Transcripts

AT&T's Privacy Policy Is Leaving Customers Exposed To The Government

SUSIE GHARIB: Consumer groups attacked AT&T`s new privacy policy today, even though it doesn`t go into effect until tomorrow. Privacy advocates are concerned that the telecom company could hand over account information of its Internet and video customers to the government. AT&T`s policy overhaul follows recent reports that the company gave the National Security Agency access to its voice and data networks without a warrant. AT&T is now being sued over that matter. Stephanie Dhue reports.

STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: The changes to AT&T`s privacy policy give the company ownership over customer account information. Legal experts say the policy will limit AT&T`s liability in any future lawsuits over its use of customer data and it opens the door to new uses of that information. HANK LEVINE, ATTORNEY, LEVINE, BLASZAK, BLOCK & BOOTHBY: AT&T essentially is claiming or preparing itself to claim broader rights to do, sell, otherwise treat that data, as if it were, as it is, it now claims, AT&T`s, not the customers.

DHUE: AT&T`s new policy states, quote, while your account information may be personal to you, these records constitute business records that are owned by AT&T. As such, AT&T may disclose such records to protect its legitimate business interests, safeguard others or respond to legal process. AT&T`s old policy was not as explicit, saying customer records may be shared to respond to legal requests. AT&T says customers must agree to the new guidelines before they can get service. Privacy advocates say the new policy goes too far.

NANCY LIBIN, COUNSEL, CENTER FOR DEMOCRACY AND TECHNOLOGY: It represents a significant shift in the kinds of privacy protections that consumers are going to have when they do business with AT&T.

DHUE: AT&T is also making clear to its customers that it will track their video-watching habits to quote personalize their viewing experience. At a Senate Judiciary Committee hearing this afternoon on its merger with Bellsouth, AT&T CEO Ed Whitacre defended the plan.

ED WHITACRE, CHAIRMAN & CEO, AT&T: The spirit of our policies, privacy policies and practices have not changed. We wanted to make our policies easier to read and easier to understand for our customers and to reflect the changes to our company and our new products.

DHUE: But lawmakers are clearly concerned about the changes.

PATRICK LEAHY (D) VERMONT: Beginning to wonder if anybody deals -- American deals with your company, whether they have any privacy at all left.

DHUE: Sprint and Verizon say they have no plans to adopt similar policies. But analysts say if AT&T can make the changes without a big public outcry, its competitors will follow suit. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.