Privacy Update - Carrier IQ Goes to Washington

 Earlier this week Carrier IQ representatives met with officials at the FTC, FCC, and with the staff of a number of Senators. For more details about Carrier IQ please read my eCommerce Times column “Carrier IQ and the US' Escalating Privacy Risk Level.”

The Washington Post reported that Carrier IQ Andrew Coward (senior vice president for marketing) said “This week Carrier IQ sought meetings with the FTC and FCC to educate the two agencies . . . and answer any and all question”…but he was “not aware of an official investigation.” As well, the scope of the privacy controversy has enlarged. In addition to class action lawsuits against Carrier IQ other class-actions have been filed against AT&T, Sprint Nextel, Apple, T-Mobile USA, HTC, Samsung, and Motorola.

Stay tuned for more about Carrier IQ and privacy.

Google Disclaims Any Relation with Carrier IQ

Although Google's Android smartphone operating system has been associated with Carrier IQ, Eric Schmidt (Google's Executive Chairman) told an Internet freedom conference in the Dutch city of The Hague about Carrier IQ that "It's a key-logger, and it actually does keep your keystrokes, and we certainly don't work with them and we certainly don't support it." Reuters reported that Schmidt also said "Android is an open platform, so it's possible for people to build software that's actually not very good for you, and this appears to be one."

You might want to look at Carrier IQ’s website since it has a running log of the number of handsets currently deployed at the moment this blog is written was “141,422,528” and increasing at a rate of 67 handsets per minute (based on my iPhone stop watch). That translates to an amazing increase of 96,480 handsets per day!  Can that really be true?

Carrier IQ’s front page still states that:

Carrier IQ is the leading provider of Mobile Service Intelligent Solution to the Wireless Industry. As the only embedded analytics company to support millions of devices simultaneously, we give Wireless Carriers and Handset Manufacturers unprecedented insight into their customers’ mobile experience.

Seems like status quo for Carrier IQ, but the number of handset appears to be growing very quickly, and Carrier IQ’s response to Senator Franken will be interesting.

What do you think about Carrier IQ?
 

Carrier IQ Captures Cell and Internet Usage from Millions without Approval

A researcher recently found that Carrier IQ software is secretly installed on most modern Android, BlackBerry, and Nokia phones. Android developer’s Trevor Eckert’s 17 minute video demonstrates how that Carrier IQ software is loaded on his phone, cannot be disabled, tracks every keystroke, and sends the data to Carrier IQ.  After receiving this massive data from millions of cell users, Carrier IQ "correlates and aggregates the data for near real-time system monitoring and business intelligence" for phone carriers and manufacturers ostensibily to improve quality.

Eckert demonstrated that Carrier IQ software was logging and potentially transmitting the sensitive information of consumers, including:

  • when they turn their phones on;
  • when they turn their phones off;
  • the phone numbers they dial;
  • the contents of text messages they receive;
  • the URLs of the websites they visit;
  • the contents of their online search queries—even when those searches are encrypted; and
  • the location of the customer using the smartphone—even when the customer has expressly denied permission for an app that is currently running to access his or her location.

As a result Representative Edward Markey (D-Mass.), co-Chair of the Congressional Bi-Partisan Privacy Caucus, sent a letter to the Federal Trade Commission  asking what is being done to investigate.

In addition to Representative Markey’s letter, Senator Al Franken (chairman of the Subcommittee on Privacy, Technology, and the Law) sent his own letter to Carrier IQ which included the following:

I am very concerned by recent reports that your company's software - pre-installed on smartphones used by millions of Americans - is logging and may be transmitting extraordinarily sensitive information from consumers' phones ... It also appears that an average user would have no way to know that this software is running - and that when the user finds out, he or she will have no reasonable means to remove or stop it. ... These actions may violate federal privacy laws, including the Electronic Communications Privacy Act and the Computer Fraud and Abuse Act. This is potentially a very serious matter.

Senator Franken requested that Carrier IQ answer by December 14, 2011.

On December 1, 2011 Carrier IQ issued a press release in which Carrier IQ stated that consumer’s privacy is protected:

Consumers have a trusted relationship with operators and expect their personal information and privacy to be respected. As a condition of its contracts with operators, Carrier IQ operates exclusively within that framework and under the laws of the applicable jurisdiction. The data we gather is transmitted over an encrypted channel and secured within our customers’ networks or in our audited and customer-approved facilities.

Actually Carrier IQ claimed that “Our software makes your phone better by delivering intelligence on the performance of mobile devices and networks to help the operators provide optimal service efficiency.”

This is alarming news and it seems to me we all expect our government to step in to protect consumers’ privacy which seems has been seriously compromised!