The U.S. government's contracts with Internet companies for video, photo sharing and other Web 2.0 services may have ignored key privacy obligations of federal agencies, according the Electronic Privacy Information Center. Documents obtained through a Freedom of Information Act request by the group show that the General Services Administration moved ahead with the agreements even as guidance for President Obama's January open government and transparency directive was delayed.

Google, even after addressing privacy problems associated with the White House's use of embedded YouTube videos, is "still calling the shots on federal privacy policy," EPIC argued in an email. GSA's Google contract asserts that the "provider acknowledges that except as expressly set forth in this agreement Google uses persistent cookies in connection with the YouTube video player." It goes on to state: "To the extent any rules or guidelines exist prohibiting the use of persistent cookies in connection with provider content applies to Google, provider expressly waives those rules or guidelines as they may apply to Google."

In the GSA's contract with Yahoo, which owns photo sharing site Flickr, Yahoo acknowledged that the agency was obligated to follow various "laws and regulations," but there is nothing to indicate that Yahoo would be bound by those same laws and regulations, EPIC said. A review of the documents by EPIC's Lillie Coney, who pursued the FOIA request, also revealed a statement on federal policy banning Internet tracking cookies that mentions a waiver and adds that "policy may change." Further, it is unclear whether contracts signed by the GSA complied with the guidance prepared by the agency's general counsel on "GSA's ventures with social media tools," EPIC said.

The watchdog group is planning to pursue related documents with the GSA and also will urge Congress to conduct oversight of the GSA's contracting for Web 2.0 services. "Our primary concern is that the GSA has failed to protect the privacy rights of US citizens," EPIC Executive Director Marc Rotenberg said in an email. He added that he is worried the broader federal contracting system "simply broke down" and that the GSA "really had no idea how to manage these contracts."

Check back later for updates on this developing story...

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Update 1: "We at Google are happy to continue to work with the federal government to help make government more open, accessible, and transparent through our products while we ensure the privacy of visitors to federal websites that use our technology," a Google spokeswoman said. "The White House YouTube channel is just one example of how government and citizens communicate more effectively online, and we are proud of having worked closely with the White House to provide privacy protections for users viewing YouTube videos embedded on whitehouse.gov."

Update 2: "As the administration uses new media tools to open government up, we are committed to protecting users' privacy. That is why when we asked for public comment on a new cookie policy, we specifically identified privacy considerations as a main area of focus," said Kenneth Baer, communications director for the Office of Management and Budget.