Carrier IQ Meets with FCC and FTC, Explaining Privacy Concerns

Carrier IQ, the embattled phone-monitoring software maker, sought meetings with the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) to educate the two agencies about the functionality of its software and answer any and all questions this week. Although Congressman Markey has asked the FTC to investigate the practices of Carrier IQ, we are not aware of an official investigation into Carrier IQ at this time.

The Federal Trade Commission is the US organization that protects consumer privacy and enforces privacy-related laws, and would be Carrier IQ’s primary foe if an investigation is undertaken. “Consumers and families need to understand who is siphoning off and storing their personal information every time they use their smart phone,” Markey said. “I am asking the Federal Trade Commission to investigate this practice, and I will continue to monitor this important privacy issue.”

However, the FTC did not immediately respond to a request for information, the agency does not generally reveal the subjects of its investigations unless the company at issue makes it public. For those who need a refresher, Carrier IQ made headlines in recent weeks after a researcher, Trevor Eckhart, suggested that the technology is secretly embedded on many popular phones and can gather personal data about users. Carrier IQ said its technology is used for diagnostic purposes and denied logging keystrokes or being able to read the content of emails, text messages, or Web sites.

Lawsuits have been filed against Carrier IQ and some carriers, while lawmakers are peppering Carrier IQ with questions and asking the FTC to investigate - which looks like it just may be happening. The public backlash has been fast and furious, in part fueled by the company's reaction to the initial report - Carrier IQ served a cease-and-desist order on Eckhart. The company eventually backed down after the Electronic Frontier Foundation got involved on Eckhart's behalf, but the damage was done as the move made it seem like Carrier IQ was trying to censor a whistleblower and had something to hide.

More recently, there were reports that the FBI was using Carrier IQ software. A blogger filed a Freedom of Information Act (FOIA) request asking for details about the agency's use of the technology, but that request was denied because, the FBI said, it might interfere with law enforcement efforts. Someone speculates that "What is still unclear is whether the FBI used Carrier IQ's software in its own investigations, whether it is currently investigating Carrier IQ. The response would seem to indicate at least the former, since the request was specifically for documents related directly to accessing and analyzing Carrier IQ data."

Carrier IQ came out on the charm defensive, releasing a comprehensive FAQ detailing exactly what – and what not – was supposedly collected by its network monitoring tools. Nonetheless, many carriers themselves have been quick to put distance between them and the analytics firm.

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Carrier IQ was found in New Android Applications

The company behind the now-notorious Carrier IQ software that has been found to log every keystroke pressed, website visited and text message sent by 150 million mobile phone users. Carrier IQ, of course, professes its innocence, but the company has also received some public support from security researchers who say Carrier IQ software is only tracking diagnostic information and likely is not violating user privacy. Now, Carrier IQ has elaborated upon many arguments with a more detailed breakdown of how its software functions, and a more substantive defense of its practices.

During a recent interview with the Register, Carrier IQ VP of marketing Andrew Coward acknowledged that his company's mobile software logs keystrokes, intercepts text messages and gathers geographic data, but insisted that the overwhelming majority of this information is discarded almost as soon as it comes in, thereby posing virtually no threat to user privacy.

Carrier IQ only retains text messages or keystroke patterns that carry proprietary tags. These tags identify all transmissions that could be used to populate analytic data, including some that may be considered sensitive. If a user drops a call, for instance, the system will note his or her location, and the numbers of each party. In other cases, the company may receive a special SMS, which provides Carrier IQ with important diagnostic information.

Now, Carrier IQ has legal and publicity problems to handle. One new class-action lawsuit names both Carrier IQ and HTC, accusing the companies of violations under the Federal Wiretap Act. Another lawsuit was filed against Carrier IQ as well as HTC and Samsung, both of which have confirmed installing Carrier IQ software on their Smartphone, saying they do so at the request of wireless carriers.

Why Android only? Carrier IQ is no longer supported as of iOS 5 (Apple insists its customers have to opt-in before any information about their Smartphone is shipped off to Apple HQ), and blocking its effects on your iOS 5-based iPhone is super-easy: Click on your Settings button, then General, About, Diagnostics & Usage, and select " Don't Send."

However, Carrier IQ is a bit more integrated within the Android OS – so much so, that you'll need to root your device prior to attempting any removal efforts. But the first step in the process is finding out whether your Smartphone has Carrier IQ installed to begin with. And Lookout's new application makes this a one-touch affair.

Carrier IQ boasts that its software is deployed on more than 141 million handsets, and has operated for several years without any major level of controversy. Clearly, Smartphone would be capable of tracking much of our activity even if Carrier IQ never existed. But the lawsuits filed against Carrier IQ and its customers, and forthcoming responses to Franken's letters, should shed more light on exactly what information is collected and how it is used.

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