the monetary payment CartManager
agreed not to disclose the information it has already collected. The
company also promised to post "clear and conspicuous" disclaimers to
alert customers when they are on a CartManager site and to inform them
their information may be sold or rented to others.
The FTC will decide whether to finalize the settlement after publication
of the agreement in the Federal Register and a 30-day comment period
that will end April 11.
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style=3D'tab-interval:.5in'>
<div class=3DSection1>
<p class=3DMsoNormal><strong><b><font size=3D2 color=3Dblack =
face=3DVerdana><span
style=3D'font-size:9.5pt;font-family:Verdana;color:black;background:white=
'>Westlaw
Citation: 22 No. 21 ANCOMPILR =
10<o:p></o:p></span></font></b></strong></p>
<p class=3DMsoNormal><strong><b><font size=3D2 color=3Dblack =
face=3DVerdana><span
style=3D'font-size:9.5pt;font-family:Verdana;color:black;background:white=
'>Text
Pasted:<o:p></o:p></span></font></b></strong></p>
<p class=3DMsoNormal><strong><b><font size=3D2 color=3Dblack =
face=3DVerdana><span
style=3D'font-size:9.5pt;font-family:Verdana;color:black;background:white=
'><o:p> </o:p></span></font></b></strong></p>
<p class=3DMsoNormal align=3Dcenter =
style=3D'margin:2.25pt;text-align:center;
background:white'><st1:date Month=3D"3" Day=3D"21" Year=3D"2005"><font =
size=3D2
color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;
color:black;background:white'>March 21, =
2005</span></font></st1:date><font
size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;
color:black;background:white'><o:p></o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin:2.25pt;background:white'><span
class=3Ddocumentbody1><font size=3D2 face=3DVerdana><span =
style=3D'font-size:9.5pt'><o:p> </o:p></span></font></span></p>
<p class=3DMsoNormal align=3Dcenter =
style=3D'margin:2.25pt;text-align:center;
background:white'><font size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:
9.5pt;font-family:Verdana;color:black;background:white'>Spam</span></font=
><o:p></o:p></p>
<p class=3DMsoNormal style=3D'margin:2.25pt;background:white'><span
class=3Ddocumentbody1><font size=3D2 face=3DVerdana><span =
style=3D'font-size:9.5pt'><o:p> </o:p></span></font></span></p>
<p class=3DMsoNormal align=3Dcenter =
style=3D'margin:2.25pt;text-align:center;
background:white'><font size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:
9.5pt;font-family:Verdana;color:black;background:white'>EX-AOL WORKER =
PLEADS
GUILTY TO STEALING 92 MILLION SCREEN NAMES</span></font><o:p></o:p></p>
<p class=3DMsoNormal style=3D'margin:2.25pt;background:white'><span
class=3Ddocumentbody1><font size=3D2 face=3DVerdana><span =
style=3D'font-size:9.5pt'><o:p> </o:p></span></font></span></p>
<p class=3DMsoNormal align=3Dcenter =
style=3D'margin:2.25pt;text-align:center;
background:white'><st1:country-region><st1:place><font size=3D2 =
color=3Dblack
face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;color:black;
background:white'>United =
States</span></font></st1:place></st1:country-region><font
size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;
color:black;background:white'> v. <span =
class=3DSpellE>Smathers</span></span></font><o:p></o:p></p>
<p class=3DMsoNormal style=3D'margin:2.25pt;background:white'><span
class=3Ddocumentbody1><font size=3D2 face=3DVerdana><span =
style=3D'font-size:9.5pt'><o:p> </o:p></span></font></span></p>
<p class=3DMsoNormal align=3Dcenter =
style=3D'margin:2.25pt;text-align:center;
background:white'><font size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:
9.5pt;font-family:Verdana;color:black;background:white'>Copyright © =
2005
Thomson\<span class=3DGramE>West .</span></span></font><o:p></o:p></p>
<p class=3DMsoNormal><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;font-family:Verdana;color:black;background:white=
'><br>
<span class=3Ddocumentbody1><font face=3DVerdana>A software engineer =
working for
America Online has pleaded guilty to stealing 92 million e-mail =
addresses from
the Internet service provider's subscriber list and selling them to =
spammers.</font></span><br>
</span></font><st1:country-region><st1:place><span =
class=3Ddocumentbody1><font
size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;color:black'>United
States</span></font></span></st1:place></st1:country-region><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'> v. <span =
class=3DSpellE>Smathers</span>, No.
