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Electronic surveillance and collection of personal data are "pervasive" in British society and threaten to undermine democracy, peers [in the House of Lords] have warned. CCTV cameras and the DNA database were two examples of threats to privacy, the Lords constitution committee said. It called for compensation for people subject to illegal surveillance. Civil liberties campaigners have warned about the risks of a "surveillance society" in which the state acquires ever-greater powers to track people's movements and retain personal data. In its report, the Lords constitution committee said growth in surveillance by both the state and the private sector risked threatening people's right to privacy, which it said was "an essential pre-requisite to the exercise of individual freedom". People were often unaware of the scale of personal information held and exchanged by public bodies, it said. "There can be no justification for this gradual but incessant creep towards every detail about us being recorded and pored over by the state," committee chairman and Tory peer Lord Goodlad said. "The huge rise in surveillance and data collection by the state and other organisations risks undermining the long-standing tradition of privacy and individual freedom which are vital for democracy," Lord Goodlad added. Human rights campaigners Liberty welcomed the report.

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This is the year when automated face-recognition finally goes mainstream, and it's about time we considered its social and political implications. Researchers are developing sharply accurate scanners that monitor faces in 3D and software that analyses skin texture to turn tiny wrinkles, blemishes and spots into a numerical formula. The strongest face-recognition algorithms are now considered more accurate than most humans - and already the Home Office and the Association of Chief Police Officers have held discussions about the possibility of linking such systems with automatic car-numberplate recognition and public-transport databases. Join everything together via the internet, and voilŕ - the nation's population, down to the individual Times reader, can be conveniently and automatically monitored in real time. So let's understand this: governments and police are planning to implement increasingly accurate surveillance technologies that are unnoticeable, cheap, pervasive, ubiquitous, and searchable in real time. And private businesses, from bars to workplaces, will also operate such systems, whose data trail may well be sold on or leaked to third parties - let's say, insurance companies that have an interest in knowing about your unhealthy lifestyle, or your ex-spouse who wants evidence that you can afford higher maintenance payments.

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The Department of Homeland Security will proceed with the first phase of a controversial satellite-surveillance program, even though an independent review found the department hasn't yet ensured the program will comply with privacy laws. Congress provided partial funding for the program in a little-debated $634 billion spending measure that will fund the government until early March. For the past year, the Bush administration had been fighting Democratic lawmakers over the spy program, known as the National Applications Office. The program is designed to provide federal, state and local officials with extensive access to spy-satellite imagery. Since the department proposed the program a year ago, several Democratic lawmakers have said that turning the spy lens on America could violate Americans' privacy and civil liberties unless adequate safeguards were required. A new [but classified] 60-page Government Accountability Office report said the department "lacks assurance that NAO operations will comply with applicable laws and privacy and civil liberties standards." The report cites gaps in privacy safeguards. The department, it found, lacks controls to prevent improper use of domestic-intelligence data by other agencies and provided insufficient assurance that requests for classified information will be fully reviewed to ensure it can be legally provided. But the bill Congress approved, which President George W. Bush signed into law Tuesday, allows the department to launch a limited version.

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There is apparently no limit to the Bush administration’s desire to invade Americans’ privacy in the name of national security. According to members of Congress, Attorney General Michael Mukasey is preparing to give the F.B.I. broad new authority to investigate Americans — without any clear basis for suspicion that they are committing a crime. Opening the door to sweeping investigations of this kind would be an invitation to the government to spy on people based on their race, religion or political activities. Mr. Mukasey has not revealed the new guidelines. But according to senators whose staff have been given limited briefings, the rules may also authorize the F.B.I. to use an array of problematic investigative techniques. Among these are pretext interviews, in which agents do not honestly represent themselves while questioning a subject’s neighbors and work colleagues. The F.B.I. has a long history of abusing its authority to spy on domestic groups, including civil rights and anti-war activists, and there is a real danger that the new rules would revive those dark days. Clearly, the Bush administration cannot be trusted to get the balance between law enforcement and civil liberties right. It has repeatedly engaged in improper and illegal domestic spying — notably in the National Security Agency’s warrantless eavesdropping program. The F.B.I. and the White House no doubt want to push the changes through before a new president is elected. There is no reason to rush to adopt rules that have such important civil liberties implications.

