Tuesday, April 3, 2012

ACLU: Police request cellphone records without warrants

1 day

Virtually all of the 200 law enforcement agencies that responded to public records requests filed by the ACLU track cellphones without warrants, with several falling far short of probable cause, according to a new report.?

The report comes as the intersection between technology and privacy reaches a crescendo. Concerns over Google's new privacy policy, recent tracking software and Facebook's Timeline are making many Americans squirm over the invasiveness of the sites and devices that define our lives. It's apparent law enforcement -- usually in the pursuit of ?investigations, mind you -- can and will find out who you are and where you are if they need to, as anyone who watches any TV crime procedural knows is par for the course.

It's been about a year since the last major dustup over cellphones and privacy, when surreptitious location tracking on mobile devices stirred Congress into action, prompting even Steve Jobs to respond to the allegations.

More recently, the presence of the Carrier IQ tracking software on many cellphones has sounded panic bells among privacy advocates, leading to a proposed cellphone privacy bill. The ACLU filed nearly 400 requests under freedom of information laws in the fall asking state and local agencies about "policies, procedures and practices for tracking cellphones."

In a statement, the ACLU said:

The responses varied widely, and many agencies did not respond at all. The documents included statements of policy, memos, police requests to cell phone companies (sometimes in the form of a subpoena or warrant), and invoices and manuals from cell phone companies explaining their procedures and prices for turning over location data.

But, the report shows the vast majority of the agencies from 20 states responded that they did engage in some kind of cellphone tracking, with New Jersey and North Carolina responding with the most instances. Only 10 agencies reported that they did not track cellphones.

In?Chatham County, North Carolina, law enforcement practices "real-time GPS tracking of cell phone on 'reasonable suspicion' standard," including other numbers tied to their targets.?

Catherine Crump, staff attorney for the ACLU Speech, Privacy and Technology Project, told msnbc.com of some of the more egregious findings:

We discovered that police in Cary, N.C. requested from Sprint a list of all phones that had used a particular tower -- meaning they were obtaining sensitive information about many people they had no reason to suspect were involved in a crime. ?We also discovered that several agencies deliberately try to keep secret the fact that they engage in cell phone tracking. An Iowa City police training manual instructs officers, "Do not mention to the public or the media the use of cellphone technology or equipment used to locate the targeted subject," and also advises officers to keep that information out of police reports. ?Finally, some police departments find this information so valuable that they have purchased their own cell phone tracking equipment. ?Police in Gilbert, AZ, for example, spent $244,000 on cell phone tracking equipment.

At the opposite end of the spectrum are the officers in Lexington, Kentucky: "In regard to the acquisition of cell phone location records, data, and/or information, such?items can be obtained only with a search warrant."

While the ACLU found "most law enforcement agencies that responded engage in cell phone tracking for investigative purposes," other agencies tracked the devices for other purposes, such as locating missing persons.

The report also found how compliant major carriers were to law enforcement requests, and how "there are hundreds of invoices from mobile carriers to law enforcement agencies that contain pricing data."

One example from Tuscon, Arizona shows "T-Mobile charges $150 for one hour's worth of data about what phones were?near one particular tower," while other documents uncover charges of $30 to $60 from Verizon Wireless for "15 minutes worth of tower data."

Documents from local law enforcement, such as the Bellevue Police Department near Seattle, reveal requests to carriers made through "911 Exigent Circumstances" form that covers suicide attempts, missing pesons, assaults and other instances where "one or more people face immediate danger of death or serious bodily injury." While they can request historical information -- and some departments do -- in Bellevue at least they stick to current subscriber and billing information, as well as real-time data in locating the number in question.

Mobile carriers are also retaining user information for months, even years, with Verizon keeping location records for "one rolling year," while "T-Mobile keeps them for 'officially 4-6 months, but really a year or more.'" Sprint holds onto them for 18-24?months and AT&T "since July 2008."

Crump told msnbc.com that the ACLU has "not aggregated the amount of money that mobile carriers have received nationally from law enforcement through the disclosure of location records. It is likely, however, that this number is substantial."

As for responses to the report, Crump said, "So far, we haven't heard of any agencies changing their standards for cellphone tracking. Although the state of the law is confused, and each police department seems to have its own standards for when and how to engage in this tracking, we're not aware of any agencies rethinking their policies in light of our inquiries. Many agencies have refused to give us any information about their use of cellphone tracking, claiming the public records laws exempt them from having to disclose this information."

That's where the ACLU differs from law enforcement, as Crump told us:

The public has the right to know under what circumstances their local police are tracking cellphones. Location information is sensitive, and can paint an intimate portrait of someone?s life. It can reveal their daily routine, and deviations from that routine. It can reveal where a person goes to the doctor, who his or her friends are, and what political or civic organizations he or she patronizes. This isn?t the sort of information law enforcement agents should be collecting without the safeguard of going to a judge and proving to that judge that there is a good reason to believe that a search will turn up evidence of a crime.

