Critics Question Impartiality of Panel Studying Privacy Rights
http://www.washingtonpost.com/ac2/wp-dyn/A25345-2005Mar10?language=printer

By Jonathan Krim
Washington Post Staff Writer
Friday, March 11, 2005; Page E01

Even before recent security breaches exposed private data about millions of
consumers, the Department of Homeland Security was assembling a public board
to recommend how to best safeguard privacy, as the agency makes use of
growing stores of information collected about U.S. citizens.

But the 20-member panel has angered security and privacy-rights advocates
who charge that it is tilted toward the industries that profit most from
gathering, using and selling personal information, often to the government.

Two of the members work for database-marketing companies, while two others
work for think tanks that receive funding from the industry. Other members
represent the insurance, airline-reservation, technology-research and
database-software industries. At least two members are from companies with
Homeland Security contracts.

Nuala O'Connor Kelly, chief privacy officer at the department and organizer
of the board, defended the composition, saying the agency wanted to bring
top industry, academic and consumer-oriented expertise to the task. But
others worried about the balance of views.

"The slant [of the board] wasn't, from the get-go, to have a really, really
strong privacy focus," said Lee Tien, a senior counsel of the Electronic
Frontier Foundation, a privacy-rights group.

Tien said his group did not apply for board representation because the
agency recommended that members submit to security clearance checks, which
he viewed as antithetical to the mission of a board that is focused on
privacy.

Perhaps the most controversial appointment is D. Reed Freeman Jr., a
Washington lawyer who is chief privacy officer of Claria Corp. Previously
known as the Gator Corp., the California company was notorious for its
software system for tracking online user behavior and displaying pop-up
advertising on Web sites, which sparked lawsuits by media and other
companies, including The Washington Post.

The firm settled the suits, changed its name and no longer serves pop-up ads
without the permission of Web site operators.

But Claria remains a lightning rod for suspicion in privacy circles for its
ability to gather information about the Internet-surfing and buying habits
of users who receive its software, although the data collected does not
identify individual users. Claria's software comes bundled with other
applications, such as the Kazaa file-sharing program.

Another board member, Samuel Wright, is the chief lobbyist for Cendant
Corp., a consumer-services conglomerate that owns marketing firms, Avis and
Budget rental car companies, hotels such as Days Inn and Ramada and real
estate brokerages Century 21 and Sotheby's International Realty.

One Cendant subsidiary, airline-reservation system Galileo International
Inc., joined several airlines in providing the Transportation Security
Administration with customer data for testing passenger-screening programs.

Also represented is International Business Machines Corp., which recently
purchased SRD, a private firm whose software specializes in looking across
multiple databases to verify identity. IBM also has a contract with the
Department of Homeland Security to help test its Secure Flight
passenger-screening system.

"We have the best representation possible given the applicant pool," Kelly
said. Her office received 139 applications, which she pared down and
submitted for final approval by the department's former secretary Tom Ridge.

"These people bring a variety of different viewpoints," she said. "This is
not just the usual suspects, and that is as it should be. Homeland security
should not just be about Washington policy thinkers."

The board's first meeting will be next month, at which it will begin to
identify which projects it wants to take on.

Kelly said the panel also includes privacy-rights advocates and cited as an
example the presence of Tara Lemmey, a former head of the Electronic
Frontier Foundation, and Lance J. Hoffman, a computer science professor at
George Washington University.

Also on the board are James W. Harper of the Cato Institute, who, according
to his Web site, focuses on privacy "from a free-market, pro-technology
perspective," and Joanne McNabb, who heads the Office of Privacy Protection
for the state of California.

Many of the corporate members of the board are responsible for their
companies' privacy initiatives.

"Who better to educate DHS than people in industry" who confront privacy
issues regularly, Kelly asked.

As for the potential conflicts of interest that might arise with board
members whose companies do business with the agency, Kelly said the members
are representing themselves, not their companies.

Privacy and security advocates said there should be a strong public voice to
balance those in the information business. They noted that database brokers
and other companies have extensive records on virtually every adult in the
United States, and those records are regularly bought and sold with little
oversight. Moreover, the government is increasingly turning to the private
sector for such information to help strengthen national security.

"I don't get it," said Bruce Schneier, who writes books on security and is
founder and chief technical officer of Counterpane Internet Security Inc., a
computer-security company. Compared with a similar advisory group he is on
for the Secure Flight program, "this just looks like a bunch of corporate
flaks," he said.

Schneier said the privacy board reminds him of a Food and Drug
Administration panel that recently recommended restoring certain drugs to
the marketplace after concerns were raised about their safety. Some members
of the FDA board have financial ties to the pharmaceutical industry.

Ari Schwartz, associate director of the Center for Democracy and Technology,
a digital-rights advocacy group, said the board lacked privacy advocates who
are focused on the commercial sector's use of personal information, as
opposed to that of the government. Schwartz said the center's executive
director applied to be on the board but was rejected.

Freeman of Claria, who was hired to help that company change some of its
practices, said criticism of his participation on the board has been
disappointing.

"You can imagine my frustration," he said. "I can't imagine a circumstance
where an issue that would be before our committee would create a conflict as
it relates to my private employment." If one did arise, he said, he would
either recuse himself from that issue or resign from the board. 



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