It is an interesting story because it illustrates the importance of having clear and understandable privacy policies that customers can understand. It is also an interesting story because it (once again) demonstrates the attention that the media place on privacy matters and the potentially explosive reaction that customers can have if they feel their privacy isn’t being respected.
Have you heard the term “cloud computing“, but aren’t really clear what it means?
Cloud computing is an umbrella term that refers to the use of Internet-hosted computer services. Think of your server — instead of having one in-house server located on company premises, an organization might opt to buy space on a third-party provider’s server. Other options include software hosting and data storage. By purchasing computing services from a variety of Internet-based providers, your computer needs are housed within a larger “cloud” of computer services.
Some organizations are opting for ”Software as a service” (SaaS), and allowing their data to reside on other company’s servers, or “the cloud“. Users only have to buy the space they need, which allows organizations to save money on their technology costs. Other benefits include access to people with technological know-how, flexibility and reduced maintenance costs.
Cloud computing is not new, but is now embedded into the fabric of modern business operations. In fact, the Los Angeles Times has reported that the city of Los Angeles is considering using Google applications for all of its software needs.
Privacy issues related to cloud computing, however, are profound. For example, many of the security questions that relate to traditional third-party data hosting were raised when a hacker broke into a Twitter employee’s work e-mail account and stole confidential company documents. The World Privacy Forum, meanwhile, has released a 28-page report on some of the privacy issues that relate to cloud computing. The report concludes that sharing information may expose some business users to liability, and emphasizes the importance of checking a cloud provider’s terms of service, privacy policy, and location.
Canadian businesses that engage in cloud computing should be reminded that they must do so in compliance with applicable privacy laws. For example, the Personal Information and Protection of Electronic Documents Act obliges organizations that transfer personal information to third parties to ensure appropriate security safeguards are in place.
They should also be mindful of the raging debate about the perils of cloud computing that has been underway now for some time. While cloud computing has the potential to provide benefits, organizations should ask themselves whether it is worth the risks it poses. You might save money in the short run, but is it worth the potential of a massive privacy breach?
The Australian and New Zealand Privacy Commissioners recently released studies examining the use of Portable Storage Devices (PSDs) by their governmental agencies. The aim was to examine the risks to personal information posed by the use of PSDs. PSDs are small, convenient devices that are capable of storing large amounts of information including laptops, cell phones, USBs, hard drives and iPods.
The studies found that government agencies often keep track of the PSDs they issue but seldom do audit checks on those devices. Policies regulating the proper usage are often developed, but rarely enforced. Hardware controls (i.e. sealing off ports and disabling cables) are used less frequently than software controls (i.e. blocking access to certain databases, monitoring access and information downloaded, etc.).
The majority of agencies (like most private sector businesses in Canada) also allow the use of private PSDs for work (i.e. a cell phone which is used for both personal and business purposes). The studies found that policies regarding the use of private PSDs were less common and much less enforceable than policies for agency-issued PSDs. Even though these studies only analyzed governmental use, the New Zealand Privacy Commissioner stated that she believed the findings were equally applicable to private sector businesses as well.
As I’ve commented in previous posts, there are privacy risks associated with the use of PSDs. First of all, there have been numerous incidents of stolen laptops and other PSDs that contained personal information. Secondly, devices such as USBs are easy to lose. Thirdly, disgruntled employees can easily use PSDs to steal personal information and other confidential corporate information from employers. For example, an employee can simply click a button and download a company’s entire database in a matter of minutes. This is called “pod-slurping” and is especially a threat given the fact that many government agencies and private companies do not have the software capability to track when data has been downloaded to a PSD.
In order to avoid a privacy breach and resulting damage to your business, consider implementing some of the suggestions contained in a 2006 investigation by the Alberta Privacy Commissioner (which I would add should, of course, be implemented in accordance with your organization’s privacy policy and applicable law):
Develop policies on proper usage of PSDs (whether company-issued or private) and train employees about these policies. Include detailed instructions about retention and deletion of personal information;
Limit the amount of personal information that is stored on PSDs;
Use encryption on all PSDs that store personal information. Password protection alone is not sufficient as there are free software programs available on the Internet which can crack passwords;
Monitor the use of PSDs through software (i.e. install software that tracks data downloaded from a database onto a PSD);
Instead of using PSDs, implement technologies that allow employees to access a database through a secure network;
With respect to laptop thefts, consider installing tracking software that can trace the location of a lost laptop. Also consider installing a “kill switch” so that the computer will self-destruct if an individual tries to gain unauthorized access; and
Stress to employees the need to use appropriate safeguards at all times, even when at home.
