Carrier IQ Faces Lawsuits, Lawmaker Seeks FTC Probe

8/3/2019 Carrier IQ Faces Lawsuits, Lawmaker Seeks FTC Probe

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Larry Lenhart, CEO of Carrier IQ, talks about the software in this screenshot of a promotional video. The companyis facing lawsuits and potential regulatory probes over its mobile diagnostic software that critics say violates userprivacy.

(Credit: Carrier IQ)

Carrier IQ's woes continue to multiply.The Mountain View, Calif., startup now faces four lawsuits over allegations that its cellphone

software violates the privacy of mobile users. A congressman has also asked the U.S. Federal

Trade Commission today to investigate those charges.

The developments aren't terribly surprising given the media firestorm aroundCarrier IQ, which

programmer Trevor Eckhart alleges records keystrokes from mobile phones and sends all sorts

of personal information off the phone. Carrier IQ denies that and says limited data is gathered

for diagnostic purposes only. (CNET has a FAQ with more detailed information about exactly

what Carrier IQ is doing to your mobile device.)

A lawsuit filed today in federal court in San Jose, Calif., alleges that Carrier IQ "is involved in

installing spyware on mobile phones and using that hidden software to siphon off private

consumer data without consumer consent," attorney Ira Rothken told CNET. The suit accusesCarrier IQ of violating various federal and state laws, including the California Anti-Spyware

Statute and the right to privacy provision of the California Constitution.

A separate suit filed in the court yesterday targeted Carrier IQ and phone makers HTC and

Samsung, also alleging violations of the Federal Wiretap Act and California's Unfair Business

Practice Act. "The lawsuit alleges that, in reality, the program does record keystrokes and the

Carrier IQ faceslawsuits, lawmakerseeks FTC probe

CNET News InSecurity Complex

by Elinor Mills | December 2, 2011 1:09 PM PST

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2/8

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content of messages, and could transmit the information to third parties, possibly including

information sent to secure websites using HTTPS security protocols used in e-commerce and

other security-sensitive sites such as banking," according toa statement plaintiff attorney Steve

W. Berman released today.

Lawsuits also were filed in Chicago and St. Louis yesterday against Carrier IQ, HTC and

Samsung for alleged violation of the Federal Wiretap Act, according toPaid Content. The law

forbids the interception of "oral, wire or electronic communications." Penalties are $100 per day

per violation.

"The company has not seen or been served on any lawsuit, so we cannot comment on the

allegations at this time," Carrier IQ said in a statement today. "Carrier IQ is aware of variouscommentators alleging Carrier IQ has violated wiretap laws and we vigorously disagree with

these assertions."

Meanwhile, Rep. Edward Markey (D-Massachusetts)asked the FTC to investigate the Carrier

IQ situation. "This software raises a number of privacy concerns forAndroid, Blackberry, and

Nokia users," Markey wrote in a letter to the commission. "Consumers neither have knowledge

of this data collection, nor what Carrier IQ intends to do with this information. As a co-Chair of

the Congressional Bi-Partisan Privacy Caucus, I am concerned that this practice violates the

privacy rights of consumers."

The data regulator in Germany has sent a letter to Apple requesting further information,

according to the Paid Content report. Apple said yesterday that it stopped using Carrier IQ

before releasing iOS 5 last month and will remove it entirely from its products in a future

software update.

The Consumer Watchdog activist group asked the U.S. Justice Department and the Federal

Communications Commission to investigate the "Spyphone Scandal." "The probe should extend

beyond the software developer, Carrier IQ, and include operating systems developers like

Google and Apple as well as carriers and device manufacturers, the nonpartisan, nonprofit

public interest group said.

Sen. Al Franken, a Minnesota Democrat, sent

a letter to Carrier IQ yesterday asking it to

answer questions about the data it gathers by

December 14.

The lawsuits do not name the carriers, despite

the fact that Carrier IQ says it is merely doingtheir bidding. The carriers decide what types

of data to collect, how much and when,

Andrew Coward, vice president of marketing

at Carrier IQ, told CNET. The carriers ask the

device manufacturers to pre-load the software

on their phones.

So far, Verizon says it does not use Carrier IQ, while Sprint, AT&T and T-Mobile say they use it

to improve network performance.

"T-Mobile utilizes the Carrier IQ diagnostic tool to troubleshoot device and network performance

with the goal of enhancing network reliability and our customers' experience," the carrier said in

a statement sent to CNET today. "T-Mobile does not use this diagnostic tool to obtain the

content of text, email or voice messages, or the specific destinations of a customers' internetactivity, nor is the tool used for marketing purposes."

Nokia and BlackBerry maker Research in Motion say they do not pre-install Carrier IQ on their

phones, while HTC, Samsung and Motorola say they pre-install it at the carrier's request.

Google, meanwhile, says it does not use it on Nexus devices.

Carrier IQ is getting vilified for making a "rootkit keylogger"while carriers are the ones in control

of the data, which is collected without notice to or permission from users.

Updated 2:12 p.m. PTwith fourth lawsuit filed.

How Carrier IQ was wrongly accused of

keylogging

What does Carrier IQ do on my phone--

and should I care? (FAQ)

Android app tells you if Carrier IQ is on your

phone--kinda

About Elinor Mills

Elinor Mills covers Internet security and privacy. She joined CNETNews in 2005 after working as a foreign correspondent for Reuters in

Portugal and writing for The Industry Standard, the IDG News Service,

and the Associated Press.

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3/8

Topics: Corporate and legal, Consumer software and hardware, Privacy and data protection | Tags:

lawsuits, congress, DOJ, FCC, Carrier IQ

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comments18

I have $1,000 saying that the company is really a shell company and its "clients"

are the ones who actually own it!

