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Report: HP's South Korean offices raided over alleged price fixing
Korea Times is a publication that isn't shy of the odd bold statement and today it's claiming that HP's South Korean offices were raided on suspicion of price-fixing deals made with IBM and Oracle. The country's Fair Trade Commission seized documents, computer records and questioned employees over alleged price-rigging on public-sector contracts. A company spokesperson said that the visit was routine, while FTC officers refused to comment about ongoing matters, but what is clear is that if any wrong-doing is found, the case will be turned over to prosecutors with the aim of commencing criminal proceedings for those responsible.
FTC wants new privacy framework: asks for simple controls, transparent policies
There's plenty of people bothered by the dossiers of data companies like Facebook and Google can (and do) compile on their users, particularly in places across the pond. Now, the Federal Trade Commission has come up with a privacy framework to help address consumer concerns and provide companies with best practices to proliferate better privacy policies. This new plan is articulated in the FTC's recently released privacy report, and seeks to persuade companies to adopt a Privacy by Design ethos. Companies can do this by building in simplified privacy controls throughout product development and making info collection and practices transparent to users.In order to meet these goals, the FTC came up with a five-pronged approach. First up is the widespread implementation of a Do Not Track system -- for which the W3C is currently creating an international standard -- that has already made its way into Internet Explorer, Firefox, and Chrome to make it easy to opt out of targeted ads. Mobile services are also a priority, as the FTC wants concise, meaningful privacy disclosures to make them easy to digest when on smaller screens. Next, the FTC wants consumers to be able to easily find what personal info is held by data brokers, and is pushing those data brokers to create a centralized website to that end. ISPs, social networks, operating systems, and other so-called "large platform providers" are also under scrutiny for their ability to comprehensively track consumers, and the FTC will have a public workshop later this year to "further explore" issues related to that capability. Lastly, the Commission is working with the Department of Commerce to create business sector-specific codes of conduct, and pledges to continue to take action against companies that don't abide by their own policies.In order to assuage fears that its framework puts too big of a financial burden on small businesses, the FTC made clear that it doesn't apply to companies that collect data from less than 5,000 customers and don't share that data with third parties. Sounds like a good plan, fellas, but we won't get too excited until we see the big boys actually implementing it.
Samsung, LG and Pantech, among others, fined $40 million in Korean price fixing scam
The truth in advertising is that there is none -- it's mostly all smoke and mirrors. But sometimes those illusory promises have real-world criminal intent behind them, like this latest ruling from the Korean government's corporate regulator. In a decision handed down earlier today, that governing body found mobile phone makers LG, Samsung and Pantech, in addition to operators KT, SK Telecom and LG Upius guilty of price fixing. In what's been framed as a case of consumer fraud, the OEMs reportedly inflated the associated costs of handsets, which were then marketed with supposed discounts by the colluding carriers. Collectively the group's been ordered to pony up about 45.3 billion won (or $40.2 million) in fines, with the largest of those penalties belonging to Samsung at 14.2 billion won (about $12.6 million) and SK Telecom at 20.2 billion won (about $18 million). Adding further insult to this public injury is the FTC, which has taken the extra step of imposing sales restrictions that are intended to prevent the involved parties from committing future infractions. Check out the source below for the full scoop on this corporate back-scratching.
FTC Subpoenaed Apple over Google search on iOS
The U.S. Federal Trade Commission subpoenaed Apple as part of a Google antitrust inquiry says Bloomberg. The FTC asked Apple to hand over documents that detail its search agreement with Google. Google has been the default search engine for iOS since the iPhone launched in 2007. Rumors suggest Microsoft, in 2010, tried unsuccessfully to unseat Google from this position. At the heart of this investigation is the assertion from Google's competitors that the search giant used its position to favor its own businesses in search results, increase advertisement rates for its competition, and control the mobile search market.
FTC: Western Digital and Hitachi must give assets and IP rights to Toshiba (update: sale approved)
Thought everything was looking rosy for the hard drive hitch of the year? Well, it looks like Federal Trade Commission reckons the union of Hitachi and Western Digital isn't quite there just yet, ordering that the new company would have to shed some of its assets to Toshiba. The FTC wants to ensure a competitive climate in the 3.5-inch hard drive market and avoid Western Digital and Seagate -- the two largest HDD manufacturers -- carving up the whole sector between them. According to the FTC's proposals, Toshiba has to receive the production assets needed to equal Hitachi's current HDD market share, alongside access to Western Digital's research and development resources and licenses to its intellectual property. Regulators had previously stated that WD could expect to sell on some of its production assets in order to get the tie-up okayed. Western Digital now has 15 days to hand over these assets to Toshiba -- who, presumably, aren't complaining -- once the deal with Hitachi is finally inked. Update: Looks like all the FTC wrangling was worth it, because WD and Hitachi have announced that all the necessary approvals have been obtained and the deal is due to close on March 8th. PR's after the break.
