NYTimes.com Article: JetBlue Target of Inquiries by 2 Agencies

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



This article from NYTimes.com
has been sent to you by psa188@xxxxxxxxx


/-------------------- advertisement -----------------------\

Explore more of Starbucks at Starbucks.com.
http://www.starbucks.com/default.asp?ci=1015
\----------------------------------------------------------/

JetBlue Target of Inquiries by 2 Agencies

September 23, 2003
 By PHILIP SHENON with JOHN SCHWARTZ






WASHINGTON, Sept. 22 - Two federal agencies announced today
that they had opened investigations into JetBlue Airways in
response to the airline's admission that it had provided
travel records on more than a million passengers to a
Pentagon contractor, violating its own privacy rules.

The moves by the Department of Homeland Security and the
Federal Trade Commission came as JetBlue disclosed that it
had hired Deloitte & Touche, the accounting firm, to review
the company's privacy policies and determine if they needed
to be revamped.

The fast-growing three-year-old airline, which is based in
New York and has worked to build a reputation for bargain
fares and customer-friendly policies, apologized to
customers last week after disclosing that it provided an
Army contractor with more than five million computer files,
reflecting the travel records of 1.1 million passengers in
2001 and 2002.

The contractor, Torch Concepts, based in Huntsville, Ala.,
matched the JetBlue records against another database to
determine the passengers' Social Security numbers,
occupations and family size in an effort to identify
potential terrorists.

Although spokesmen for JetBlue and Torch Concepts have
insisted that the passenger records were never shared with
the government, privacy rights groups have expressed
outrage over the passenger-screening project, describing
the airline's decision to release the data to another
private company as a grave violation of consumer privacy
rights.

The Department of Homeland Security, which assumed
responsibility for airport and airline security earlier
this year, said it would try to determine if any government
officials violated federal privacy laws in helping
coordinate the passenger-screening study conducted by Torch
Concepts.

The department's chief privacy officer, Nuala O'Connor
Kelly, who is conducting the inquiry, said in a telephone
interview that "this is an issue that concerns me and
concerns the department - there was no notice to citizens
or consumers about the use of their data and the sharing of
data."

The Federal Trade Commission said that its investigation
was prompted by a complaint filed today by a privacy rights
organization, the Electronic Privacy Information Center in
Washington, that urged the commission to bring civil
charges against JetBlue for violating its own corporate
privacy rules.

"We take these allegations very seriously and will review
the petition carefully," said a commission spokeswoman,
Claudia Bourne Farrell. "The F.T.C. has been very active in
the area of assuring consumer privacy."

The Army, which hired Torch Concepts as a contractor on the
project last year, said it was also reviewing the issues
raised in JetBlue's admission of privacy violations. "Given
the public interest, and rightly so, we'll be looking into
this," said the spokesman, Maj. Gary C. Tallman.

He said that the Army had wanted Torch Concepts to carry
out a data-mining project to determine how information
analysis could be used to protect military bases from
terrorist attacks.

He said that the contractor decided to test its data-mining
theories by applying them to a large collection of data -
passenger records from a major airline. Spokesmen at Torch
Concepts and the Army said it is unclear why JetBlue was
chosen for the project over other airlines.

In a statement released tonight, JetBlue said that it had
hired Deloitte & Touche "to assist the airline in its
analysis and continued development of its privacy policy."

The airline said it wanted "to let our customers know that
we are fully committed to their privacy." The airline said
that lawyers for Torch Concepts had "confirmed to JetBlue
that no identifiable customer data was released to any
third party, including the Department of Defense or the
Transportation Security Administration, and that all the
data has been destroyed."

An airline spokesman, Gareth Edmondson-Jones, said in an
interview that the airline had not seen the complaint filed
with the Federal Trade Commission and had no immediate
response to the allegations.

He said that in the last few days the airline had received
about 1,500 complaints through e-mail from customers about
the privacy violations, but that there had been no rush of
cancellations or any other discernible effect on the
airline's reservations.

He repeated the company's explanation for its decision to
turn over the passenger data last year, saying the airline
was motivated by patriotism and a concern for the safety of
its passengers in the aftermath of the terrorist attacks on
Sept. 11, 2001.

Spokesmen for Torch Concepts and the Army said Torch was
hired for the data-mining project through a major military
contractor, SRS Technologies of Newport Beach, Calif., a
high-technology engineering company that is helping to
develop the Pentagon's controversial Terrorism Information
Awareness program.

An SRS spokesman said that the Army had introduced SRS to
Torch Concepts last year and had asked SRS to hire the
company as a sub-contractor, a procedure that is not
unusual in military procurement since it eases the
military's bookkeeping when dealing with small companies.

The SRS spokesman said he did not believe that his company
had been fully briefed on the details of Torch's work, nor
had there ever been any connection between Torch's work for
the Army and SRS's work for the Pentagon on the information
awareness project, originally known as Total Information
Awareness.

The project, a legacy of the Sept. 11 attacks, has been
harshly criticized by some lawmakers and by privacy rights
advocates as a dangerous effort to expand government
surveillance of the public in the name of antiterrorism.

In promotional material, Torch Concepts says it specializes
in so-called pattern-recognition technology - specifically,
a system known as Acumen, or adaptive concept understanding
from modeled enterprise networks," which allows patterns to
be detected from mountains of data.

On its Web site, Torch Concepts says Acumen "has been
applied successfully in data-mining applications in the
health care and financial industries." It works, the
company says, through a "unique synthesis of adaptive
neural methods, internal models and fuzzy logic."

http://www.nytimes.com/2003/09/23/business/23PRIV.html?ex=1065325443&ei=1&en=765b64d53603c4af


---------------------------------

Get Home Delivery of The New York Times Newspaper. Imagine
reading The New York Times any time & anywhere you like!
Leisurely catch up on events & expand your horizons. Enjoy
now for 50% off Home Delivery! Click here:

http://www.nytimes.com/ads/nytcirc/index.html



HOW TO ADVERTISE
---------------------------------
For information on advertising in e-mail newsletters
or other creative advertising opportunities with The
New York Times on the Web, please contact
onlinesales@xxxxxxxxxxx or visit our online media
kit at http://www.nytimes.com/adinfo

For general information about NYTimes.com, write to
help@xxxxxxxxxxxx

Copyright 2003 The New York Times Company

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]