Posted byaka_tripleB(1069 comments )

I have $1000 that says a dozen entities are at this moment looking to replace Carrier

IQ.

Nothing will stop corporations from spying on consumers. It is their right and mandate

to inundate consumers with "effective" advertising.

Posted byrtyurty(4 comments )

Why? The government has been collecting statistics on us anyway. Police requirecertain information and your phone records can provide that information. The FBI

knows more about each of us than we know ourselves.

It doesn't really matter what we do. There is no real privacy once you're

connected.

Posted bybousozoku (439 comments )

And I reiterate, Sprint (and others) will be getting a phone call soon from the FTC.

Posted bygork_platter(287 comments )

Not sure why carrier IQ being sued. Yes, they wrote the software, and it's would give

privacy advocates and most of us nightmares, however they have nothing to do with

it's implementation on devices, nor do they capture the data for the carriers.

That's analogous to a knife company being sued because a murderer used their

brand of knife to kill someone. Preposterous.

December 2, 2011 2:00 PM(PST) Like (3) Reply Link Flag E-mail

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4/8

It is greedy lawyers, still not sure if a law is being broken or who broke it. So we

will file suit first against everyone in hopes it gets settled with a big chunk of cash.

Posted byDrtyDogg (2419 comments )

No it is not. Carrier IQ wrote the software knowing it would be used in violation of

customers rights. That makes them party to the crime. To use your analogy it is

like the murder placing an order for a knife with a knife company and telling them

he will use it to kill people and the knife company completing the order.

Posted byelitistnot (40 comments )

And Robert Oppenheimer thought he was just making a toaster too.

I get that the software was written with a legitimate purpose in mind. But creating

software that records every keystroke of every user and sends it back to you, yourclient, big brother or whoever and then saying you didn't expect it to be used that

way is like Dr. Oppenheimer saying "yeah, our clients paid us to build this bomb

that can kill tens of thousands of people in seconds, but we didn't think they would

actually use it for that."

There are plenty of dirty hands in this debacle and I'm sure the carriers will be

named as defendants as soon as the evidence starts coming out implicating them

as having received any of the pilfered data. It's true that the lawyers will be the

biggest single recipients of any monetary penalty, but I don't feel sorry for Carrier

IQ. I can not imagine any legitimate diagnostic reason to intercept, read and

forward to yourself the unencrypted contents of information people send over an

SSL connection. If you're unethical enough to intentionally create an application

that does that - even if your client asks you to do it; you deserve to face the music.

Posted bymainstreet25 (2 comments )

Posted byStuartCarnie (2 comments )

What recall? Ever hear of a software upgrade or do you have an Android phone?

Posted byinplainview (288 comments )

@inplainview

You're probably right that the problem could be right that a software upgrade,

however, there is a problem you're overlooking: how many lawsuits will result from

the upgrade bricking the phone? Even if only 1% of the phones get bricked, that's

still well over one million phones. There's also the companies that have already

said that some of their phones with the software on it won't get updated software

that doesn't. I won't single out Apple, but there's at least one company that won't

fix its phones that way.

Posted byaka_tripleB(1069 comments )

Can't wait to see the mandatory recall of 100+ million phones.

Posted byelitistnot (40 comments )


December 2, 2011 3:02 PM(PST) Like (3) Link Flag E-mail



December 2, 2011 3:22 PM(PST) Like Reply Link Flag E-mail



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5/8

Well that didn't take long. I knew the Government would be all over this when the story

broke. Carrier IQ and companies using them will pay out millions in fines. I would love

to know where that money goes though because it sure doesn't come to us.

Posted byboydp182 (107 comments )

I think the best solution at this point for Android users with CarrierIQ on their phone, is

to root your phone and install version of Android, that doesn't have CarrierIQ on it (likeCyanogenMod). Even if anything comes of the government's probe, older phones

probably won't get any update to remove it.

Posted bymike31082 (20 comments )

While it has little or nothing to do with the Carrier IQ solution, operators are

REQUIRED to collect a lot of data about their subscribers because of CALEA. (see

http://www.askcalea.net/docs/hr103827.pdf)

Mobile operators are (mostly) very good at switching data and radio signals so thatconsumers have reliable connectivity. While operators would LIKE to better

understand their consumers data, they simply do not have the expertise or business

models/justification. To date, making sense of 10s of millions of users' data in any

useful way is a daunting and expensive endeavor.

Posted byEmo70 (1 comment )

Gun manufacturers have a federal law that shields them from liability. No one can

sue a gun manufacturer for their making a gun that is later use for a crime.

Lesson: it helps to have a lobby that has lots of money and influence. The NRA is

just such a lobby.

Posted byirondog1970 (458 comments )

How is it the carriers have wiggled out of this one?

Does this mean I can sue Smith & Wesson for my cousin getting shot during a home

invasion 2 years ago?

Posted byH00L1GAN(1638 comments )

This should be interesting.

If carrier iq doesn't do what the hacker claims it does after the investigation, serious

doubts about the hacker will arise and possibly be counter sued. Else carrier iq will

become a gov't controlled entity since they need all the power it has over cell phones

and then each and every cell phone in the US will get it regardless without the user

knowing and no way of opting out of it.

Posted bysharmajunior(2235 comments )

Where's Google in all this? Given that it's an Android issue, it seems only right that

they be a part of this.





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6/8

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Flying robots build 20-foottower in France

In the first show of its kind, flyingrobots build a model of a futuristiccity that would be one-third of amile high.

Crave Renewable energy on Indianland (photos)

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