Attorney General Michael Mukasey confirmed plans ... to loosen post-Watergate restrictions on the FBI's national security and criminal investigations. Mukasey said he expected criticism of the new rules because "they expressly authorize the FBI to engage in intelligence collection inside the United States." The Justice Department ... is expected to publicly release the final version within several more weeks. Even then, portions are expected to remain classified for national security reasons. Nonetheless, Mukasey provided enough detail Wednesday to alarm civil libertarians. Michael German, a former veteran FBI agent who is now policy counsel for the American Civil Liberties Union, said if Mukasey moves ahead with the new rules as he describes them, he'll be weakening restrictions originally put in place after the Watergate scandal to rein in the FBI's domestic Counter Intelligence Program, or COINTELPRO. "I'm concerned with the way the attorney general frames the problem," German said. "He talks about 'arbitrary or irrelevant differences' between criminal and national security investigations but these were corrections originally designed to prevent the type of overreach the FBI engaged in for years." German said recent events demonstrated that Mukasey needed to strengthen the FBI's guidelines, not "water them down. ... What the attorney general is doing is expanding the bureau's intelligence collection without addressing the mismanagement within the FBI. If you have an agency collecting more with less oversight, it's only going to get worse."

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Federal agents may take a traveler's laptop computer or other electronic device to an off-site location for an unspecified period of time without any suspicion of wrongdoing, as part of border search policies the Department of Homeland Security recently disclosed. Also, officials may share copies of the laptop's contents with other agencies and private entities for language translation, data decryption or other reasons, according to the policies, dated July 16 and issued by two DHS agencies, U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement. "The policies . . . are truly alarming," said Sen. Russell Feingold (D-Wis.), who is probing the government's border search practices. He said he intends to introduce legislation soon that would require reasonable suspicion for border searches, as well as prohibit profiling on race, religion or national origin. DHS officials said the newly disclosed policies ... apply to anyone entering the country, including U.S. citizens. Civil liberties and business travel groups have pressed the government to disclose its procedures as an increasing number of international travelers have reported that their laptops, cellphones and other digital devices had been taken -- for months, in at least one case -- and their contents examined. The policies cover "any device capable of storing information in digital or analog form," including hard drives, flash drives, cellphones, iPods, pagers, beepers, and video and audio tapes. They also cover "all papers and other written documentation," including books, pamphlets and "written materials commonly referred to as 'pocket trash' or 'pocket litter.' "

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In a development that consumer groups say raises privacy issues, a growing number of hospitals are mining patients' personal financial information to figure out how likely they are to pay their bills. Some hospitals are peering into patients' credit reports, which contain information on people's lines of credit, debts and payment histories. Other hospitals are contracting with outside services that predict a patient's income and whether he or she is likely to walk away from a medical bill. Hospitals often use these services when patients are uninsured or have big out-of-pocket costs despite having health insurance. Consumer advocates say the practice creates the potential for hospitals to misuse the information by denying or cutting back on patients' care if they can't pay. What's more, hospitals could scour a patient's financial records for credit lines and encourage the patient to tap them, despite high interest rates or other costs. "It has the potential to put people at risk financially," says Mark Rukavina, executive director of the Access Project, a research and advocacy group that focuses on medical debt. The Health Insurance Portability and Accountability Act, or Hipaa, a federal law that has patient-privacy provisions, doesn't bar hospitals from providing patient payment histories to consumer reporting agencies. It's unclear how much latitude hospitals have to legally check a patient's financial information. Under the Fair Credit Reporting Act, hospitals are allowed to obtain patients' credit reports if they get their permission, says Rebecca Kuehn, an assistant director in the Federal Trade Commission's division of privacy and identity protection.