1:04-mj-0122-UA, plea entered (S.D.N.Y. </span></font></span><st1:date =
Month=3D"2"
Day=3D"4" Year=3D"2005"><span class=3Ddocumentbody1><font size=3D2 =
color=3Dblack
face=3DVerdana><span style=3D'font-size:9.5pt;color:black'>Feb. 4, =
2005</span></font></span></st1:date><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'>).</span></font></span><font =
size=3D2
color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;
color:black;background:white'><br>
<span class=3Ddocumentbody1><font face=3DVerdana>Jason <span =
class=3DSpellE>Smathers</span>,
24, of </font></span></span></font><st1:place><st1:City><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack =
face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'>Harpers =
Ferry</span></font></span></st1:City><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'>, =
</span></font></span><st1:State><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack =
face=3DVerdana><span
=
style=3D'font-size:9.5pt;color:black'>W.Va.</span></font></span></st1:Sta=
te></st1:place><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'>, admitted in the U.S. District =
Court for
the Southern District of New York that he stole the information while =
working
at AOL offices in </span></font></span><st1:place><st1:City><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack =
face=3DVerdana><span
=
style=3D'font-size:9.5pt;color:black'>Dulles</span></font></span></st1:Ci=
ty><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'>, =
</span></font></span><st1:State><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack =
face=3DVerdana><span
=
style=3D'font-size:9.5pt;color:black'>Va.</span></font></span></st1:State=
></st1:place><font
size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;
color:black;background:white'><br>
<a name=3D"SDU_2"></a><span class=3Ddocumentbody1><font =
face=3DVerdana>The case is
among the first criminal prosecutions under federal anti-spamming =
legislation
that took effect in 2003. <span class=3DSpellE>Smathers</span> is facing =
up to
two years in prison and a fine between $200,000 and $400,000, according =
to
prosecutors.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>The government said =
<span
class=3DSpellE>Smathers</span> used the identity of another AOL employee =
to gain
access to the company's database of customer account screen names. He =
also
gained access to the customers' related ZIP or postal codes, credit card =
types,
and telephone numbers, prosecutors said.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>A second defendant, =
Sean Dunaway,
21, of </font></span></span></font><st1:City><st1:place><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack =
face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'>Las =
Vegas</span></font></span></st1:place></st1:City><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'>, then bought the list from <span
class=3DSpellE>Smathers</span> and used it to promote his own Internet =
gambling
Web site. Dunaway also resold the information to other spammers for =
$52,000 and
later paid <span class=3DSpellE>Smathers</span> $100,000 for an updated =
list,
according to court papers.</span></font></span><font size=3D2 =
color=3Dblack
face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;color:black;
background:white'><br>
<span class=3Ddocumentbody1><font face=3DVerdana>AOL, owned by Time =
Warner Inc.,
first detected the scheme early last year. The company then passed on =
the information
to the Secret Service.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>"We deeply regret =
what has
taken place and are thoroughly reviewing and strengthening our internal
procedures as a result of this investigation and arrest," AOL =
spokesman
Nicholas Graham said in a statement after <span =
class=3DSpellE>Smathers</span> was
indicted last June.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>The company added that =
the
customer lists did not include any actual credit card numbers. Such
information, the company said, is kept in a separate and highly secured
database.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>AOL has approximately =
32 million
subscribers worldwide. Many of these <a name=3D"SDU_3"></a>customers =
have
multiple accounts, resulting in the high number of screen =
names.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>Assistant U.S. Attorney =
David M. <span
class=3DSpellE>Siegal</span> of =
</font></span></span></font><st1:State><st1:place><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack =
face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'>New =
York</span></font></span></st1:place></st1:State><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'> is prosecuting the =
case.</span></font></span><font
size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;
color:black;background:white'><br>
<span class=3Ddocumentbody1><font face=3DVerdana>Company: =
</font></span></span></font><st1:country-region><st1:place><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack =
face=3DVerdana><span
=
style=3D'font-size:9.5pt;color:black'>America</span></font></span></st1:p=
lace></st1:country-region><span
class=3Ddocumentbody1><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;color:black'> Online</span></font></span><font =
size=3D2
color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;
color:black;background:white'><br>
<span class=3Ddocumentbody1><font face=3DVerdana>Company: Time Warner =
Inc.</font></span><br
style=3D'mso-special-character:line-break'>
<![if !supportLineBreakNewLine]><br =
style=3D'mso-special-character:line-break'>
<![endif]><o:p></o:p></span></font></p>
</span>
<div style=3D'border:none;border-bottom:solid windowtext =
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windowtext 1.5pt;
padding:0in;mso-padding-alt:0in 0in 1.0pt 0in'><font size=3D2 =
color=3Dblack
face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;color:black;
background:white'><o:p> </o:p></span></font></p>
</div>
<p class=3DMsoNormal><strong><b><font size=3D2 color=3Dblack =
