Not Allowed to Sue the Real Culprits; Torch Hiding? ...and Who Is Acxiom?

By Tim Kern

It didn't take long. We broke the story last Wednesday, about how jetBlue, in cooperating with the DoD and its contractor, Torch Concepts/Torch Technologies, exposed some of its customer data to unreliable, unscrupulous, or really stupid (you pick) people, and how pieces of those data, along with cross-referencing work, apparently from data purveyor Acxiom, ended up in a published presentation by Torch's CEO. JetBlue's CEO replied directly to us, apologized, and explained his company's role, in direct, clear terms.

Now, the DoD, which started it, and Homeland Security, where some data were included as part of Torch's pat-itself-on-the-back-ain't-we-smart presentation, are off the hook; and jetBlue, which 'only wanted to help,' is on it.

We tried to reach Torch, whose president told us last week that, well, basically, he denied that there was any such report, said that he hadn't done any work for Homeland Security, etc. -- but their phones weren't being answered Tuesday afternoon. Their explanation of how 'Torch Concepts' and 'Torch Technologies' are related (a company press release), has also been pulled from their website. However, their home page still proclaims, "The information you need, always at your desktop!"

Acxiom, for its part, says on its 'privacy' web page, "Acxiom has always taken a proactive approach toward ensuring consumer privacy. Since the founding of our executive level Corporate Privacy Council in 1990, Acxiom continuously looks for ways to protect the information we process and maintain about consumers and to promote policies within the industry that offer individuals the protection they are entitled." [See -- you just weren't entitled to that privacy!]

We weren't able to reach Acxiom by telephone, but a quick look at its Board of Directors brings us the photos and bios of new Presidential candidate (and former NATO Supreme Commander) General Wesley Clark; former Clinton Chief of Staff Thomas 'Mack' McLarty, and others, notably representative of the direct-mail industry -- plus the former Postmaster General of the United States. To top that off, they also have the former CEO (and current member of the Board) of Trans Union LLC, the credit bureau. Well, they're smart, and probably do have access to a lot of data...

JetBlue is, we believe, genuinely contrite; the plaintiffs (five actual passengers, plus a group) are seeking only compensatory (not punitive) damages from the airline.

Plaintiffs are also asking the FCC to investigate whether JetBlue should be in trouble over 'deceptive trade practices,' because its privacy policy didn't match its actions.

What's going to happen to Acxiom and Torch is, so far, anybody's guess. The departments of Defense and Homeland Security aren't covered by the laws we live under, and are exempt from such lawsuits, no matter whether they were deceitful in getting the information, how they mis-handled it, or how they disclosed it, absent malice. The former DARPA honchos at Torch and the policital heavy-hitters at Acxiom will probably claim some immunity, as well.

The National Defense Industrial Association, on whose website the Torch paper was published (and removed, after our inquiries apparently got people nervous), has not, as far as we have been able to determine, been sued.

FMI: www.dod.gov; www.torchconcepts.com; www.acxiom.com