In re: Uber Privacy Policy
Top News
- Court of Appeals Vacates FTC's LabMD Order, Finding It Lacked Specifics: The Court of Appeals for the Eleventh Circuit has vacated an administrative order by the Federal Trade Commission, which required the medical testing company LabMD to implement "reasonable" data security measures, finding that the order was not specific enough to be enforceable. The court explained that the FTC can require companies to implement data security measures as long as it provides specific guidance. EPIC has repeatedly urged the FTC to mandate specific data security requirements in consumer privacy settlements, including in comments on recent settlements with Uber and PayPal. EPIC also submitted an amicus brief in FTC v. Wyndham, a case in which the Third Circuit Court of Appeals upheld the FTC's authority to enforce data security standards. (Jun. 7, 2018)
- EPIC Urges FTC To Strengthen Revised Settlement with Uber: In detailed comments to the Federal Trade Commission, EPIC urged the FTC to strengthen a revised settlement with Uber. The FTC reached a settlement with Uber back in August of 2017 for its numerous privacy abuses, including secretly tracking riders and using software to evade authorities. But shortly after announcing the settlement, the FTC discovered that Uber had hid a massive data breach and used its bug bounty program to pay off the hackers. As a result, the FTC required Uber to submit all of its privacy assessments to the Commission. While EPIC supported the FTC’s action, EPC said that "the FTC should make Uber's privacy assessments public so that consumers can evaluate whether the company is meeting its obligations under the Consent Order." The FTC's initial investigation and subsequent settlement with Uber were prompted by EPIC's complaint against Uber's in 2015. (May. 15, 2018) More top news »
Background on Uber
Uber is an American company that allows consumers to arrange transportation and other third-party services by way of a smartphone application. The app connects local drivers and riders by utilizing riders’ phone GPS capabilities. According to recent estimates, Uber has more than 8 million users and 160,000 drivers active on its service worldwide. The company currently operates in approximately 150 U.S. markets and is estimated to be valued at $41 billion.
To request a ride, Uber passengers select which kind of car service they would like to request on the Uber app and then enter in their location and destination address either manually or through the app’s automatic GPS or Wi-Fi location detector. The app alerts users when a car has been confirmed and shows the driver’s name, license plate number, route, and estimated time of arrival. After the ride is completed, a receipt is emailed to customers. Passengers and drivers rate each other, as an incentive to both encourage good customer behavior and provide feedback on drivers.
EPIC's Complaint
On June 22, 2015, EPIC filed a formal complaint with the Federal Trade Commission regarding the impact on consumer privacy of Uber's upcoming privacy policy changes and advertising techniques. As of July 15, 2015, Uber is replacing its current privacy policy to include changes to its collection of consumer location data, access to contact data, and its advertising practices. Uber alleges that “users will be in control: they will be able to choose whether to share the data with Uber.” However, not all users have the ability to control the data collected by the Uber app, and critics have characterized the proposed changes as being overly intrusive, especially due to Uber’s recent privacy protection failures. Uber is significantly expanding the potential uses of user information for advertising purposes, and has made clear that it intends to incorporate the data of Uber users into “potential new use cases.” The proposed changes confuse Uber customers’ understanding of the use of their location data and their exposure to advertising, and constitute an unfair and deceptive trade practice, subject to investigation by the Federal Trade Commission.
The Federal Trade Commission Act (“FTC Act”) prohibits unfair and deceptive acts and practices, and empowers the Commission to enforce the Act’s prohibitions. Under the Act, a business practice is deceptive if it “involves a representation, omission or practice that is likely to mislead the consumer acting reasonably under the circumstances,” and is “material,” or meaningful to the consumer. Unfair acts under Section 5 are those that “cause[] or [are] likely to cause substantial injury to consumers which [are] reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition.”
Legal Theories
EPIC charges Uber with Deceptive Representation regarding User Control
EPIC charged Uber with deceptive representation in violation of Section 5 of the Federal Trade Commission Act for their misleading portrayal of user privacy control. While Uber’s new easy-to-read policy initially received accolades, such plain language makes it easy to see exactly how much information Uber is acquiring from its users. While Uber purports to commit to user privacy in official statements, it remains unclear whether or not users can in fact choose to withhold data from Uber.
