NYTimes.com Article: U.S. Calls Release of JetBlue Data Improper

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U.S. Calls Release of JetBlue Data Improper

February 21, 2004
 By MATTHEW L. WALD





WASHINGTON, Feb. 20 - Transportation security officials
violated the spirit of the 1974 privacy act when they
helped a Pentagon contractor obtain computerized passenger
data from JetBlue Airways, the chief privacy officer of the
Homeland Security Department said in a report released on
Friday.

The official, Nuala O'Connor Kelly, did not call for any
firings, reprimands or other punishments. Instead, she
recommended training sessions for the workers involved and
an evaluation of training on privacy issues throughout the
department. She also called for new guidelines for sharing
data and an investigation by the department's inspector
general into whether the workers exceeded the normal scope
of their work.

The finding comes as the Homeland Security Department is
trying to gain support for an extensive new computerized
passenger screening system, intended to pick out who should
be carefully searched at airports. The system has raised
objections from privacy advocates.

In the JetBlue case, Ms. Kelly said, ''we do not have a
privacy act violation because this agency was not the
recipient of the data." She said that the company that
received the data, Torch Concepts of Huntsville, Ala., was
subject to federal privacy rules because it was a
government contractor, but that she had limited her
investigation to her agency.

An assistant to the chairman of Torch Concepts referred
questions to the company's lawyer, who did not return a
call. A call to the public information office of the Army,
which awarded the contract to Torch Concepts, was not
returned on Friday.

JetBlue faces some class-action lawsuits on behalf of its
passengers. And a nonprofit group here, the Electronic
Privacy Information Center, lodged a complaint against the
airline with the Federal Trade Commission, citing deceptive
trade practices.

The complaint also names a contractor for JetBlue, Acxiom.
Torch Concepts paid Acxiom to match the passenger names
with information about each passenger, including sex,
whether the person owned or rented a home, years at current
residence, economic status, number of children, Social
Security number, number of adults in the household,
occupation and vehicles owned, according to Ms. Kelly's
report.

But the data was not diverse enough for Torch Concept's
purpose, according to information gathered by Ms. Kelly.
The company's purpose was to test techniques for spotting
potential terrorists through travel patterns. The data was
obtained soon after the Sept. 11 attacks in 2001.

Torch Concepts approached several airlines, Ms. Kelly said,
but none would provide data without the involvement of a
regulatory agency. So Torch Concepts brought in the
Transportation Security Administration, then part of the
Transportation Department, as an intermediary. The security
agency is now part of Homeland Security.

Ms. Kelly said that to protect privacy, her department
should take "appropriate account of all the promises made
with the data" and thus be involved in any data transfer
that violates the privacy rules of the group that collected
it, including the airlines. "Any parties involved must be
aware of the original covenants, or original promises, that
attach to that piece of data," she said.

At the Electronic Privacy Information Center, Marc
Rotenberg, the executive director, said that Homeland
Security "can't simply be in the see-no-evil mode" and
should not stand by even if other agencies violate privacy
rules.

The JetBlue controversy has emerged as an early skirmish
for a bigger battle, over the Computer-Assisted Passenger
Pre-Screening program, known as CAPPS-2, which is supposed
to help the government identify potential terrorists. The
current system is operated by the airlines on information
they gather, but under CAPPS-2, the airlines would give the
government the names, home addresses, phone numbers and
dates of birth of passengers. The government would give
that to a private contractor, which would use commercial
databases to determine whether the information represented
real identities. Privacy advocates say the system is too
intrusive.

http://www.nytimes.com/2004/02/21/business/21blue.html?ex=1078388782&ei=1&en=57b3ad22409bf2e5


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