Witness these tidbits from an article published in Ha'aretz a few months
ago:

********
"I don't know another Web site that has a privacy policy as flexible as
eBay's," says Joseph Sullivan. A little bit later, Sullivan explains what
he means by the term "flexible." Sullivan is director of the "law
enforcement and compliance" department at eBay.com, the largest retailer
in the world.

"There's no need for a court order," Sullivan said, and related how the
company has half a dozen investigators under contract, who scrutinize
"suspicious users" and "suspicious behavior." The spirit of cooperation is
a function of the patriotism that has surged in the wake of September 11.

Sullivan says eBay has recorded and documented every iota of data that has
come through the Web site since it first went online in 1995. Every time
someone makes a bid, sells an item, writes about someone else, even when
the company cancels a sale for whatever reason - it documents all of the
pertinent information.

One would think that preserving privacy of the users, whose moves are so
meticulously recorded, would be keenly observed at eBay, whose good name
in the Internet community is one of its prime assets. But in the U.S. of
the post 9/11 and pre-Gulf War II era, helping the "security forces" is
considered a supreme act of patriotism.

"We don't make you show a subpoena, except in exceptional cases," Sullivan
told his listeners. "When someone uses our site and clicks on the `I
Agree' button, it is as if he agrees to let us submit all of his data to
the legal authorities. Which means that if you are a law-enforcement
officer, all you have to do is send us a fax with a request for
information, and ask about the person behind the seller's identity number,
and we will provide you with his name, address, sales history and other
details - all without having to produce a court order. We want law
enforcement people to spend time on our site," he adds. He says he
receives about 200 such requests a month, most of them unofficial requests
in the form of an email or fax.

The meaning is clear. One fax to eBay from a lawman - police investigator,
NSA, FBI or CIA employee, National Park ranger - and eBay sends back the
user's full name, email address, home address, mailing address, home
telephone number, name of company where seller is employed and user
nickname. What's more, eBay will send the history of items he has browsed,
feedbacks received, bids he has made, prices he has paid, and even
messages sent in the site's various discussion groups.

A brief visit to the company's Web site reveals that the "user contract"
that visitors are supposed to read before agreeing to the conditions is
4,023 words long. One paragraph makes reference to the site's "privacy
policy." The user has to click on a link and is diverted to another
document that is some 3,750 words long. It then takes another 2,390 words
to reach the section about which Sullivan told the legal authorities: The
user's privacy is solely up to eBay.

eBay does not make do with simply sharing its data with the legal
authorities. Sullivan says the company employs six investigators, all of
whom have experience in police investigations. Their job is "to track down
suspicious people and suspicious behavior." To that end, they scan for
patterns that are atypical - different from "normal patterns." For
example, if a person sold baseball tickets for two months and suddenly
switches to selling a car, the eBay system will "wave a red flag" and
signal the seller as someone behaving unusually.

eBay goes even further. In his lecture, Sullivan spoke about how he helped
investigators locate a user who had been suspected of selling stolen cars
through the site. "We tried to buy the car from the thief and in that way
incriminate him. But the bad guy was smart. He saw there wasn't a single
feedback in the history of the person who was making the purchase. He told
us he didn't want to make a deal with us."

Sullivan explained that the incident taught the company a lesson, and that
since then it has used pseudo buyers for which it constructs comprehensive
simulated histories, including simulated feedbacks, all for the sake of
incriminating those suspected of theft. "eBay is not willing to tolerate
acts of fraud carried out on its site," explains Pursglove. "We believe
that one of the ways to fight fraud is to cooperate with the legal
authorities at the various levels.

Sullivan is even more forthcoming. Aware of how hard the police work, he
decided to help as much as possible. "Tell us what you want to ask the bad
guys. We'll send them a form, signed by us, and ask them your questions.
We will send their answers directly to your e-mail." Essentially, by
engaging in what seems like impersonation, eBay is exploiting its
relationship with customers to pass on information to law enforcement
authorities. Why? "We take various steps in order to fight fraud and
provide a safe buying environment for our numerous users," says Pursglove.

In July 2002, eBay bought PayPal, Inc. for $1.45 billion. ... Two years
earlier, eBay bought Half.com, a site that specializes in sales of CDs and
books. Sullivan explained that these acquisitions help eBay to provide
lawmen with a full picture. "Every book or CD comes with a bar code. So we
know who bought what. The acquisition of PayPal helps us to locate people
more precisely. In the old days, we had to trace IP addresses (unique
address given to computers linked to the Internet), to locate the buyer,
but now Paypal supplies us with the money trail.

PayPal has about 20 million customers, which means that we have 20
millions files on its users," Sullivan proudly relates. "If you contact
me, I will hook you up with the Paypal people. They will help you get the
information you're looking for," he tells his listeners. "In order to give
you details about credit card transactions, I have to see a court order. I
suggest that you get one, if that's what you're looking for." It isn't
certain that visitors to the site are aware of the thick hints eBay gives
the lawmen.

"By buying PayPal, eBay is merging the information about the goods trail
with the money trail," explains Kozlovski. "Thus, in spite of the
protective mechanisms of the law against disclosure of details on
transactions, eBay is in a position to analyze the full set of data and
`advise' investigators when it might be `worthwhile' for them to ask for a
subpoena to disclose the details of a financial transaction. Essentially,
this bypasses the rules on non-disclosure of details of financial
transactions and the confidentiality of the banker-client relationship."
********

And that's the condensed version.  Full story is here:

http://www.haaretz.com/hasen/pages/ShArt.jhtml?itemNo=264863&contrassID=2&subContrassID=5&sbSubContrassID=0&listSrc=Y&itemNo=264863


Frank



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