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
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
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.
ISPLA Director of Government Affairs
To join us and support our proactive efforts please visit www.ISPLA.org
We do much more than just keeping the profession informed!
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