One of the major changes in the new policy allows Uber to conduct real time tracking of passengers while the app is not in use. While the app is running in the foreground or background, Uber is able to collect information of your precise location. Even if location services or GPS is disabled, Uber can still derive a user’s location from their phone’s IP address. Another significant change in the policy permits Uber to access users’ address books. Uber may not only access but store names and contact information from the address book and use it to “facilitate social interactions” and send out promotional communications. Users and experts have characterized the new policy changes as being overly intrusive, especially due to Uber’s recent privacy protection failures.
In response to criticism about the changes to the privacy policy, an Uber spokesperson attempted to clarify that tracking passengers in real time and accessing users’ address books are merely “potential new use cases” of its customers’ data. In other words, how Uber will utilize the large amount of newly collected is data has yet to be determined.
Uber’s representations about user control are misleading. Uber stated that if the company ever launches the controversial features, the app would still work if the user chooses not to opt in. However, the new privacy policy relies on iOS permission systems through which Uber users may opt in to the collection of certain data. When a user installs the Uber app on their phone, the iOS platforms will alert the user that Uber wants to access certain types of information at which point you can consent, or not consent, to that request. Other platforms, such as Android, only notify the user of the request, but use of the app itself constitutes consent. Once Android users use the app, they cannot stop or modify Uber’s access to their information.
EPIC Charges Uber with Deceptive Representation regarding Ability to Opt Out of Targeted Advertising
EPIC further charged Uber with deceptive business practices in violation of Section 5 of the FTC Act because of the company’s policy change regarding targeting advertising. In addition to its overall assurances about data privacy, Uber told customers in 2013 that they would be able to opt out of targeted ads. Customers would reasonably assume that this is still the case. In fact, Uber customers can no longer opt out of targeted ads. As a result, users’ personal information may be disclosed to parties they do not intend or expect to share it with. Uber’s failure to provide a means of opting out of targeted advertising in its new privacy policy therefore constitutes a deceptive act or practice in violation of Section 5.
EPIC Charges Uber with Deceptive Representation Regarding Data Protection
EPIC also charged Uber with engaging in deceptive business practices in violation of Section 5 of the FTC Act in representing that its users’ Data Would be Protected by Robust Security Measures. Uber claims in its new privacy policy that it will “take appropriate measures to protect [users’] personal information.” But Uber has a history of poor data security. Uber’s database was hacked in early 2014, exposing tens of thousands of its drivers’ information, but the company did not discover the breach for months and took an additional five to notify its drivers. Uber has yet to release what its practices for securing its users’ and drivers’ personal information are. Multiple security experts have stated that Uber is the largest ever “cyber-espionage target” of its kind (taxi, car service, or other such private entity) and likely vulnerable to attacks.
In addition, Uber has a history of allowing people within and without the company to have unrestricted access to its customers’ personal information. Toward the end of 2014, individual employees could use “God View,” an “easily accessible” internal company tool, to obtain a specific rider’s real-time and historic location data without notifying or requesting that rider’s permission. Potential employees have also been granted access to Uber’s “God View” in their visits to the company, allowing non-Uber employees to temporarily track friends, co-workers, or politicians’ family members. While Uber has stated that its employees can access and use customers’ information only for “legitimate business purposes,” it has not disclosed what those purposes might be. In the past, one of the official reasons Uber used riders’ personal information for was to map customers’ “Rides of Glory” by tracking one-night stands and subsequent “walks of shame.” Uber’s opaque data security practices prevent customers from determining whether Uber is actually taking “appropriate measures” to protect their data.
EPIC charges Uber with Representation and Unfair Trade Practice regarding its Tracking of Users’ IP Addresses
EPIC charged Uber with an unfair business practice in violation of Section 5 of the FTC Act. EPIC explained that tracking users by their IP address without their knowledge “poses potential safety risks” and “undermines consumers' decision-making autonomy.” It therefore causes substantial injury to consumers that is outweighed neither by countervailing consumer benefit nor competition. In order to avoid the injury, users must either delete the app or cease to use Uber's services. As such, the injury is not reasonably avoidable.
EPIC has also charged Uber with a deceptive practice. As Uber represents that users will be able to choose whether to share location data to Uber. This statement will likely mislead reasonable consumers into believing they can choose not to disclose location data with Uber after downloading the app.
