The Electronic Privacy Information Center has filed a complaint with the Federal Trade Commission against data firm Acxiom Corp. and airline JetBlue Airways Corp., alleging that both companies performed deceptive trade practices when they provided consumer data to a Department of Defense contractor.
Separately, the airline has been hit with a class-action lawsuit by Utah attorney James W. McConkie. McConkie filed a request for class-action certification on behalf of JetBlue’s passengers who flew between 2001 and October 2002.
According to EPIC complaint, JetBlue provided itinerary information on more than 1.5 million passengers to Torch Concepts of Huntsville, AL, a firm that offers pattern recognition technology it developed for the Department of Defense, at the behest of the Transportation Security Administration. Torch Concepts then purchased overlay information from Acxiom on 40% of the individuals in this file, according to EPIC’s complaint.
The information was used by Torch Concepts to generate a presentation for the Tennessee Valley Chapter of the National Defense Industries Association in late February, according to the EPIC complaint. The presentation had been posted on the Tennessee Valley Chapter’s Web site until Sept. 16, according to the court papers.
EPIC claims that both JetBlue and Acxiom violated their privacy policies in doing so. In addition to requesting that the commission investigate JetBlue’s and Acxiom’s information collection and dissemination practices, EPIC is requesting that: both firms contact consumers affected; all information provided to Torch Concepts be destroyed; both companies "obtain the express consent of any consumer whose information is disseminated in this manner in the future"; both firms be permanently enjoined from violating the Federal Trade Commission Act, as EPIC has alleged; and that both companies pay an undisclosed amount in civil penalties and other relief.
Acxiom issued a statement denying the charges, saying that it "acted in a manner that complied with applicable laws and with our published policy."
Acxiom confirmed that "Torch Concepts was acting under contract to the Department of Defense in their efforts to research ways to improve military base security. Our policy clearly states that we ‘provide information products which include financial information, Social Security Number and other related information where permitted by law’ and that this information is ‘provided to government agencies for the purposes of verifying information, employment screening and assisting law enforcement.’"
JetBlue stated that it shared passenger itineraries at the request of the Department of Defense, and that it did not receive any payment for the information.
The airline also announced that it has retained Deloitte & Touche to help it analyze and further develop its privacy policy.
JetBlue’s statement further claimed that according to Torch Concepts’ outside counsel, "no identifiable customer data was released to any third party, including the Department of Defense or the Transportation Security Administration, and that all the data has been destroyed."
The airline’s troubles don’t end with EPIC’s actions, however. Utah Attorney James W. McConkie filed a complaint and request for class certification with the Third Judicial District Court in and for Salt Lake County. The suit does not mention Acxiom.
In the suit, McConkie claims that JetBlue’s claims within its privacy statement were fraudulent, and that the airline violated its promise not to share personal information with any third parties. The complaint also cites the airline for invasion of privacy, and violation of the Utah Consumer Sales Practices Act.
The suit seeks compensation for its parties, but not to an extent that it would harm JetBlue’s viability.