In a statement, the ACLU said it:

supports bipartisan legislation currently pending in both the House of Representatives and the Senate that would address this problem called the Geolocation Privacy and Surveillance (GPS) Act. It would require law enforcement officers to obtain a warrant to access location information from cell phones or GPS devices. It would also mandate that private telecommunications companies obtain their customers? consent before collecting location data. At least 11 state legislatures are also considering bills related to location tracking.

It also provides an interactive map of the agencies and their responses. Clicking on the map opens up links to the documents, so you can check out what's going on in your own backyard, if local law enforcement in your area was part of the records requests.

Check out Technolog on?Facebook, and on Twitter, follow?Athima Chansanchai, who is also trying to keep her head above water in the?Google+?stream.

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Primary Primer: Wisconsin, Maryland and DC

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Groupon says 4th-quarter was weaker than reported

PORTLAND, Ore. (AP) ? Groupon Inc. said Friday that its fourth-quarter loss was wider than initially reported because it needed to increase the amount of money it sets aside for refunds.

The disclosure weakened the company's first quarterly report since it went public in November, which already had disappointed investors, and added to its list of fumbles.

Groupon prominently promises to refund money to any user unhappy with a deal, an important part of its business model that has made it so popular. The need for the revision, however, indicates it might not have the controls in place to adequately keep up with its own success.

Groupon said that it was selling online deals at higher prices during the period. and that put it on the hook for larger refunds. The revision lowered the company's quarterly revenue by $14.3 million and widened its loss by $22.6 million, or 4 cents per share.

The company originally reported in February a surprise loss of $42.7 million, or 8 cents per share, for the period. It said at the time that its revenue nearly tripled to $506.5 million from the same quarter a year earlier.

Groupon's auditor Ernst & Young also flagged a weakness in the company's internal controls over its financial statement for the period in a regulatory filing Friday.

Groupon said it is working to identify and address the underlying causes and said it may have added expenses to solve the problem, including the cost of hiring more financial staff for the quickly growing company.

The company's shares plunged in after-hours trading on the news.

This is not the first time Groupon has struggled to get its financial reporting in order. The company faced federal scrutiny before its initial public offering for the way it accounted for revenue.

Groupon makes money by sending out frequent emails to subscribers offering a chance to buy discount deals for anything from manicures to ballroom dance lessons. The company takes a cut of what people pay and gives the rest to the merchant.

The company used to report all of its gross billings, not just the money it gets to keep, as revenue. After federal regulators questioned the practice, Groupon submitted new documents in September that showed that net revenue in the first half of 2011 was about half of what it originally reported.

The company's rapid growth, financial reporting difficulties, high marketing expenses and enormous employee base have caused some IPO experts to compare its ascent to the late 1990s tech boom ? and bust.

Groupon has failed to impress investors since its market debut. It started strong, pricing above expectations at $20 and raising $700 million in its offering. Its shares soared 31 percent in its first day of trading, closing at $26.11. It has fallen 30 percent since then, closing regular trading Friday at $18.38.

The company has struggled with intense competition from other daily deal sites and complaints by merchants after they've been overwhelmed by customers using, and sometimes abusing, the company's offers.

Groupon also issued a more modest growth forecast for its first quarter as the number of subscribers signing up for its service and the number of merchants joining appears to be slowing.

The company stood by its 2012 first-quarter expectations for revenue of $510 million to $550 million. But that is still single-digit growth year-over-year when it delivered double-digit growth in every quarter of 2011.

"We remain confident in the fundamentals of our business, as our performance continues to highlight the value that we provide to customers and merchants," Groupon's Chief Financial Officer Jason Child said in a statement.

The company also said Friday that it would extend its "lockup" period one month beyond what it had set out at its IPO. These agreements restrict the sale or transfer shares held by certain stockholders, often executives in the company. The agreements also prevent key stockholders from unloading shares or flooding the market, which could hurt its price.

Groupon said that its lockup agreements were originally scheduled to expire on May 2 but the company will be reporting its earnings on May 12 and the agreement forbids the two being so close to each other. As a result, the lockup period will be automatically extended through June 1.

Shares of Groupon, based in Chicago, plunged $1.24, nearly 7 percent, in after-hours trading.

