Cell phone directory rings alarm bells

Intelius seeks to cash in with IPO
Intelius officials would not comment, citing the quiet period leading up to the IPO. In its filing, however, the company noted that it was able to get around laws that bar telephone companies from compiling cell phone directories without users’ consent because the laws did not mention third parties — like Intelius.

It acknowledges that “changes in the laws and regulations governing access to public information and the collection or sale of publicly-available information could make it more difficult for us to conduct business.”

Such changes could be in the works. Rob McKenna, the attorney general of Washington, whose laws govern Intelius’ operations, is seeking legislation to ban third-party directories, too. Companies would be subject to $50,000 fines per violation. The state Legislature convened hearings this week on a similar bill that would require companies to get users’ consent before publishing their mobile numbers, consent that they could revoke at any time.

But until that day comes, Intelius is pushing ahead aggressively with its directory.

In August, before its IPO filing required him to remain silent, Ed Petersen, the company’s executive vice president, said it was surprisingly easy for Intelius to compile its directory. The company considers a consumer to have opted in to the service if he or she has ever given the number to a government agency or a business.

"Geez, [there are] tons of ways — everything from going out to a Web site and buying a ring tone for your phone to putting your phone number down at anything [like] ordering a pizza,” Petersen told NBC affiliate KING of Seattle. “There are literally dozens and dozens of ways that a user or a consumer could opt in to a database.”

Cell phone users said that seemed to be cheating.

“If we want to be reached, we’ll give the number to people,” said Rachel Tripp of Bakersfield, Calif.

Petersen acknowledged that Intelius was counting on cell phone users’ not knowing they were exposing their numbers to his database whenever they gave them out to other businesses.

“When they’re ordering pizza, they’re not thinking about opting into a database,” he said.

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