Schumer Asks FTC to Investigate Unauthorized Copying and Distribution of Private Information

Senator Charles E. Schumer has called for the Federal Trade Commission to launch an investigation into reports that smartphone applications sold on the Apple and Android platforms are allowed to steal private photos and customers address books.

This past week, the New York Times revealed that iPhone and Android applications downloaded by users can actually gain access to a customer’s private photo collection, and in some cases share the information online. This latest report comes on the heels of the discovery last month that applications on Apple devices like the iPhone and iPad were able to upload entire address books with names, phone numbers, and email address to their own servers. In both cases, users were not notified that their private information stored on their phone and or iPad could be copied and used by third party applications.

“When someone takes a private photo, on a private cell phone, it should remain just that: private,” said Schumer. “Smartphone developers have an obligation to protect the private content of their users and not allow them to be veritable treasure troves of private, personal information that can then be uploaded and distributed without the consumer’s consent.”

According to reports by independent technologists, two separate loopholes, one in the Apple operating system and one in the Android operating system, allow apps to gather users’ photos. In the case of Apple, if a user allows the application to use location data, which is used for GPS-based applications, they also allow access to the user’s photo and video files that can be uploaded to outside servers. In the case of Android-based applications, the user only needs to allow the application to use Internet services as part of the app for third parties to gain access to photo albums.

“It sends shivers up the spine to think that one’s personal photos, address book, and who-knows-what-else can be obtained and even posted online – without consent. If the technology exists to open the door to this kind of privacy invasion, then surely technology exists to close it, and that’s exactly what must happen. The rapid innovation in technology, which is wonderful, must not also become an open invitation to violate people’s privacy willy-nilly. When a consumer makes a private phone call or sends a letter the old fashioned way, they have a very reasonable expectation that the communication is private. The same standard must apply to our new technologies, too,” continued Schumer.

Two weeks ago it was revealed that some of the most popular applications for smart phones were routinely collecting personal data from users’ address books, despite policies in place from smartphone makers like Apple that explicitly prohibit such action without the prior consent of the user. After reports revealed this widespread practice, several applications announced they would end the practice. Questions remain, however, over the implementation of security policies employed by smartphone manufacturers and their oversight of applications sold on their platforms.

Schumer today, in a letter to the Federal Trade Commission, called for the agency to launch a comprehensive investigation to explicitly determine whether copying or distributing personal information from smartphones, without a user’s consent, constitutes an unfair or deceptive trade practice. Schumer is also urging the agency to require smart phone makers put in place safety measures to ensure third party applications are not able to violate a user’s personal privacy by stealing photographs or data that the user did not consciously decide to make public.

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Judge Emmet G. Sullivan set the Aug. 17 deadline after granting a joint extension request, according to the court docket. The Atlantic filed its motion to dismiss on July 27.

The Atlantic's April story, "The FBI Director is MIA," reported that Patel drank to excess, missed work, and posed a national-security risk. Patel called it false and sued for $250 million.

"Print it, all false, I'll see you in court—bring your checkbook," Patel told the magazine through his spokesman before it published.

The Atlantic's lawyers argue Patel cannot meet the legal standard required of public officials in defamation cases. That standard — called actual malice — requires proof that a publisher knew a story was false or strongly suspected it was, according to the filing.

"The Complaint does not come close to satisfying this demanding constitutional standard," the filing said. "It does not allege a single fact showing that any statement in the Article is false, much less that Defendants had 'serious doubts' or 'actual knowledge of falsity' for any of these statements."

The filing goes further, arguing Patel's own public behavior undercuts his suit, according to the motion.

"The Article itself shows that the Allegedly Defamatory Statements are not implausible," the filing said, "but rather inherently plausible."

The filing said reporter Sarah Fitzpatrick spoke to more than two dozen sources, according to the motion. They included current and former FBI officials, members of Congress, and hospitality workers.

Six sources confirmed that briefings had to be rescheduled because of Patel's alcohol-fueled nights, the motion said.

Nine sources confirmed he panicked when a computer malfunction led him to believe he had been fired, according to the filing.

The story described officials telling Fitzpatrick that Patel's security detail had difficulty waking him on multiple occasions, and that a request was made for specialized breaching equipment — tools normally used by SWAT teams — because he was unreachable behind locked doors, according to the filing.

The filing noted that Patel's drinking was already a matter of public record before the story ran.

In February, Patel was filmed chugging beer in the U.S. men's Olympic hockey team's locker room in Milan. FBI headquarters was simultaneously managing a cartel violence outbreak in Mexico, CNN reported.

Days after The Atlantic published, a 2005 letter from Patel's Florida Bar application — obtained by The Intercept — disclosed he had been arrested twice on alcohol-related charges, once for public intoxication in 2001 and once for public urination after leaving a bar in 2005.

The story's fallout reached Capitol Hill the following month, according to Senate records.

At a May budget hearing, Patel agreed to take an alcohol use disorders test after Sen. Chris Van Hollen (D-MD) demanded it. Patel called the allegations "a total farce."

The Atlantic suit is the latest in a long line, according to the motion.

A federal judge in Texas dismissed Patel's defamation suit against MS NOW analyst Frank Figliuzzi the day after Patel filed against The Atlantic. The judge called Figliuzzi's comment about Patel's nightclub visibility "rhetorical hyperbole."

None of Patel's five defamation suits has succeeded, according to the filing.

Patel's response is due Aug. 17. The Atlantic's reply is due Aug. 31.

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