09 August 2002

Microsoft Agrees Twenty Years Of FTC Security Audits

Microsoft has agreed a deal with the FTC to allow independent security audits of its Passport system.

The deal, which will last for two decades, is in response to accusations that Microsoft falsely misrepresented the privacy and security of personal information collected from consumers through Passport.

There was no fine in the settlement, but if Microsoft were to fail to comply with the new order, it would be forfeit $11,000 per violation per day in fines.

FTC Commissioner, Timothy J. Muris, said the review of Passport procedures found no actual examples of security or privacy breaches but "we found there was potential for both."