US senator Schumer calls for FTC investigation of Apple, Google
A Reuters report says US Senator Charles Schumer is asking the Federal Trade Commission to investigate Apple and Google over its handling of photos. A recent New York Times report discussed a privacy breach that lets any iOS app with location permission to access a user's photo album. A follow-up report details how Android also lets an app with Internet permission to access the photo gallery on the handset. In both cases, the user is not aware these apps are tapping into their personal images. Schumer writes in his letter to the FTC, "These uses go well beyond what a reasonable user understands himself to be consenting to when he allows an app to access data on the phone for purposes of the app's functionality." He questions whether Google and Apple are enforcing their terms of service and declares that handset makers have an obligation to protect the private content on their user's phones. This isn't the first time Schumer has targeted Apple. In 2010, the US Senator sent an open letter to Steve Jobs asking him to address the iPhone 4 antenna issues and provide a free solution that'll fix the problem for customers.
CarrierIQ execs meet with FTC and FCC officials to address privacy concerns (update)
CarrierIQ is having a difficult time making friends. Nearly two weeks after Massachusetts congressman Edward Markey asked the FTC to open an investigation on the data collection company, it appears his wish may be granted. According to anonymous government officials close to the Washington Post -- and confirmed by CarrierIQ itself -- senior officials from the company visited the nation's capital yesterday to discuss the matter with representatives from the FTC and the FCC, as well as a few congressional staffers. The Federal Trade Commission itself hasn't confirmed that it's opening a probe into the situation; regardless, it's certainly evident that the government's beginning to look very close at the company's practices. It's great news for privacy advocates, but whether it amounts to any changes remains to be seen. Update: We just received a report from the New York Times that Carrier IQ claims it was misquoted in the Washington Post. In a statement released later, the company said: This week CarrierIQ sought meetings with the FTC and FCC to educate the two agencies about the functionality of its software and answer any and all questions. Although Congressman Edward J. Markey (D-Mass.), co-Chairman of the Bi-Partisan Congressional Privacy Caucus, has asked the Federal Trade Commission (FTC) to investigate the practices of Carrier IQ, we are not aware of an official investigation into Carrier IQ at this time.
Carrier IQ issues lengthy report on data collection practices, sticks to its guns
After having already tried to explain itself with metaphor, Carrier IQ is now taking its floundering PR campaign back to basics, with an ostensibly thorough primer on its practices and a slightly less convoluted defense of its privacy standards. This morning, the controversial analytics firm released a lengthy, 19-page document that attempts to explain "what Carrier IQ does and does not do." In the report, titled "Understanding Carrier IQ Technology," the company explains the benefit it offers to its clientele of network operators, many of whom rely upon Carrier IQ's diagnostic data to make sure their infrastructure is up to snuff. It also provides a breakdown of how it collects data, as well as a defense against Trevor Eckhart's findings, though, as you'll see, these arguments likely won't put this saga to bed anytime soon. Read more, after the break.
Carrier IQ VP says software poses no threat to user privacy, backs up his argument with metaphor
The final chapter of the Carrier IQ saga has yet to be written, but at this juncture, even the rosiest of rose-tinted observers would be hard pressed to find a silver lining. The specter of federal investigation looms larger by the day. Implicated carriers and manufacturers are washing their hands with Macbethian fury. Al Franken is on the verge of going Al Franken. And at the epicenter of all this sits Carrier IQ -- a California-based analytics company that has already gone to great lengths to defend its innocence. First, it sought to discredit Trevor Eckhart's ostensibly damning research with a cease-and-desist letter. Then, CEO Larry Lenhart flatly denied Eckhart's findings with an impassioned YouTube address. In recent days, the company has markedly softened its stance, arguing that its apps are only designed to meet operator demands and to "make your phones better." Now, Carrier IQ has elaborated upon these arguments with a more detailed breakdown of how its software functions, and a more substantive defense of its practices. Head past the break to read more.