Today’s National Post story about a Nova Scotia judge’s decision to allow the publication of a private conversation between Natural Resources Minister Lisa Raitt and her former aide casts a spotlight on a murky area of privacy law.
As reported by the National Post, the unusual case raises questions about what constitutes a “reasonable expectation” of privacy in a world where digital recorders and handheld wireless devices are omnipresent. As I’m quoted in the story, “[researchers] said some years ago that new privacy rules were going to put existing business practices under a microscope. I think what we’re seeing now is technologies are putting existing legal principles under a microscope.” Fellow blogger Dan Michaluk is also quoted.
I was delighted to learn that IP Osgoode has named this blog the “Pick of the Week”!
IP Osgoode at Osgood Hall Law School in Toronto is a new, independent and authoritative voice which explores legal governance issues at the intersection of intellectual property (IP) and technology. If you haven’t yet visited the IP Osgoode website, I would encourage you to do so as it contains some great content.
As I’ve previously discussed, Social networking websites such as MySpace and Facebook are provoking new questions about the appropriate boundaries in employee-employer relationships. This is evident in a United States Federal Court case coming to a head in New Jersey. The case pertains to the conduct of a manager who logged into a private social networking website and observed employees slandering company supervisors and customers. Those same employees were later dismissed. The case exemplifies a rapidly expanding “grey area” between an employee’s work life and personal social life. It begs the question, at what point does a “private” comment to friend made outside of the office constitute defamation, and at what point are such comments simply banter between individuals? Of course, the answer is, it all depends on the facts.
For an interesting discussion on the matter, check out Myrth on a Blog, a personal journal of law, technology and social media.
It’s been a thrilling week for my colleagues at Pitblado LLP as it was announced earlier this week that we were to be the 1st Canadian law firm to be a guest blogger on the must-read slaw.ca. Yours truly, three of my colleagues from our firm’s Information & Ideas Practice Group as well as our firm’s librarian each contributed one post a day this week to slaw.ca on cutting edge legal topics. Here’s what we covered…
On Monday, I posted “What Would Happen If One of your Employees Posted a Video of an Irate Customer on YouTube?”, which I cross posted on my blog earlier this week. The post highlights a YouTube video of an irrate customer as a reminder to Canadian businesses of the powers of new technologies such as YouTube and the corresponding need to protect against the dissemination of this type of video through employee privacy training and the adoption and enforcement of privacy and procedures.
On Tuesday, Carol Lynn Schafer posted “Do TOS Have the Final Word on our Fundamental Rights and Freedoms?”, which discusses the controversial effects of Terms of Service on popular websites such as Facebook and Twitter. As Carol Lynn notes, Terms of Service should be drafted with the bigger picture in mind and can no longer be seen as standard agreements that can be treated with a one size fits all approach.
On Wednesday, Jolin Spencer posted “Whose Property Is It, Anyway?”, which discusses the questions that come into play when employees leave their positions. For example, what can an employee take, and what must they leave, when they vacate their position? As Jolin points out, no business wants its intellectual property assets walking out the door with a former employee.
On Thursday, our firm’s librarian, Karen Sawatsky, posted “Legal Research Bootcamp – Winnipeg Style”, which discusses her experience collaborating with members of the Manitoba Bar Association and the Law Society of Manitoba to create a CLE for articling students on legal research. The Legal Research Bootcamp is a first for Manitoba students, and aims to bridge the gap between when students start their articles and when CPLED begins in the fall.
Earlier this year, the Internet Corporation for Assigned Names and Numbers (“ICANN”) announced that they will be opening up the generic Top Level Domain extensions (the “gTLDs”) to allow for personalized extensions. I could (for a mere US$185,000.00+) now apply for a .brian or even a .privacy. And while the chances of me starting a .brian are very slim, it will be interesting to see how many organizations pay the application fee and create their own .blank extension. Opening up the gTLDs will likely force trademark owners to evaluate their brand strategies and, in doing so, weigh the costs and benefits of buying any or all gTLDs related to their brand.
