LA Council Insists on Added Security Breach Penalty as it OKs Move to Google's 'Cloud'

LA Council Insists on Added Security Breach Penalty as it OKs Move to Google's
'Cloud'

Project Demands Close Monitoring to Guarantee Citizen's Privacy Consumer
Watchdog Says

LOS ANGELES, Oct. 27 /PRNewswire-USNewswire/ -- The Los Angeles City Council
voted today to move the city's 30,000 email users to a system provided by
Google, but only after a provision that the city be compensated if there is
security breach in the data held on Google's servers.

Consumer Watchdog had said that the security provisions for the Google "cloud
computing" system for email and other applications remained untested and
opposed the $7.25 million contract. However, the nonpartisan consumer group
had argued that if the contact were approved, it should contain a provision
requiring "liquidated damages" or a payment in the event of a security breach.
Council voted to add the penalty provision 9-3.

"Los Angeles residents cannot be sure the city's confidential or sensitive
data will be secure," said John M. Simpson, consumer advocate with Consumer
Watchdog, "but at least they know there will be a penalty if security is
compromised. It's essential that this project be closely watched to ensure
that Google keeps its promises. Google's latest mantra, 'Trust us, security
matters' is not a real guarantee of anything."

Key to the plan for LA's system is Google's "Government Cloud," an
Internet-based system that is intended to serve Federal, State and Local
governments. While the "Government Cloud" has been announced, it has not been
completed. Google has said it plans to seek Federal Information Security
Management Act (FISMA) certification for it, but it is unclear if, or when,
such certification might happen.

"The right way to have done this, is to have insisted that Google demonstrate
the Government Cloud and its security and privacy measures before committing
to use it," said Simpson. "Would any of the Council members buy a car without
test driving it? They've just voted to adopt a system that hasn't even been
built."

The $7.25 million contract is actually with Computer Sciences Corp., which
will manage the switchover to Google's system. The Terms of Service agreement
with Google is merely an appendix to the main contract, which may make it more
difficult to hold Google responsible for any shortcomings in the system,
Consumer Watchdog said.

Consumer Watchdog, formerly the Foundation for Taxpayer and Consumer Rights is
a nonprofit, nonpartisan consumer advocacy organization with offices in
Washington, DC and Santa Monica, CA. Our website is www.ConsumerWatchdog.org.

SOURCE Consumer Watchdog

John M. Simpson of Consumer Watchdog, +1-310-392-0522 ext. 317, cell:
+1-310-292-1902