FTC asked to open an investigation into Carrier IQ
It was only a matter of time, we suppose, before this whole Carrier IQ thing started drawing the attention of lawmakers. The saga has quickly spiraled out of control, with carriers being forced to declare which side they're on and Senator Stuart Smalley Al Franken demanding the company provide details about what data it collects and how it's used. Well, Massachusetts congressman Edward Markey has even less patience than his esteemed colleague and has already asked the FTC to open an investigation into Carrier IQ. Markey wants the Federal Trade Commission to look into whether or not the rootkit and its creators have violated the privacy of millions of cellphone users and federal wiretap laws -- an accusation the company vehemently denies. We hope you're not tired of this epic tale yet, 'cause we're just getting started.
Facebook, FTC reach settlement, Zuckerberg confesses 'a bunch of mistakes'
Facebook and the Federal Trade Commission have reached a settlement over consumer deception charges dating back to 2009. The commission claimed that the social networking giant made public information it promised to keep private, thanks to changes in site terms. According to the terms of the deal, user feedback will be required before the site makes changes to policies for sharing data. Mark Zuckerberg addressed his company's on-going privacy issues, admitting to "a bunch of mistakes," adding, In particular, I think that a small number of high profile mistakes, like Beacon four years ago and poor execution as we transitioned our privacy model two years ago, have often overshadowed much of the good work we've done. Zuckerberg assured users that Facebook is making a "clear and formal long-term commitment" to privacy tools.
Google Buzz settlement approved by FTC, yearly privacy audits incoming
Mountain View's lawyers can collectively breathe a sigh of relief, as the FTC has accepted an earlier proposal relating to Buzz's numerous privacy violations. The service -- which already settled one suit and is scheduled for rendezvous with the grim reaper -- was singled out by the commission for misleading users by partially opting them in, even after they had explicitly declined to do so. As punishment, Google will be required to field yearly audits from an independent party for the next twenty years (!). Don't mess with the law government, kids.
Senator Schumer blasts OnStar for 'brazen' privacy violation, calls for FTC investigation
Last week, OnStar issued a privacy notice informing customers that it would continue to collect data on vehicles still connected to its servers, even for those who have already canceled their subscriptions. The move elicited a chorus of protests from Democratic privacy advocates in the Senate, including Chris Coons, Al Franken and, most recently, Charles Schumer, who wrote a letter to the FTC yesterday calling for an investigation into what he sees as a bold violation of consumer rights. "By tracking drivers even after they've canceled their service, OnStar is attempting one of the most brazen invasions of privacy in recent memory," the New York Senator said. "I urge OnStar to abandon this policy and for FTC to immediately launch a full investigation to determine whether the company's actions constitute an unfair trade practice." Find out more about OnStar's new policy, after the break.
Got acne? There used to be an app for that
The iPhone is pretty special, but apparently its magic does not extend to curing blemishes. The Federal Trade Commission has reached a settlement with the developers of AcneApp. The marketers of the app claimed that it "was developed by a dermatologist.... A study published by the British Journal of Dermatology showed blue and red light treatments eliminated p-acne bacteria (a major cause of acne) and reduces [sic] skin blemishes by 76%." There were approximately 11,600 downloads of AcneApp from the iTunes store, where it sold for $1.99. The FTC charged the acne treatment claims made for both the iPhone and a similar Android app were unsubstantiated. It also charged that the marketers of AcneApp falsely claimed that the study in the British Journal of Dermatology proves that blue and red light therapy, such as the type provided by AcneApp, is an effective acne treatment. Our own Chris Rawson was pretty sure the iPhone's oleophobic screen would take care of acne on its own, but apparently it is only good at resisting greasy fingerprints and ear wax. A couple of mysteries here: First, how did this kind of snake oil make it past the iPhone app store vetting, and why on earth did 11,600 people download it? Just thinking about this makes my face itch. Oh, if you still need some kind of acne fix, there is a free app called Acne Eraser that will gives you info and tips on getting rid of the facial blight. For our more light-hearted readers there is a free iOS game called Pimple Popper. You can figure out the rest. As they say, once you pop, you cannot stop.
FTC reportedly focusing on Android, search placement in Google probe
We've known since late June that Google has found itself the target of an FTC probe, but until now we haven't had any indication about exactly what the FTC was probing. According to a report from The Wall Street Journal today, however, the FTC is looking at both Android and Google's search practices, and specifically whether it gives preferential placement to its own products and services at the expense of its competitors. The WSJ also says the FTC is looking into allegations that Google unfairly takes information like reviews of local businesses from its competitors, and then uses it on its own sites while also pushing those competitors down in its search results. For its part, Google denies that it engages in any such practices, and says that it is "happy to answer any questions" the FTC has about its business.