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Microsoft is developing Big Brother-style software capable of remotely monitoring a worker’s productivity, physical wellbeing and competence. The Times has seen a patent application filed by the company for a computer system that links workers to their computers via wireless sensors that measure their metabolism. The system would allow managers to monitor employees’ performance by measuring their heart rate, body temperature, movement, facial expression and blood pressure. Unions said they fear that employees could be dismissed on the basis of a computer’s assessment of their physiological state. This is believed to be the first time a company has proposed developing such software for mainstream workplaces. Microsoft submitted a patent application in the US for a “unique monitoring system” that could link workers to their computers. Wireless sensors could read “heart rate, galvanic skin response, EMG, brain signals, respiration rate, body temperature, movement facial movements, facial expressions and blood pressure”, the application states. The system could also “automatically detect frustration or stress in the user”. Physical changes to an employee would be matched to an individual psychological profile based on a worker’s weight, age and health. If the system picked up an increase in heart rate or facial expressions suggestive of stress or frustration, it would tell management. Civil liberties groups and privacy lawyers strongly criticised the potential of the system for “taking the idea of monitoring people at work to a new level”.

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When previous Republican administrations were accused of illegality in the FBI and CIA spying abuses of the 1970s or the Iran-Contra affair of the 1980s, Democrats in Congress launched investigations or pushed for legislative reforms. But last week, faced with admissions by several telecommunication companies that they assisted the Bush administration in warrantless spying on Americans, leaders of the Senate intelligence committee took a much different tack -- proposing legislation that would grant those companies retroactive immunity from prosecution or lawsuits. The proposal marks the second time in recent years that Congress has moved toward providing legal immunity for past actions that may have been illegal. The Military Commissions Act, passed by a GOP-led Congress in September 2006, provided retroactive immunity for CIA interrogators who could have been accused of war crimes for mistreating detainees. Legal experts say the granting of such retroactive immunity by Congress is unusual, particularly in a case involving private companies. "It's particularly unusual in the case of the telecoms because you don't really know what you're immunizing," said Louis Fisher, a specialist in constitutional law with the Law Library of the Library of Congress. Civil liberties groups and many academics argue that Congress is allowing the government to cover up possible wrongdoing and is inappropriately interfering in disputes that the courts should decide. The American Civil Liberties Union [said] in a news release Friday that "the administration is trying to cover its tracks."

Broad new surveillance powers approved by Congress this month could allow the Bush administration to conduct spy operations that go well beyond wiretapping to include — without court approval — certain types of physical searches on American soil and the collection of Americans’ business records. “This may give the administration even more authority than people thought,” said David Kris, a former senior Justice Department lawyer in the Bush and Clinton administrations. Several legal experts said that by redefining the meaning of “electronic surveillance,” the new law narrows the types of communications covered in the Foreign Intelligence Surveillance Act, known as FISA, by indirectly giving the government the power to use intelligence collection methods far beyond wiretapping that previously required court approval if conducted inside the United States. These new powers include the collection of business records, physical searches and so-called “trap and trace” operations, analyzing specific calling patterns. For instance, the legislation would allow the government, under certain circumstances, to demand the business records of an American in Chicago without a warrant if it asserts that the search concerns its surveillance of a person who is in Paris, experts said. Some civil rights advocates said they suspected that the administration made the language of the bill intentionally vague to allow it even broader discretion over wiretapping decisions. The end result ... is that the legislation may grant the government the right to collect a range of information on American citizens inside the United States without warrants, as long as the administration asserts that the spying concerns the monitoring of a person believed to be overseas.

