-Caveat Lector-

Wireless tracking devices raise privacy concerns

By ANICK JESDANUN, Associated Press

NEW YORK (October 29, 2000 3:30 p.m. EST
http://www.nandotimes.com) - Imagine walking by a Starbucks in an
unfamiliar city. Your mobile phone rings, and a coupon for coffee appears
on its screen, good only at that location.

How did your phone know you were even near that particular Starbucks?
What else does it know about you?

Enter location tracking, coming to a mobile device near you. Features that
one day can pinpoint your whereabouts to within the length of a football field
raise enormous privacy concerns, but they also offer enormous benefits.

The challenge will be determining where to draw the line.

Consider a technology to be unveiled Monday. Called Digital Angel, a
microchip worn close to the body promises to record a person's biological
parameters and send distress signals during medical emergencies.

But misused, these types of capabilities could amount to virtual stalking.

Cell phones, handheld devices, even car navigation systems will soon have
detailed tracking abilities, if they do not already. Services could begin
appearing within a year or so.

Much of the drive will come from a federal law that requires cell phones to
identify callers' locations to speed 911 emergency responses. If the
industry has to install expensive equipment anyway, why not use it also to
make money?

"There's going to be a dramatic increase in the amount of tracking that's
made possible, in part by services they don't know they have," said Daniel
J. Weitzner of the World Wide Web Consortium, which sets technical
standards for the Web.

Such tracking will let someone visit a Web site and automatically get
weather, movie showings or neighborhood restaurants, based on their
current location. If they're lost, they will be able to ask for turn-by-turn
directions. Those short of cash can be pointed to the nearest bank
machine.

But if the information is stored, location tracking could result in a 24-hour-a-
day record of a person's whereabouts.

So what if a divorce lawyer wants to check if someone's been cheating, or
if a social service agent wants to know how many times a person has
visited a candy store with his child?

"You have to ask, `Who gets how much information?"' said Jason Catlett,
chief executive of Junkbusters Corp., a non-profit privacy monitoring group
in Green Brook, N.J.

"Telephone records are routinely subpoenaed. They can be very intrusive,
but far more intrusive is a complete log of your physical movement."

Companies looking to gain business from location tracking say that the
worst-case scenarios presented are impractical to implement in reality.

"There's no way a database is large enough or cost effective for Starbucks
to monitor everyone's location on the offchance they can acquire a
customer," said Jason Devitt, chief executive of Vindigo, which offers 11
city guides through Palm organizers.

Lee Hancock, founder and chief executive of go2 Systems Inc., said any
short-term gains from such tactics would be offset by losses if they alienate
customers.

Leading wireless and advertising companies agree that they must tread
carefully because mobile devices are inherently more personal than
desktop computers.

At DoubleClick Inc., whose ad-targeting system generated much of the
Net's privacy complaints, officials won't deliver location-based ads right
away. The company wants to develop privacy standards first, using lessons
from the desktop.

"We've all learned what to do and what not to do, and we can port that over
to the wireless market," said Jamie Byrne, strategic director for emerging
platforms at DoubleClick.

Any such ads will likely target a metropolitan region, rather than a city block,
because audiences for block-by-block ads would be too small, Byrne said.
Ultimately, he said, such targeting will help subsidize wireless services that
customers want.

Jonathan Fox, director of business development at advertising company
Engage Inc., says location-based profiles would not carry names and other
personal information.

TRUSTe, which runs a seal-of-approval program for Internet privacy
policies, is looking to develop guidelines for mobile applications. Details
that remain to be worked out include how to notify customers on a phone's
small screen.

"It's more difficult to retrofit policies if you're already down the road," said
Robert Lewin, TRUSTe chief executive. "Here, we have the opportunity to
do it right the first time."

In many ways, a person's whereabouts are already being tracked.

Employee security cards record when people enter buildings. Discount
grocery programs track what people buy, where and when. Electronic toll-
payment systems know when someone traverses a tunnel or bridge.

Current phones can pinpoint callers to a few miles by determining the
location of the cell tower used to handle the call.

Palm VII organizers use similar techniques to narrow a user to a particular
zip code, and an optional global-positioning receiver can pinpoint that
person even further.

Marketers can also get clues from the items people search for or the sites
they visit - a city guide, for instance, tells in what city a person is likely
located or where they plan to visit.

But for the most part, marketers have yet to take full advantage of such
knowledge, and consumers have yet to complain.

"We're providing value," Palm spokesman Ted Ladd said. "Mobile users
are inherently in a hurry."

Wireless providers are not likely to have a use for storing location
information, except perhaps for applications that help with driving
directions.

Paul Reddick, vice president of product management and development
with Sprint PCS, said such storage is not practical, necessary or even
desirable.

"It takes years to build a brand and build trust," he said, "and you can blow
it pretty fast."

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