Associated Press

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Sunday, April 1, 2012

Fans burn couches, flip cars after Kentucky's win

Kentucky fans dance around a fire on State Street as they celebrate Kentucky's 69-61 win over Louisville in an NCAA Final Four semifinal college basketball tournament game, Saturday, March 31, 2012, in Lexington, Ky. (AP Photo/The Courier-Journal, Amy Wallot) NO SALES; MAGS OUT; NO ARCHIVE; MANDATORY CREDIT

Kentucky fans dance around a fire on State Street as they celebrate Kentucky's 69-61 win over Louisville in an NCAA Final Four semifinal college basketball tournament game, Saturday, March 31, 2012, in Lexington, Ky. (AP Photo/The Courier-Journal, Amy Wallot) NO SALES; MAGS OUT; NO ARCHIVE; MANDATORY CREDIT

Kentucky fans celebrate Kentucky's 69-61 win over Louisville in an NCAA Final Four semifinal college basketball tournament game, Saturday, March 31, 2012, in Lexington, Ky. (AP Photo/The Courier-Journal, Amy Wallot) NO SALES; MAGS OUT; NO ARCHIVE; MANDATORY CREDIT

Ethen Farley yells with other Kentucky fans as they celebrate Kentucky's 69-61 win over Louisville in an NCAA Final Four semifinal college basketball tournament game, Saturday, March 31, 2012, in Lexington, Ky. (AP Photo/The Courier-Journal, James Crisp) NO SALES; MAGS OUT; NO ARCHIVE; MANDATORY CREDIT

(AP) ? Riot police used pepper spray in small amounts for crowd control as thousands of rowdy fans swarmed into the streets near the University of Kentucky campus, overturning cars and lighting couches ablaze after a victory over cross-state rival Louisville in a Final Four matchup.

Police had been bracing for the possibility of post-game violence and resorted to pepper spray though large amounts weren't needed before they ultimately began dispersing the throngs, Lexington police spokeswoman Sherelle Roberts said.

She said 150 officers deployed on the streets at one point to quell what she called "a very dangerous situation with the fires and the violence" that dragged on for hours.

"It's a fairly difficult situation, but not anything we didn't plan for," Roberts told The Associated Press.

Lexington City spokeswoman Susan Straub said police made fewer than 10 arrests, and a few injuries were reported after the celebrations turned rowdy in the streets after the Wildcats' 69-61 win in New Orleans.

Roberts subsequently told The Lexington Herald-Leader that by 1 a.m. there had been at least 13 arrests, including several people suspected of arson. The newspaper also reported ( http://bit.ly/Hbecx7 ) police had to dodge flying beer bottles while taking fire extinguishers to put out dozens of fires involving sofas, trash and other debris set ablaze in the streets. There were no immediate reports of any serious injuries to police.

Many streets had already been blocked off around Kentucky's Lexington campus earlier to make way for the crowds, but sirens blared and police shut down more streets when the blazes broke out. Twitter feeds reported police in riot gear moved in to disperse crowds as some people on the streets were overturning and vandalizing vehicles and others smashed glass bottles.

Straub said the crowds began to disperse by about 11 p.m., nearly three hours after the game ended. But she said at no point had things "gotten out of control."

Roberts said a street sweeping machine was called in later at night to clean debris where crowds had departed. But authorities had no immediate report on the damages. "I think it would be hard to estimate (damages) at this point," she added.

Earlier in the week, Lexington's mayor and UK's president had exhorted fans to respect property and neighbors. But the city and university were prepared for a fiery celebration after police reported at least a dozen couch fires last week after Kentucky's win over Baylor to earn a Final Four berth.

"We've come at this with a significant show of force," Straub said.

The raucous street scenes triggered a rebuke from UK spokesman Jay Blanton.

"It is unfortunate that a small number of people are using what should be a night of celebration as an excuse to attempt to tarnish the university and the community," Blanton said in a statement. "To the extent that students are involved in any illegal activity or actions that violate the university's student code, they will be dealt with appropriately."

In New Orleans, Micah Fielden, Kentucky's student body president, had earlier urged his fellow students in a tweet not to be destructive. "Let's be smart and act like we've been here before," he wrote on his Twitter feed.

The celebration was controlled when it began as celebrating fans streamed out onto the streets. At stoplights, fans hanging out of their cars chanted "C-A-T-S" while police and firefighters watched from the sidelines before the fires were lit.

Things were more peaceful 70 miles away in Louisville, where heartbroken Cardinals fans gathered on a closed street near campus and chanted "C-A-R-D-S" while waving a school flag.

Louisville fans were divided over whether to root for their rival in Monday's championship game against Kansas.

"Even though it's a Kentucky team, I hope they lose," said Michael Funke, who watched the game from a pizzeria just off campus.

Kentucky and Louisville fans took in the game from bars, restaurants and living rooms as their uneasy co-existence was challenged by the high stakes.

Saturday's game culminated a week of buildup in the state, with many fans recalling the "Dream Game" between the teams in 1983.

That year, Louisville beat Kentucky in overtime in the NCAA Mideast Regional Finals. It was the teams' first meeting since 1959. It took the governor to get the two schools together on an annual basis, and before Saturday the Wildcats were 18-11 since the annual game started in 1983-84.

Saturday's game was the fifth time the schools had met in the NCAA tournament ? the two sides having split the four previous meetings.

Kentucky won the earlier matchup this season, 69-62 on Dec. 31.

___

Associated Press Writer Janet Cappiello contributed to this report.

Associated Press

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