On Friday, Judge Susan Illston approved the settlement between Google and the FTC regarding Google’s hack of the Safari browser. In doing so she gave Google the right to retain and use the data it secretly obtained by tricking the Safari browser into thinking users had given permission to track them, contrary to what users were told in Google’s privacy agreement.
Many news reports recount that in court, Illston had concerns about Google’s ability to retain the illegally obtained data of up to 190 million Safari users as part of the settlement. As I wrote on Friday:
“The Commission considers Consumer Watchdog’s concern to be unlikely, because old data is of negative value” said the FTC counsel Adrienne Fowler, who maintained that Google anonymizes IP addresses after nine months and can no longer associate it with individual users, rendering the data useless.
Something about that didn’t ring true to me. Consumer Watchdog’s case was basically built on the dissent of FTC Commissioner J. Thomas Rosch (PDF), who made no mention of the fact that Google would be able to retain the data in his opposition to the settlement agreement. Surely Rosch would have mentioned that elephant in the room if he knew about it at the time.
And, it turns out, he didn’t — and neither, he says, did any of the other commissioners.
I emailed Commissioner Rosch yesterday and posed the following questions:
I am curious to know if you were aware at the time that you wrote your dissent that Google would be allowed to retain and use the data they obtained when they violated their privacy agreement with Safari users.
If so, are you in agreement that it is fair to let them continue using the data? And why was no explicit mention of this part of the agreement made to either the courts or in the press?
If not, can you tell me when the commission became aware that the terms of the agreement allowed Google to continue exploiting the data, and if there was consensus at the time the government responded to Consumer Watchdog’s amicus curiae brief, making it explicit that Google could do so?
Commissioner Rosch responded to my email today:
The answers to your questions in order are: No. No. No, In other words, neither I nor anyone else at the Commission was aware of the cookie issue until the plaintiffs brought it up before Judge Illston.
According to Rosch, when the FTC wrote the settlement agreement, it was neither contemplated, discussed nor intended that Google be able to retain the data.
How did this happen? It’s hard to tell. You can read a history of this rather confusing court case here. Basically, the court had to approve the settlement reached between the FTC and Google. The independent group Consumer Watchdog, represented by noted Silicon Valley antitrust attorney Gary Reback, filed and amicus brief in opposition to the settlement. The Department of Justice, representing the FTC, filed a response to Consumer Watchdog’s brief. When Reback read it, he amended the CW brief because he was extremely concerned that it implied Google would be able to retain and use the illegally obtained data in the future under the terms of the somewhat opaquely-worded settlement. To which the DoJ lawyers did not object.
Why is this important? Because Judge Illston justifies her decision to approve the settlement based on claims made by Google and the FTC that the concerns raised by Consumer Watchdog about Google’s future use of the data were considered and dismissed by the commissioners (PDF):
At the hearing, both the FTC and Google asserted that these concerns had been considered and dismissed in the course of negotiating the settlement. The parties state that Google would be unlikely to use the information from the Safari cookies for several reasons. First, because the data is old, it contained data — or outdated — information of very low value. Further, Google has now ‘anonymized” the IP addresses, and there fore the data cannot reliably be linked to individuals. More generally, the FTC considered and rejected many more stringent injunctions because the risk that they would hamper Google’s ability to protect consumers from data security and malware vulnerabilities outweighed the benefits to the public. (my emphasis)
But according to Commissioner Rosch, none of that ever happened. He emphatically says that “neither I nor anyone at the Commission was aware of the cookie issue until the plaintiffs brought it up before Judge Illston.”
In the government’s response to CW’s amicus brief, they claim that Google has already profited $4 million from the use of the illegally obtained data. And the Judge just gave them the right to continue using the data based on representations from both Google and the FTC’s lawyers that this is what the Commissioners intended.
It appears that when the issue came up, Google decided they wanted to keep using the data, and the FTC staff didn’t go back and check with the commissioners. Instead, both went into court and misrepresented the history of the settlement deliberations to the judge.
It’s extremely disconcerting that Google is going to be allowed to retain data it obtains illegally as part of the settlement. But it’s even more troublesome to see how easily Google can manipulate the only watchdog they really have. If the FTC’s lawyers are reflecting what Google wants, rather than its own commissioners, it doesn’t bode well for the upcoming antitrust settlement.





18 Comments

Holy Christ Batman. Do you know if CW is or can appeal the settlement?
I don’t know. I read somewhere that their ability to appeal would depend on how the judge wrote her decision, but not being a lawyer and all I’m not familiar with those legal intricacies.
But it seems like this should be a good reason for someone to be reconsidering the issue. I emailed the judge and asked her if it would have impacted her decision had she known this before she wrote it. I’ll keep you posted.
I was wondering the exact same thing.
Almost always in non-criminal suits and hearings, evidence to the contrary of a desired verdict is kept out of the proceedings, usually by coercive discipline. Translation: guys on career paths with hefty mortgages won’t make waves.
Courts are easily gamed.