The Defense Intelligence Agency is preparing to pay private contractors up to $1 billion to conduct core intelligence tasks of analysis and collection over the next five years, an amount that would set a record in the outsourcing of such functions by the Pentagon's top spying agency. The proposed contracts ... reflect a continuing expansion of the Defense Department's intelligence-related work and fit a well-established pattern of Bush administration transfers of government work to private contractors. Since 2000, the value of federal contracts signed by all agencies each year has more than doubled to reach $412 billion, with the largest growth at the Defense Department. Outsourcing particularly accelerated among intelligence agencies after the [Sept. 11] 2001 terrorist attacks. The DIA's action comes a few months after CIA Director Michael V. Hayden, acting under pressure from Congress, announced a program to cut the agency's hiring of outside contractors by at least 10 percent. The DIA is the country's major manager and producer of foreign military intelligence, with more than 11,000 military and civilian employees worldwide and a budget of nearly $1 billion. It has its own analysts from the various services as well as collectors of human intelligence in the Defense HUMINT Service. DIA also manages the Defense attaches stationed in embassies all over the world. Unlike the CIA, the DIA outsources the major analytical products known as all-source intelligence reports, a senior intelligence official said.

The Bush administration has approved a plan to expand domestic access to some of the most powerful tools of 21st-century spycraft, giving law enforcement officials and others the ability to view data obtained from satellite and aircraft sensors that can see through cloud cover and even penetrate buildings and underground bunkers. A program approved by the Office of the Director of National Intelligence and the Department of Homeland Security will allow broader domestic use of secret overhead imagery beginning as early as this fall, with the expectation that state and local law enforcement officials will eventually be able to tap into technology once largely restricted to foreign surveillance. But the program ... quickly provoked opposition from civil liberties advocates, who said the government is crossing a well-established line against the use of military assets in domestic law enforcement. The administration's decision would provide domestic authorities with unprecedented access to high-resolution, real-time satellite photos. They could also have access to much more. Civil liberties groups quickly condemned the move, which Kate Martin, director of the Center for National Security Studies, ... likened to "Big Brother in the sky. They want to turn these enormous spy capabilities ... onto Americans. They are laying the bricks one at a time for a police state." Steven Aftergood, director of the Project on Government Secrecy for the Federation of American Scientists, said that ... oversight for the program was woefully inadequate. Enhanced access "shouldn't be adopted at all costs because it comes with risk to privacy and to the integrity of our political institutions," he said.

The Department of Homeland Security is funneling millions of dollars to local governments nationwide for purchasing high-tech video camera networks, accelerating the rise of a "surveillance society" in which the sense of freedom that stems from being anonymous in public will be lost, privacy rights advocates warn. The department ... has doled out millions on surveillance cameras, transforming city streets and parks into places under constant observation. A Globe [investigation] shows that a large number of new surveillance systems, costing at least tens and probably hundreds of millions of dollars, are being simultaneously installed around the country as part of homeland security grants. Federal money is helping New York, Baltimore, and Chicago build massive surveillance systems that may also link thousands of privately owned security cameras. Boston has installed about 500 cameras in the MBTA system, funded in part with homeland security funds. Marc Rotenberg, director of the Electronic Privacy Information Center, said [the] Homeland Security Department is the primary driver in spreading surveillance cameras, making their adoption more attractive by offering federal money to city and state leaders. The proliferation of cameras could mean that Americans will feel less free because legal public behavior -- attending a political rally, entering a doctor's office, or even joking with friends in a park -- will leave a permanent record, retrievable by authorities at any time.

