[luau] And Microsoft got away from this?

W. Wayne Liauh LiauhW001 at Hawaii.rr.com
Thu Aug 8 09:58:01 PDT 2002


I have always wondered how we could/should, as always, let Microsoft 
commit such egregious crimes and get away without even a slap on the wrist?

I am sure the following story will soon be discussed at Slashdot:


WASHINGTON (Reuters) - Microsoft Corp. (NasdaqNM:MSFT 
<http://finance.yahoo.com/q?s=msft&d=t> - News 
<http://biz.yahoo.com/n/m/msft.html>) agreed on Thursday to submit to 20 
years of U.S. government oversight of its online identity service in 
order to settle charges that it misled consumers about security and 
privacy standards.

Microsoft's Passport service, which aims to make online shopping easier 
by storing passwords and credit-card numbers, came under scrutiny by the 
U.S. Federal Trade Commission last year after privacy groups said it 
would give the software giant unprecedented control over users' personal 
information.

FTC officials said they found that Microsoft did not adequately protect 
Social Security numbers and other personal information it collected, and 
that the service tracked users' Web-browsing habits without their 
knowledge.

The company also falsely claimed that it would enhance the security of 
Internet transactions, the FTC said.

"They were saying that they had reasonable and appropriate security 
procedures. We thought those promises were deceptive," FTC Chairman 
Timothy Muris told reporters, adding that he was unaware of any breaches 
to the system.

Microsoft agreed to stop making false claims about Passport's 
data-collection practices and security protections, and agreed to set up 
an enhanced computer-security system that must pass independent review 
every two years, for a period of 20 years.

Microsoft paid no fines, but would face fines of $11,000 per count if it 
does not maintain the security program, an amount that could add up 
quickly given the service's 200-plus million users.

More . . .

http://biz.yahoo.com/rf/020808/tech_microsoft_privacy_1.html




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