iPhone location tracking targeted in class action suit

A new class action suit accuses Apple (NASDAQ:AAPL) of invasion of privacy and computer fraud as the furor over alleged iOS user location tracking continues to mount. The suit, filed Apr. 22 on behalf of iOS users Vikram Ajjampur and William Devito in federal court in Tampa, Fla., contends that Apple is secretly recording the movements of iPhone and iPad users and seeks a judge's order barring the practice. "We take issue specifically with the notion that Apple is now basically tracking people everywhere they go," Aaron Mayer, an attorney for the plaintiffs, told Bloomberg. "If you are a federal marshal, you have to have a warrant to do this kind of thing, and Apple is doing it without one."

Ajjampur and Devito are also requesting refunds for their iOS product purchases, contending they would have steered clear of Apple devices had they known about the potential for location data tracking. The lawsuit seeks unspecified punitive damages for alleged negligent misrepresentation. Anywhere from one-third to one-half of the U.S.'s 60 million iPhone users could be part of the class, Mayer added.

Lawmakers at home and abroad are also intensifying pressure on Apple: Illinois Attorney General Lisa Madigan wrote to the company and rival Google (NASDAQ:GOOG) asking executives to discuss reports their products collect user location data. Madigan wants the firms to specify what information they store, why they collect the data and for how long they keep it. French, German, Italian and South Korean regulators also are investigating.

Last week, British researchers Alisdair Allan and Pete Warden stated that iPhone and iPod devices have recorded location and time-stamp data since the mid-2010 release of the iOS 4 software update, effectively creating a comprehensive log of all user movement and activities during that time. Sen. Al Franken (D-Minn.) and Rep. Jay Inslee (D-Wash.) are calling on Apple to officially respond to public outcry over the location tracking reports. "I'm deeply disturbed by this report," Inslee said in a statement. "I have been concerned that current law fails to ensure consumers are protected from privacy violations. Consumers are often left to learn of these breaches of privacy from hackers and security experts because companies fail to disclose what data they are collecting and for what purpose."

MacRumors reports that a reader contacted Apple CEO Steve Jobs asking for clarification on the location tracking reports: "Could you please explain the necessity of the passive location-tracking tool embedded in my iPhone?" the customer wrote in email. "It's kind of unnerving knowing that my exact location is being recorded at all times. Maybe you could shed some light on this for me before I switch to a Droid. They don't track me." Jobs' typically terse response: "Oh yes they do. We don't track anyone. The info circulating around is false."

For more:
- read this Bloomberg article

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