Resources
- Letter from EPIC Exec. Dir. Marc Rotenberg to FTC Comm’r Christine Varney (Dec. 14, 1995)
- Julia Horwitz & Marc Rotenberg, Privacy Rules for Uber, The Huffington Post (Dec. 12, 2014)
- Federal Trade Commission, FTC Charges Deceptive Privacy Practices in Google’s Rollout of Its Buzz Social Network (Mar. 30, 2011)
- Fed. Trade Comm’n, FTC Policy Statement on Deception (1983)
- Fed. Trade Comm’n, FTC Policy Statement on Unfairness (1980)
- Craig Timberg, et al. Uber Executive Stirs Up Privacy Controversy, Wash. Post (Nov. 18, 2014)
- Craig Timberg, Is Uber’s Rider Database a Sitting Duck for Hackers?, Wash. Post (Dec. 1, 2014)
- Sam Frizell, What Uber Still Won’t Say About Your Data, Time (Jan. 30, 2015)
- Eric Newcomer, Uber Broadens Rider Privacy Policy, Asks for New Permissions, Bloomberg, (May 28, 2015)
- Hogan Lovells, Review and Assessment of Uber’s Privacy Policy (Jan. 2015)
News Reports
Articles About EPIC's Complaint
- Group Files FTC Complaint Over Uber Privacy Policy, CBS New York (June 24, 2015)
- Are you worried about Uber's new privacy policy?, Lancaster Online (June 24, 2015)
- Lisa Vaas, Uber wants even more customer data - EPIC asks FTC to slam on the brakes, Naked Security (June 24, 2015)
- Uber may be tracking you 24/7, ABC15 Arizona (June 23, 2015)
- Uber’s Revised Privacy Policy Could Allow Users To Be Tracked 24/7, CBS San Francisco (June 23, 2015)
- Jennifer Abel, EPIC fail for Uber's new privacy policy: FTC asked to block "deceptive data collection", ConsumerAffairs (June 23, 2015)
- Hot on your trail? Complaint filed against Uber for allegedly tracking passengers, accessing personal info, FOX6 (June 23, 2015)
- Rhiannon Nee, Uber To Track Your Data, Even When The App Is Closed, GeekSnack (June 23, 2015)
- Lily Altavena, Uber might soon track you even after your ride is over, Kicker (June 23, 2015)
- Jody Godoy, Uber's Tracking, Privacy Policies Deceptive, Group Tells FTC, Law360 (June 23, 2015)
- Meredith Clark, Could Uber Be Tracking You Right Now?, Refinery29 (June 23, 2015)
- Jay Barmann, Now Uber Wants To Track Your Location Even When App Is Not Running, SFist (June 23, 2015)
- John Kennedy, Location data complaint filed against Uber, Silicon Republic (June 23, 2015)
- Collen Kriel, Uber to become Big Brother unless FTC halts new privacy policy, SiliconANGLE (June 23, 2015)
- Uber faces FTC complaint following changes to app privacy policy, Techworld (June 23, 2015)
- Larry Banks, Uber faces legal challenge over plan to track users when not using the app, Thai Tech (June 23, 2015)
- Robin Levinson King, Privacy advocates file complaint over new Uber policy, Toronto Star (June 23, 2015)
- Jeff John Roberts, Uber privacy charges are overblown—except for one thing, Fortune (Jun. 23, 2015)
- Iain Thomson, Uber app will soon maybe track you 24/7, cry privacy warriors, The Register (Jun. 23, 2015)
- Uber may track you 24/7, CNN Money (Jun. 23, 2015)
- Uber's New Tracking Policy Raises Privacy Concerns, ABC7 News (June 22, 2015)
- Roger Fingas, Privacy group asks FTC to limit location, contact sharing in Uber's mobile apps, AppleInsider (June 22, 2015)
- Cyrus Farivar, FTC asked to block Uber from getting location data in background, Ars Technica (June 22, 2015)
- Hamza Shaban, Uber Under Fire For Plan To Track Users, BuzzFeed (June 22, 2015)
- Mary Beth Quirk, Privacy Group’s FTC Complaint: Uber Shouldn’t Track Users When They’re Not Using The App, Consumerist (June 22, 2015)
- Nicole Bogart, Uber faces controversy over plan to track user’s locations even when app isn’t running, Global News (June 22, 2015)
- Pratap Chatterjee, Ride-Sharing Service Uber Plans to Track Users Should Not Be Allowed, Says Privacy Group, Global Research (June 22, 2015)