It was appalling to watch over the last few days as Congress — now led by Democrats — caved in to yet another unnecessary and dangerous expansion of President Bush’s powers, this time to spy on Americans in violation of basic constitutional rights. Many of the 16 Democrats in the Senate and 41 in the House who voted for the bill said that they had acted in the name of national security, but the only security at play was their job security. What [do] the Democrats ... plan to do with their majority in Congress if they are too scared of Republican campaign ads to use it to protect the Constitution and restrain an out-of-control president[?] The White House and its allies on Capitol Hill railroaded Congress into voting a vast expansion of the president’s powers. They gave the director of national intelligence and the attorney general authority to intercept — without warrant, court supervision or accountability — any telephone call or e-mail message that moves in, out of or through the United States as long as there is a “reasonable belief” that one party is not in the United States. While serving little purpose, the new law has real dangers. It would allow the government to intercept, without a warrant, every communication into or out of any country, including the United States. The Democratic majority has made strides on other issues like children’s health insurance against White House opposition. As important as these measures are, they do not excuse the Democrats from remedying the damage Mr. Bush has done to civil liberties and the Bill of Rights. That is their most important duty.

A federal intelligence court judge earlier this year secretly declared a key element of the Bush administration's wiretapping efforts illegal, according to a lawmaker and government sources, providing a previously unstated rationale for fevered efforts by congressional lawmakers this week to expand the president's spying powers. House Minority Leader John A. Boehner (R-Ohio) disclosed elements of the court's decision in remarks ... to Fox News as he was promoting the administration-backed wiretapping legislation. The judge, whose name could not be learned, concluded early this year that the government had overstepped its authority in attempting to broadly surveil communications between two locations overseas that are passed through routing stations in the United States. The decision was both a political and practical blow to the administration, which had long held that all of the National Security Agency's enhanced surveillance efforts since 2001 were legal. The administration for years had declined to subject those efforts to the jurisdiction of the Foreign Intelligence Surveillance Court, and after it finally did so in January the court ruled that the administration's legal judgment was at least partly wrong. The practical effect has been to block the NSA's efforts to collect information from a large volume of foreign calls and e-mails that passes through U.S. communications nodes clustered around New York and California. Both Democrats and Republicans have signaled they are eager to fix that problem through amendments to the Foreign Intelligence Surveillance Act (FISA). An unstated facet of the program is that anyone the foreigner is calling inside the United States, as long as that person is not the primary target, would also be wiretapped.

The Bush administration is pressing Congress this week for the authority to intercept, without a court order, any international phone call or e-mail between a surveillance target outside the United States and any person in the United States. It would also give the attorney general sole authority to order the interception of communications for up to one year as long as he certifies that the surveillance is directed at a person outside the United States. Civil liberties and privacy groups have denounced the administration's proposal, which they say would effectively allow the National Security Agency to revive a warrantless surveillance program conducted in secret from 2001 until late 2005. They say it would also give the government authority to force carriers to turn over any international communications into and out of the United States without a court order. An unstated facet of the program is that anyone the foreigner is calling inside the United States, as long as that person is not the primary target, would also be wiretapped. Caroline Fredrickson, director of the ACLU's Washington legislative office [said], "What the administration is really going after is the Americans. Even if the primary target is overseas, they want to be able to wiretap Americans without a warrant." The proposal would also allow the NSA to ... have access to the entire stream of communications without the phone company sorting, said Kate Martin, director of the Center for National Security Studies. "It's a 'trust us' system," she said. "Give us access and trust us."

The Federal Bureau of Investigation is developing a computer-profiling system that would enable investigators to target possible terror suspects. The System to Assess Risk, or STAR, assigns risk scores to possible suspects based on a variety of information, similar to the way a credit bureau assigns a rating based on a consumer's spending behavior and debt. The program focuses on foreign suspects but also includes data about some U.S. residents. Some lawmakers said ... that the report raises new questions about the government's power to use personal information and intelligence without accountability. "The Bush administration has expanded the use of this technology, often in secret, to collect and sift through Americans' most sensitive personal information," said Sen. Patrick J. Leahy (D-Vt.), chairman of the Senate Judiciary Committee. The use of data mining in the war on terror has sparked criticism. An airplane-passenger screening program called CAPPS II was revamped and renamed because of civil liberty concerns. An effort to collect Americans' personal and financial data called Total Information Awareness was killed. Law enforcement and national security officials have continued working on other programs to use computers to sift through information for signs of threats. The Department of Homeland Security, for example, flags travelers entering and leaving the United States who may be potential suspects through a risk-assessment program called the Automated Targeting System.

