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  From: <djg2120@columbia.edu>
  To  : <CPC@emoglen.law.columbia.edu>
  Date: Thu, 06 Apr 2006 14:36:18 -0400

[CPC] Government Information Brokers Often Fail To Protect Privacy

Government Information Brokers Often Fail To Protect Privacy

Information resellers often fail to follow privacy protection
guidelines when dealing with the federal government, according to
the GAO.

By K.C. Jones
TechWeb.com

Apr 5, 2006 05:07 PM

Information resellers often fail to follow privacy protection
guidelines when dealing with the federal government, and many do
not believe the guidelines should apply when public records are
involved.

That's the conclusion of a report the Government Accountability
Office released Tuesday. Resellers' adherence to privacy
protections was also the topic of a joint oversight hearing
Tuesday.

The issue gained the attention of the GAO and members of Congress,
in part because of dozens of high-profile data breaches last year,
including one by Choicepoint Inc.

The Privacy Rights Clearinghouse, a consumer advocacy organization,
reported that more than 52 million Americans have had their
personal information jeopardized by data breaches since Feb. 15,
2005, when thieves set up bogus accounts using information obtained
from ChoicePoint. The Federal Trade Commission recorded more than
685,000 consumer fraud and identity theft complaints in its
database in 2005. Thirty-seven percent of all of the complaints
were due to identity theft.

This week's GAO report states that information resellers are in
conflict with fair information practices and other rules outlined
in the Privacy Act of 1974. Those guidelines state that the
collection and use of personal information should be limited.

"Resellers said they believe it is not appropriate for them to fully
adhere to these principles because they do not obtain their
information directly from individuals," the report stated.

"Resellers also limit the extent to which individuals can gain
access to personal information held about themselves as well as the
extent to which inaccurate information contained in their databases
can be corrected or deleted."

Nevertheless, information resellers have taken steps to adhere to
the guidelines, the report stated.

Still, Congress should establish policy to address agency use of
personal information from commercial sources, according to the GAO.

During fiscal year 2005, the Department of Justice, Homeland
Security, the Department of State and the Social Security
Administration reported using personal information from resellers,
mainly for law enforcement and counterterrorism. The information
helped with criminal investigations, witness and fugitive location,
asset identification, prescription drug fraud, immigration fraud and
border screening. The agencies spent about $30 million on contracts
with resellers. About 69 percent of the spending went toward law
enforcement efforts, while 22 percent fell under the anti-terrorism
category.
_____________
Daniel Grimm
djg2120@columbia.edu


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