FTC to put Google under a microscope, try to uncover anti-competitive ways?
Google's drawn the ire of the Federal Trade Commission before for failing to follow its own privacy policies. Now, however, the Mountain View crew is apparently facing a formal inquiry from the FTC as it seeks information about Google's search and advertising business. The civil investigative demands are set to be sent out within the next five days, according to the Wall Street Journal, and the commission will be looking into whether Google's search engine illegally routs all those internet eyeballs scanning its site to its own services instead of those offered by competitors. Sound familiar? It should, because Google's under investigation for similar anticompetitive accusations made in Europe -- somewhere Steve Ballmer is smiling.
Microsoft gets antitrust okay for Skype purchase, readies shockingly large wire transfer
Look out, world -- Microsoft just crossed another hurdle in its bid to swallow Skype whole. Earlier today, US antitrust approval was given on Microsoft's largest (proposed) acquisition, clearing the path for all sorts of Windows / Xbox / WP7-related VoIP shenanigans. While many are still questioning the logic here, Skype continually brought around 145 million users to the table per month even while it constantly bled money. Whatever the case, it looks as if the accountants in Redmond just got US DoJ permission to move $8.5b from one column to the next, and with an initial investment like that, we're hoping for a number of updated features as the attack plan unfolds.
Report: Game industry best at preventing sale of mature content to minors
The Federal Trade Commission recently conducted an annual undercover shopping survey and found that, of the various consumer entertainment industries, the video game industry was actually best at self-policing and keeping material intended for mature audiences away from children. Following a trend since 2000, the game industry scored very well with only 13 percent of underage shoppers able to buy M-rated games, down from 20 percent last year. Of the various retailers in the survey, Walmart had the worst track record with 20 percent of sales allowed, while Target let only 8 percent of potential shoppers buy games they weren't supposed to. Outside of the game industry, the music industry was the least effective, with 64 percent of the FTC's shoppers able to buy music marked with a Parental Advisory Label. The Entertainment Software Ratings Board responded to the survey through president Patricia Vance, saying it was happy with the results and that retailers have helped. "The strong support that the ESRB ratings have enjoyed from retailers is crucial, underscoring their firm commitment to selling video games responsibly," she said in a statement. The FTC issues this report to Congress every year and says that, despite enforcement improvements across the board, "more needs to be done" to prevent the sale of mature content to young audiences.
Google to receive regular privacy audits following FTC ruling on Buzz
Well, it looks like the spectre of Buzz will be looming large over Google for some time to come -- the company has just reached an agreement with the FTC that will see it receive independent privacy audits every two years for the next twenty years following a ruling that found Google violated its own privacy policy with the service. In a blog post today, Google also says that it will now "ask users to give us affirmative consent" before it makes any changes in how it shares their personal information, and it adds that it would like to "apologize again for the mistakes we made with Buzz." As for the FTC, chairman Jon Leibowitz describes the settlement as a "tough" one, and says simply that "when companies make privacy pledges, they need to honor them."
Federal Trade Commission is reviewing Apple's in-app purchase system
The FTC is reviewing Apple's in-app purchasing policy after reports of inadvertent purchases by children have continued to surface. FTC Chairperson Jon Leibowitz agreed to look closely at the matter after Representative Ed Markey of Massachusetts brought the matter to his attention. Leibowitz will most likely focus on Apple's 15-minute window, a single instance sign-in that lets iOS users log in once and make additional purchases and downloads for the next 15 minutes. It is during this 15-minute window that children left unattended with a device are able to rack up huge charges. The latest such incident involving exorbitant charges by children involves the Smurf's Village app. In this incident, the child reportedly purchased berries and other items totaling a whopping US$1400. Earlier reports singled out Fishies by Playmesh, a virtual aquarium game for children. Fishies offers pearls for your tank which can cost as much as $149. Children hooked on the game and playing unattended have charged hundreds of dollars to their parents' iTunes account. Apple has combated this problem by pointing out that parents can block all in-app purchases using iOS 4's parental controls. The ability to turn off in-app purchases places the responsibility squarely on the shoulders of the parents who should lock their iPhone, iPad or iPod touch before handing it over to their children. Though these parental controls may be enough to thwart any action from the FTC, Apple may also decide to limit this 15-minute window and require a password for each in-app purchase. To disable in-app purchasing on your iOS device, go to Settings > General > Restrictions and enter a passcode when asked. Then, tap on "Enable Restrictions" and scroll down to "In-App Purchases" and flick the toggle to "OFF."
