Badges - Computer web cam, spyware & keystroke monitoring

  • From: Charles Rahn <c.t.rahn@xxxxxxxx>
  • To: Badges 1Badge <badges@xxxxxxxxxxxxx>
  • Date: Wed, 4 May 2011 16:52:25 -0400

A Pennsylvania federal lawsuit filed May 2 and reported in today?s Washington 
Post claims that Aaron?s Inc., a large furniture rental chain store based out 
of Atlanta, Georgia, placed spyware on computers they rented to track their 
customers? keystrokes, take screenshots and even transmit webcam images of 
users at their homes. The case was brought by a young couple, Brian and Crystal 
Byrd. The lawsuit is reminiscent of the Lower Merion School District matter 
which last year brought about the introduction of anti-surreptitious video 
surveillance legislation by then Pennsylvania Senator Arlen Specter which ISPLA 
in Washington worked hard to successfully defeat.

Privacy experts contend that Aaron?s has the right to equip its computers with 
such software to shut off the devices remotely if customers stop paying their 
bills.  However, customers must be notified of such monitoring. ?If I?m renting 
a computer ... then I have a right to know what the limitations are and I have 
a right to know if they?re going to be collecting data from my computer,? said 
Annie Anton, a professor and computer privacy expert with North Carolina State 
University.

But the couple who sued Aaron?s said they had no knowledge that the computer 
they rented came equipped with a device that could spy on them. It was not 
until December 22, 2010 when an Aaron?s manager came to their home to repossess 
the computer because he mistakenly believed the Byrds had not paid off their 
?rent-to-own? agreement. However, after they produced a paid receipt the 
manager showed them a picture of them using the computer that had been taken by 
the computer?s webcam.

Aaron?s claims it hasn?t authorized any of its corporate stores to install the 
software described in the lawsuit. Police were contacted by the customer who 
ascertained the image had been taken by software of Designerware LLC and 
installed on all Aaron?s rental computers. Designerware is a codefendant in 
this matter. The Byrds leased their computer from an independently owned and 
operated franchisee. Aaron?s believes that none of its more than 1,140 
company-operated stores had used Designerware?s product or had done any 
business with it.

It remains to be seen if the Electronic Communications Privacy Act and the 
Computer Fraud and Abuse Act were violated. If either law was broken then 
Aaron?s went too far.

Former FTC Commissioner, Peter Swire, an Ohio State professor, is quoted in an 
AP item that using a software "kill switch" is legal because companies can 
protect themselves from fraud and other crimes.  "But this action sounds like 
it's stretching the self-defense exception pretty far," he said, because the 
software "was gathering lots of data that isn't needed for self-protection."  
He is also quoted as indicating the Computer Fraud and Abuse Act "prohibits 
unauthorized access to my computer over the Internet. The renter here didn't 
authorize this kind of access."

Fred Cate, an information law professor at Indiana University agrees that 
consent is required but said the real question might be: "Whose consent?"  
Courts have allowed employers to record employee phone calls because the 
employers own the phones. Similar questions arise as digital technology becomes 
more omnipresent, Cate said. "We always talk about deterrence value. Well it 
doesn't make sense to put (the software) on there" without telling people what 
it can do," according to Cate. "That's why we all put alarm signs in front of 
our houses, even if we don't have alarms."

According to the lawsuit, components were soldered into the computer's 
motherboard or otherwise physically attached to the PC's electronics. It can 
only be uninstalled and deactivated using a wand.  John Robinson, the 
plaintiffs? attorney, indicated the computer is currently held as police 
evidence. His clients want the federal court to declare their case a class 
action and are seeking unspecified damages and attorneys' fees. They contend 
the privacy act allows for a penalty of $10,000 or $100 per day per violation, 
plus punitive damages and other costs. 

PRNewswire released an Aaron's, Inc. item that the lawsuit regarding a 
violation of privacy relating to a computer rented from an Aaron's franchise 
store is without merit against Aaron's, Inc. 

?The Company believes that none of its over 1,140 Company-operated stores have 
used the product developed or provided by PC Rental Agent or Designerware LLC, 
the two vendors named in the lawsuit, and neither vendor is approved or have 
done any business with Aaron's, Inc.

?Aaron's, Inc. respects its customers' privacy and has not authorized any of 
its corporate stores to install software that can activate a customer's webcam, 
capture screenshots, or track keystrokes.  The named plaintiffs leased the 
computer at issue from an independently owned and operated franchisee.  
Aaron's, Inc. intends to vigorously defend itself against these allegations.

Aaron's, Inc. has company-operated and franchised stores in 48 states and 
Canada. It also manufactures furniture and bedding at 12 facilities in seven 
states. Information related above is a compilation of reports from the 
Washington Post, Associated Press, PRNewswire, the American Bar Association, 
and ISPLA privacy reference material.

ISPLA expects that this revelation, along with recent coverage of Internet 
tracking by Google, and several Congressional hearings scheduled for next week, 
will keep our profession busy during the 112th Congress.




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