face=3DVerdana><span
style=3D'font-size:9.5pt;font-family:Verdana;color:black;background:white=
'>Westlaw
Citation: 22 No. 21 ANCOMPILR =
8<o:p></o:p></span></font></b></strong></p>
<p class=3DMsoNormal><strong><b><font size=3D2 color=3Dblack =
face=3DVerdana><span
style=3D'font-size:9.5pt;font-family:Verdana;color:black;background:white=
'>Text
Pasted: <o:p></o:p></span></font></b></strong></p>
<p class=3DMsoNormal><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;font-family:Verdana;color:black;background:white=
'><o:p> </o:p></span></font></p>
<p class=3DMsoNormal align=3Dcenter =
style=3D'margin:2.25pt;text-align:center;
background:white'><font size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:
9.5pt;font-family:Verdana;color:black;background:white'>Privacy<o:p></o:p=
></span></font></p>
<p class=3DMsoNormal style=3D'margin:2.25pt;background:white'><span
class=3Ddocumentbody1><font size=3D2 face=3DVerdana><span =
style=3D'font-size:9.5pt'><o:p> </o:p></span></font></span></p>
<p class=3DMsoNormal align=3Dcenter =
style=3D'margin:2.25pt;text-align:center;
background:white'><font size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:
9.5pt;font-family:Verdana;color:black;background:white'>ONLINE 'SHOPPING =
CART'
PROVIDER SETTLES FTC PRIVACY CHARGES</span></font><o:p></o:p></p>
<p class=3DMsoNormal style=3D'margin:2.25pt;background:white'><span
class=3Ddocumentbody1><font size=3D2 face=3DVerdana><span =
style=3D'font-size:9.5pt'><o:p> </o:p></span></font></span></p>
<p class=3DMsoNormal align=3Dcenter =
style=3D'margin:2.25pt;text-align:center;
background:white'><font size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:
9.5pt;font-family:Verdana;color:black;background:white'>In re Vision I =
Props.</span></font><o:p></o:p></p>
<p class=3DMsoNormal style=3D'margin:2.25pt;background:white'><span
class=3Ddocumentbody1><font size=3D2 face=3DVerdana><span =
style=3D'font-size:9.5pt'><o:p> </o:p></span></font></span></p>
<p class=3DMsoNormal align=3Dcenter =
style=3D'margin:2.25pt;text-align:center;
background:white'><font size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:
9.5pt;font-family:Verdana;color:black;background:white'>Copyright © =
2005
Thomson\<span class=3DGramE>West .</span></span></font><o:p></o:p></p>
<p class=3DMsoNormal><font size=3D2 color=3Dblack face=3DVerdana><span
style=3D'font-size:9.5pt;font-family:Verdana;color:black;background:white=
'><br>
<span class=3Ddocumentbody1><font face=3DVerdana>A company that provides =
payment
services to online merchants has reached a settlement with the Federal =
Trade
Commission over allegations it sold information about 1 million Internet
shoppers without authorization.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>In re Vision I =
Properties LLC, <span
class=3DSpellE>dba</span> <span class=3DSpellE>CartManager</span> =
International,
No. 042 3068, settlement announced (F.T.C. =
</font></span></span></font><st1:date
Month=3D"3" Day=3D"10" Year=3D"2005"><span class=3Ddocumentbody1><font =
size=3D2
color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;color:black'>Mar. 10,
2005</span></font></span></st1:date><span class=3Ddocumentbody1><font =
size=3D2
color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;color:black'>).</span></font></span><font
size=3D2 color=3Dblack face=3DVerdana><span =
style=3D'font-size:9.5pt;font-family:Verdana;
color:black;background:white'><br>
<span class=3Ddocumentbody1><font face=3DVerdana>According to the FTC, =
<span
class=3DSpellE>CartManager</span> International will forfeit $9,101 it =
made
selling the information. It has also agreed to conspicuously inform =
consumers
that they are submitting their personal information to <span =
class=3DSpellE>CartManager</span>
and not to the merchant.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>The FTC's =
administrative complaint
said <span class=3DSpellE>CartManager</span> provides "shopping =
cart"
software to thousands of online merchants. When those merchants' =
customers are
ready to pay for their orders, they are taken to a Web page that =
includes forms
for entering name, address, e-mail address, credit card number and other
information, the complaint said.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>While the Web page =
typically
displays the merchant's name and logo, consumers were really submitting =
their
information to <span class=3DSpellE>CartManager's</span> site. Nowhere =
did <span
class=3DSpellE>CartManager</span> inform customers of this fact or warn =
them that
their information would be sold or rented to others, <span =
class=3DGramE>the</span>
complaint said.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>Some of the merchants =
that use <span
class=3DSpellE>CartManager</span> have privacy policies in which they =
promise not
to sell, rent or disclose consumers' information, the FTC said. <span
class=3DSpellE>CartManager</span> did not inform these customers that =
use of
their information would be governed by <span =
class=3DSpellE>CartManager's</span>
policies, not the merchant's policies, the agency =
said.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>According to the FTC, =
in addition
to the monetary payment <span class=3DSpellE>CartManager</span> agreed =
not to
disclose the information it has already collected. The company also =
promised to
post "clear and conspicuous" disclaimers to alert customers =
when they
are on a <span class=3DSpellE>CartManager</span> site and to inform them =
their
information may be sold or rented to others.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>The FTC will decide =
whether to
finalize the settlement after publication of the agreement in the =
Federal
Register and a 30-day comment period that will end April =
11.</font></span><br>
<span class=3Ddocumentbody1><font face=3DVerdana>END OF =
DOCUMENT</font></span></span></span></font><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'><o:p></o:p></span></font></p=
>
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