- Anthony Cuthbertson, Uber faces lawsuit over 'greedy and creepy' plans to track users not running app, International Business Times (June 22, 2015)
- Wendy Davis, FTC Should Prevent Uber From Collecting 'Unnecessary' Information, Watchdog Says, MediaPost (June 22, 2015)
- Uber’s Promises of Privacy Ring Hollow, Says Group, MONEY (June 22, 2015)
- Brendan Sasso, Feds Urged to Investigate Uber’s Plan to Track Users, National Journal (June 22, 2015)
- Mekahlo Medina, 24/7 Tracking in Uber App Update Threatens Users' Privacy: Federal Compliant, NBC Los Angeles (June 22, 2015)
- Matt Moreno, Privacy Group Files FTC Complaint Over Uber's New Policies, Newsy (June 22, 2015)
- Grant Gross, Privacy group complains about Uber data collection, PCWorld (June 22, 2015)
- Abubaker Zahoor, Privacy Group To Challenge Uber’s New Privacy Policy At The FTC , TechFrog (June 22, 2015)
- David McCabe, Uber hit with privacy complaint, The Hill (June 22, 2015)
- Mark Wilson, ,Lawsuit fights Uber's user location tracking plans, Beta News (Jun. 22, 2015)
- Natasha Singer and Mike Isaac, Uber Data Collection Changes Should Be Barred, Privacy Group Urges, New York Times (Jun. 22, 2015)
- Smith Dalton, Following an update to it’s privacy policy, Uber will now be able to track your location even if the app is closed, Tech News Today (Jun. 22, 2015)
- Daina Beth Solomon, Uber could track passengers after they leave car, privacy group claims, Los Angeles Times (Jun. 22, 2015)
- Nathan Mcalone, Uber will soon be able to track your location even if you exit the app and have GPS turned off, Business Insider (Jun. 22, 2015)
- Rachel Adams-Heard, Uber’s Customer Tracking Draws FTC Complaint From Privacy Group, Bloomberg Business (Jun. 22, 2015)
- Elizabeth Weise, Privacy group asks FTC to investigate Uber, USA Today (Jun. 22, 2015)
- Rupert Neate, Uber faces FTC complaint over plan to track customers’ locations and contacts, The Guardian (Jun. 22, 2015)
- Mic Wright, Uber faces legal challenge over plan to track you even when its app isn’t running, TNW News (Jun. 22, 2015)
Articles About Uber and Privacy
- Katherine Tassi, An Update On Privacy at Uber (May 28, 2015)
- Uber, Protecting Privacy: Our Commitment,(Jan. 30, 2015)
- Uber Privacy Policy, Uber.com (effective July 13, 2013)
- Privacy Statements, Uber.com (effective July 15, 2015)
- Company Overview of Uber Technologies, Inc., Bloomberg Business (June 12, 2015)
- John Patrick Pullen, Everything You Need to Know About Uber, Time (Nov. 4, 2014)
- Mary Beth Quirk, How Do Uber and Lyft Work and Why Should I Even Care?, Consumerist (Sept. 18, 2014)
- Mike Isaac, Uber Pledges to Improve Data Privacy Practices, NY Times (Jan. 30, 2015)
- Johana Bhuiyan & Charlie Warzel, “God View”: Uber Investigates Its Top New York Executive For Privacy Violations, Buzzfeed (Nov. 18, 2014)
- Peter Sims, Can We Trust Uber?, Medium (Sept. 26, 2014)
- Tracey Lien, Uber Security Breach May Have Affected Up to 50,000 Drivers, LA Times (Feb. 27, 2015)
- Tom Kise, Congress Votes Uber, Hamilton Place Strategies (Nov. 2014)
- Kai Ryssdal, Uber's Data Makes a Creepy Point about the Company, Marketplace (Nov. 18, 2014)
- Joseph Koebler, Uber's Text Message Spam Is Driving People Crazy, Motherboard (June 12, 2015)
- Tracey Kaplan, Lawsuit Claims Uber Pesters Consumers via Spam Texts to Work as Drivers, San Jose Mercury News (June 12, 2015)
- Natasha Singer, Sharing Data, But Not Happily, NY Times (June 4, 2015)
- John Ribeiro, Uber Revises Privacy Policy, Wants More Data From Users, NetworkWorld.com (May 28, 2015)
- Mariella Moon, Uber Will Let Drivers Track Your Location, But Only If You Agree (Update), Engadget.com (May 31, 2015)
- Sunainaa Chadha, If You Have An Android Phone, Uber’s New Privacy Policy Will Spook You, FirstPost.com (May 29, 2015)
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