Nader's On Microsoft's Case, TooNader's On Microsoft's Case, Too

The Consumer Project on Technology joins privacy groups in opposing Microsoft.

information Staff, Contributor

August 15, 2001

2 Min Read
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Ralph Nader's Consumer Project on Technology has joined a complaint before the Federal Trade Commission that alleges new Microsoft products breach fair-trade regulations.

At a press conference in Washington, the Electronic Privacy Information Center, which lobbies for privacy legislation, Wednesday said Nader's group joined it and 12 other privacy and consumer-protection groups in their complaint about Microsoft to the FTC, originally filed July 26. The organizations say Microsoft's Passport Internet-authentication software, combined with the company's forthcoming Windows XP operating system, unfairly collects personal information from computer users. The ubiquity of Microsoft's products will make it hard for consumers to escape submitting personal information to the company, Epic says.

The July 26 complaint alleges that "Microsoft has engaged in unfair and deceptive trade practices intended to profile, track, and monitor millions of Internet users." The groups asked the FTC to issue an injunction against the Oct. 25 shipment of Windows XP. Nader and the Consumer Project on Technology have been nettling Microsoft for years--the activist urged the Department of Justice to bring its antitrust case against the company in 1998.

Microsoft requires users of its MSN Web portal, instant-messaging software, and other products, to register for a Passport account by submitting to the company their name, E-mail address, city, state, and ZIP code. A Microsoft spokesman says the company will withdraw the city, state, and ZIP-code requirements within a week, as planned. Microsoft also offers a digital-wallet version of Passport that stores consumers' credit-card numbers for easier log-on to popular E-commerce Web sites.

The spokesman says the company has been nothing but upfront with users. "I don't think you'll see one instance where we deceive a consumer about what we're collecting from them," he says. Windows XP users will need a Passport account to register their PCs and use features of the operating systems. But Passport isn't required in order to use the XP, he says. "If consumers don't trust us, we won't succeed."

Earlier this month, Microsoft said its Internet Explorer 6.0 browser will support a new Web-standard technology called the Platform for Privacy Preferences, which warns users when Web sites don't meet their privacy preferences. Microsoft also said it's moving billing and customer-profile databases out of the company organization that maintains Passport.

Epic and its co-complainants say the changes don't go far enough. The groups say Microsoft's stewardship of user's personal information will become a bigger issue when the company releases personalized Web software code-named HailStorm over the next year. "Coercing users to identify themselves to enjoy basic Web services is an unfair trade practice," today's complaint amendment says. Epic couldn't be reached for comment on deadline.

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