Thanks, Jane. Really appreciate your ability to make this clear.
Took me all day. My head pretty much snapped when I read Rosch’s response. Had to go back through all the data to make things add up. Which they still don’t, but it makes more sense than it did before.
Thank you for taking the time! Gotta keep after the bastards.
Google is clearly Too Big To Obey Laws
Tweeted. Recommended.
Thanks Jane.
Another pelt on FDL’s crowded wall of killer scoops.
From October 2005 Temple of the Dust Bunnies
Clearly Rosch and the others at the Commission have a further duty and obligation regarding this case. If they do not immediately seek to straighten out the consequences of something they knew NOTHING about … then either they are are willing to walk away, comfortable in their ignorance, or they simply do not care to do their jobs properly.
Frankly, ignorance is no excuse, and the judge must have ASSUMED that the commissioners KNEW about the cookies and the implications therein. So Judge Susan Illston also needs to very quickly rethink what she has done, else we are left to understand that ignorance rules and that subsequent awareness matters … not. A VERY poor way to “run” a government and contrary to reason and justice in the most fundamental and disgusting of ways … especially considering the attitude of Google and the behavior of Congresswomen Lofgren and Eshoo.
Unfortunately, Jane, you seem to be the only one seriously covering this case and the media appears to have no interest whatever, therefore, “the people” will not even come to know what is going on; again, a VERY poor way for “democracy” to “function” and further evidence that the political class, which includes the media, have no interest at all in permitting the people to “participate” in shaping “policy” in ANY meaningful way.
Again, Jane, I thank you for covering this case and for applying a wee bit of pressure on the conscience of someone who should, now that they KNOW, act properly and in accord with what the oath of office demands of them …
We shall see.
DW
I just googled Jane Hamsher plus google to make sure these posts come up. They do. The conspiracy theorist in me thought they might not appear. Did you know that you can appeal to google if you feel your name or site should be prioritized higher in a search? A friend of mine did it once, albeit a well connected friend. Still, it is not something they seem to publicize.
Weirdly there was a lot of media interest, and many outlets had people in the courtroom.
But the way most reporters cover trials does not include reading all the briefs. (Understandably — it takes a shitload of time.) I did read through them, and the media accounts on Friday did not jibe with what I knew of Rosch’s dissent. Most of those journalists probably would not know who Rosch was, let alone think to contact him. It’s just a different form of coverage.
Right on, Jane, you did good, as my father liked to say.
Thanks, Jane, ’cause this is tough work to ferret out the “unassailable” Facts.
I would add that Google should be financially penalized to the tune of $180 million smackers with an additional $10 million set aside that covers the administrative costs associated with cutting a check to each Safari user. Further, Apple should not be financially compensated due to their obvious failure “to protect the data.”
Unfortunately, the White House will not terminate the employment of the Commissioners nor will the White House terminate the employment of the senior staffers at the FTC. And of course, the Commissioners will not terminate the senior staffers at the FTC for ‘gross incompetence.”
And as an aside, none of these digital behemoth should not be permitted to “hack” nor be permitted to “purchase” hacked data, as well. And luckily for the “judge” I too would be asking for her public resignation.
Jaango
Such a “form of coverage” as the media provides, Jane, is remarkably deficient in facts and implication. I’ve no doubt that the media is “interested” … and some “aspects” of the media should even be concerned, for Google will cut many media “players” out of the “Official History” loop and render them but “bit” players, among the thousands of cheering “extras” whom we read and hear all about in the drivel of the daily “news” propaganda fests . However, the depth and breadth of coverage which you provide is clearly attentive, informed, and able to provide necessary and meaningful “perspective”, which is seriously lacking, “elsewhere”.
I have seen nothing to equal what you are doing, owing, no doubt, to both your understanding (which you are willing to work for) and your courage in reporting what you have come to understand both to those of us at FDL and to those, such as Commissioner Rosch, who ought to be very grateful and make serious use of the “intelligence” and “perspective” which you have thoughtfully provided him. That is, if he is paying serious attention and willing to honestly do his job … which MUST require more than going through the motions and “passing go” as he spends time at the “office”.
It is not just a different “form of coverage”, we see displayed,it is a wholly different grasp of responsibility and conscience. In my opinion.
DW
LOL, Rosch — the only commissioner who has been standing up for consumer privacy — is about to be replaced by a Google lackey, Joshua Wright:
http://americablog.com/2012/09/obama-ftc-appointee-joshua-wright-has-ties-to-google-google-has-had-business-before-ftc.html
Things are moving in the wrong direction.
“Things are moving in the wrong direction.”
There seems to be a “lot” of that … lately, Jane.
Looks like one hell of a GREAT big fire might be required for Obama’s footsies to feel any warmth … even a tingle …
(But then, you say, things are about to “move” the Wright way?)
;~DW
Sort of off topic- story on Bloomberg today about GOOG’s antitrust trouble:
Sort of on topic- EPIC submits comments to FTC about a consumer tracking settlement (not GOOG’s):