If you’re a trademark owner and you want to approach your strategy conservatively, then you may want to take a defensive position and register any of the gTLDs that relate to the business in which you’re engaged. The list of commercial gTLDs would include .com, .net., .info, .org, .tel, .biz, .mobi, .tv and any other TLDs that seem to have a commercial application. Additionally, you may want to register and maintain the country code domain names (ccTLDs) in the jurisdictions where your organization offers, or plans to offer, its products or services. Once this is completed, you should then register any known variations of your trademark.
While, in theory, this is a very effective strategy – in practice, this strategy will be more difficult to execute. For example, the owners of Lego currently own 450 domain names within the TLDs. They recently pursued and won a WIPO arbitration decision against a cybersquatter who had registered the domains Justlegos.com, legosonly.com, and onlylegos.com; illustrating that even the most vigilant defensive strategy for the registration of domains names cannot prevent all infringements. As such, any brand strategy should be accompanied by vigorous monitoring and enforcement. The decision about which TLDs to register is a business decision that must weigh the cost of brand enforcement from a defensive position and an offensive position.
Another day, another development in the Google Street View story. Canada’s Privacy Commissioner and several provincial privacy commissioners have commented on street level imaging technology by releasing a timely Fact Sheet on the related privacy issues.
The commissioners point out that ”a common misconception is that a company doesn’t need your permission to take your photograph in a public place. In fact, one of your key protections under Canadian privacy law is that you should know when your picture is being taken for commercial reasons, and what your image will be used for. Your consent is also needed.”
The Winnipeg Free Press is also running an excellent story in today’s newspaper, which highlights some of the broader issues related to Google Street View. Arthur Schafer, a professor at the University of Manitoba and director of the Centre for Professional and Applied Ethics, comments in the story about the related ethical issues while I comment in the story about the related legal issues.
In terms of privacy, as with many other things, each step forward seems to come with a catch that makes the step forward a little smaller than one would hope. Google, in response to demands from privacy advocates and users, has taken a progressive step forward and created a means for users of Google to opt out of their targeted advertising by allowing a user to access Google Ad Preferences to change settings or to opt out completely.
At the same time, Google has announced plans to launch a new type of targeted advertising. Currently, when an Internet user visits a webpage with Google Adsense, Google will store cookies on a user’s computer and remember their interests from previous searches. The example used by Google is that if you have an interest in gardening, you may be shown gardening ads along with those related to the site you are visiting.
While Google’s addition of its Ad Preferences program is encouraging for privacy advocates, it does come in the wake of an entirely new and -according to privacy advocates – more invasive means of targeting ads at users. As part of this new initiative, Google has asked all Google Adsense publishers to update their privacy policies to notify users of their site of the fact that interest-based advertising will be displayed.
The Privacy Commissioner once noted that although PIPEDA (and other privacy legislation) imposes obligations on organizations to take appropriate measures in protecting personal information, sometimes the more important role of privacy legislation is to help people shape their view of privacy.
By revising their privacy policies, businesses will be taking steps to comply with applicable privacy laws; but whether these steps are enough to address the expectations of their customers regarding privacy is a matter to be best considered by each business. In the meantime, if a business using Adsense has any questions about this change or requires any assistance in updating their Privacy Policy, I would encourage you to contact me to discuss.
This blog provides practical assistance to Canadian businesses so they can better deal with issues related to privacy, access to information and social media law. I hope you subscribe to this blog via RSS (below) or via e-mail (below) so that you can receive timely updates to new posts. Thanks, Brian
This blog is presented for informational purposes only. Content does not constitute legal advice or solicitation and does not create solicitor-client relationship. Views expressed are solely the author's and should not be attributed to any other party, including Pitblado LLP or its clients. The author makes no guarantees regarding the accuracy or adequacy of the information contained herein or linked to via this blog. The author is not able to provide free legal advice. If you are seeking advice on specific matters, please contact Brian Bowman at (204) 956.3520 or bowman@pitblado.com, but please be aware that any unsolicited information sent to the author cannot be considered to be solicitor-client privileged. Comments published on this blog do not reflect the views of Brian Bowman, Pitblado LLP or its clients.
The Los Angeles Times is reporting that the Palm Pre phone secretly uses GPS to report users’ locations to the company.
Posted by Brian Bowman 
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In terms of privacy, as with many other things, each step forward seems to come with a catch that makes the step forward a little smaller than one would hope. 