A federal appeals court removed a serious legal challenge to the Bush administration's warrantless wiretapping program yesterday, overruling the only judge who held that a controversial surveillance effort by the National Security Agency was unconstitutional. Two members of a three-judge panel ... ordered the dismissal of a major lawsuit that challenged the wiretapping, which President Bush authorized secretly to eavesdrop on communications ... shortly after the Sept. 11, 2001, attacks. The court did not rule on the spying program's legality. Instead, it declared that the American Civil Liberties Union and the others who brought the case -- including academics, lawyers and journalists -- did not have the standing to sue because they could not demonstrate that they had been direct targets of the clandestine surveillance. The decision vacates a ruling in the case made last August by a U.S. District Court judge in Detroit, who ruled that the administration's program to monitor private communications violated the Bill of Rights and a 1970s federal law. Steven R. Shapiro, the ACLU's legal director, said: "As a result of today's decision, the Bush administration has been left free to violate the Foreign Intelligence Surveillance Act, which Congress adopted almost 30 years ago to prevent the executive branch from engaging in precisely this kind of unchecked surveillance."

Pediatrician Rupin Thakkar's first inkling that the pharmaceutical industry was peering over his shoulder ... came in a letter from a drug representative about the generic drops Thakkar prescribes to treat infectious pinkeye. In the letter, the salesperson wrote that Thakkar was causing his patients to miss more days of school than they would if he put them on Vigamox, a more expensive brand-name medicine made by Alcon Laboratories. "My initial thought was 'How does she know what I'm prescribing?' " Thakkar said. "It feels intrusive ... I just feel strongly that medical encounters need to be private." He is not alone. Many doctors object to drugmakers' common practice of contracting with data-mining companies to track exactly which medicines physicians prescribe and in what quantities -- information marketers and salespeople use to fine-tune their efforts. The concerns are not merely about privacy. Proponents say using such detailed data for drug marketing serves mainly to influence physicians to prescribe more expensive medicines, not necessarily to provide the best treatment. "We don't like the practice, and we want it to stop," said Jean Silver-Isenstadt, executive director of the National Physicians Alliance. (Thakkar is on the group's board of directors.) "We think it's a contaminant to the doctor-patient relationship, and it's driving up costs." The American Medical Association makes millions of dollars each year by helping data-mining companies link prescribing data to individual physicians. It does so by licensing access to the AMA Physician Masterfile, a database containing names, birth dates, educational background, specialties and addresses for more than 800,000 doctors.

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Congressional Republicans and Democrats demanded answers from the Bush administration Thursday about a government spy agency secretly collecting records of ordinary Americans' phone calls to build a database of every call made within the country. This database affects as many as 200 million Americans. AT&T Corp., Verizon Communications Inc., and BellSouth Corp. telephone companies began turning over records of tens of millions of their customers' phone calls to the NSA program shortly after the Sept. 11, 2001, terrorist attacks. 'We have reached a privacy crisis,' said Rep. Edward J. Markey, D-MA, the ranking Democrat on the House Telecommunications and Internet Subcommittee. 'The N.S.A. stands for Now Spying on Americans.' Republican Sen. Lindsey Graham, R-S.C., told Fox News Channel: "The idea of collecting millions or thousands of phone numbers, how does that fit into following the enemy?" The Justice Department has abruptly ended an inquiry into the warrantless eavesdropping program because the NSA refused to grant its lawyers the necessary security clearance. The Justice Department's Office of Professional Responsibility [said] they were closing their inquiry because without clearance their lawyers cannot examine Justice lawyers' role in the program.

Note: Who gave the NSA power to stop the Justice Department from performing an inquiry?

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