June 2010

Class Action Against Apple and AT&T Is Amended

A lawsuit filed on June 9 against Apple and AT&T over the discontinued unlimited-data plan for the iPad 3G has been amended and re-filed to include additional iPad 3G customers.

The suit, presented as a proposed class action lawsuit, currently names three individuals who claim that Apple and AT&T "baited" them into purchasing an iPad 3G with the promises of a flexible unlimited data plan, "only to have that promise reneged upon within weeks of their purchases." The case, filed in the United States District Court in San Jose (CA), represents customers from several different states. One of the lawsuits main contentions involves AT&T and Apple's claim that iPad 3G customers could easily opt-in and opt-out of an unlimited data connection on the iPad 3G without any penalty.

Experts say wiretap law needs update for digital age

The law that governs when the government can intercept digital communications is outdated and badly in need of an update, a panel of experts told lawmakers on June 24. At a hearing in front of the House Subcommittee on Constitution, Civil Rights and Civil Liberties witnesses said Congress needs to update the 1986 Electronic Communications Privacy Act (ECPA), which protects citizens' electronic communications while in transit. Witnesses said the existing law doesn't address location-based mobile services and other newer technologies.

Senate Homeland Security Committee approves cybersecurity bill

On June 24, the Senate Committee on Homeland Security and Governmental Affairs approved a comprehensive cybersecurity bill after amending it to limit the president's authority in the event of a cyber emergency.

The bill, co-sponsored by Sens Joe Lieberman (I-CT), Susan Collins (R-Maine) and Tom Carper (D-Delaware) would make the Department of Homeland Security responsible for protecting civilian networks in the government and private sector. The bill will now head to the full Senate for a vote, where it will likely be merged with other competing pieces of cybersecurity legislation. "These cyber attacks are increasingly more sophisticated, more persistent and more successful," Sen Carper said. "In short -- the status quo is simply not enough." The original bill gave the president indefinite emergency authority to shut down private sector or government networks in the event of a cyber attack capable of causing massive damage or loss of life. An amendment passed Thursday limits that authority further, requiring the president to get Congressional approval after controlling a network for 120 days.

Rural Health Care, Spectrum and Reform on FCC's July Agenda

Here's the tentative agenda for the Federal Communications Commission's July 15 open meeting:

  • Rural Health Care Reform NPRM: A Notice of Proposed Rulemaking initiating reforms to the Universal Service Rural Health Care Fund to expand the reach and use of broadband connectivity by health care providers throughout the nation.
  • Spectrum Flexibility NPRM and NOI: A Notice of Proposed Rulemaking and Notice of Inquiry seeking comment on ways to encourage investment in terrestrial broadband services within spectrum allocated to mobile satellite services, while maintaining robust mobile satellite capability.
  • Electronic Tariff Filing NPRM: A Notice of Proposed Rulemaking seeking comment on streamlining the tariff filing and formatting process by transitioning from paper to electronic filing to reduce industry burden and promote an open, transparent, and efficient flow of information.

FCC Stops Comcast-NBCU Shot Clock Again

The Federal Communications Commission is stopping the shot clock on the Comcast-NBC Universal merger for a second time. June 24 had been day 50 on what is an informal 180-day deadline for vetting the deal.

The review began March 18. The FCC says that the companies returned incomplete answers and did not follow the directions in responding to a May FCC request for a raft of information from both on everything from organizational structure and channel lineups to copies of all programming agreements and detailed discussions of all deliberations in making content available online. The FCC sent letters to the two Thursday, informing them that the FCC would put the brakes on vetting the merger until such time as they had complied fully.

Social Network Bill of Rights

Amid growing controversy over privacy breaches and new marketing initiatives from Facebook and others, the annual Computers, Freedom, and Privacy conference has drawn up a 14-point "Bill of Rights" for social network users.

1. Honesty: Honor your privacy policy and terms of service.
2. Clarity: Make sure that policies, terms of service, and settings are easy to find and understand.
3. Freedom of speech: Do not delete or modify my data without a clear policy and justification.
4. Empowerment: Support assistive technologies and universal accessibility.
5. Self-protection: Support privacy-enhancing technologies.
6. Data minimization: Minimize the information I am required to provide and share with others.
7. Control: Let me control my data, and don't facilitate sharing it unless I agree first.
8. Predictability: Obtain my prior consent before significantly changing who can see my data.

FTC Offers Broad Interpretation Of Its Endorsement Guides

People who endorse marketers for a fee on Twitter could disclose the payment by adding a hashtag like "#paid ad" or "#ad" to their tweets, the Federal Trade Commission said.

That was just one piece of new advice from the FTC about how to interpret its revised guides to testimonials and endorsements, issued last October. The guides are not in themselves enforceable, but indicate the type of activity the FTC will consider deceptive. They specified that bloggers should reveal "material connections" to marketers -- including the receipt of free review copies -- when consumers would be surprised to learn of the connections. This week, the FTC published additional material about the guides, including answers to frequently asked questions. One of the questions addressed concerned how Web users could make adequate disclosures on Twitter, where posts are limited to 140 characters. The FTC suggested using a hashtag like "#paid ad," noting that it only required eight characters. The FTC also reiterated this week that its focus is on advertisers, not bloggers.

To Stem Privacy Abuses, Industry Groups Will Track Web Trackers

A new system to police privacy abuses by companies that track consumers' Web-surfing habits for ad targeting will be launched in coming months by groups whose members include heavy users of this type of information—Internet companies such as Yahoo and Microsoft and advertising companies like WPP.

The system is part of a broader push by Madison Avenue and the Internet industry to develop stricter self-regulation, in part to protect consumers' privacy online. The self-regulatory push is aimed at warding off federal regulation of the $23 billion-a-year online-advertising industry. "What we are really talking about here is trying to make the interactive advertising supply chain much more visible, more transparent to consumers, so that they have a much better ability to understand what is going on, and act on it," says Randall Rothenberg, chief executive of the Interactive Advertising Bureau, a trade group of more than 460 media and technology companies, including Google, Microsoft, Facebook and Yahoo. A coalition of trade groups, including the Council of Better Business Bureaus and Direct Marketing Association trade group, is leading the effort.

EU Panel Rejects Opt-Out For Online Behavioral Advertising

The European Union's data protection authorities released an opinion June 24 declaring that online advertisers who seek to target ads at consumers by tracking their surfing habits must obtain consumer consent before engaging in such practices.

The opinion from the EU's Article 29 Data Protection Working Party, which is made up of data protection officials from the EU's member countries, said firms engaged in online behavioral advertising must abide by EU electronic privacy rules requiring online sites to obtain "informed" consent from users before installing tracking devices such as cookies on Internet users' computers.

Colorado makes big push for telehealth

United Healthcare and Centura Health, Colorado's largest provider, announced the launch of Connecdt Care, which gives patients in four rural communities expanded access to physicians and specialists using telehealth technologies.

Connected Care clinics, which use advanced audio, video and medical technologies to link patients with Centura Health's network of physicians hundreds of miles away, have started providing care at Buena Vista Family Practice in Buena Vista, High Plains Community Health Center in Lamar, St. Vincent General Hospital in Leadville and Rio Grande Hospital in Del Norte. Patients at these four rural facilities will connect with physicians based in Denver, Littleton and Pueblo for routine and specialty care services, creating an experience that feels as real as an in-person consultation.