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Pentium III battle persists
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February 18, 1999: 1:55 p.m. ET
Privacy groups say Intel misled public regarding chip's security feature
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NEW YORK (CNNfn) - Privacy advocates continued to express concerns about security issues in Intel Corp.'s new Pentium III chip, claiming the company misled consumers when it said it would change the way the chip implemented serial numbers.
The new processor sparked controversy last month when the company disclosed it would include a processor serial number (PSN), which would verify individual users' identities when conducting transactions over the Internet.
The Santa Clara, Calif.-based company said the feature would help boost security of electronic-commerce transactions, but privacy groups objected.
Originally, Intel (INTC) said it will include a software feature that will enable users to turn off the ID feature. After a number of privacy groups stated their concerns, the company then said users will have to turn the serial number feature on to execute e-commerce transactions instead of remembering to turn it off.
At a sneak preview for the Pentium III Wednesday, Intel said many consumer PC makers are shipping PCs with a control utility that puts the ID feature in a default "off" position. For corporate users, however, Intel said the utility was not an issue.
That comment once again raised the ire of Junkbusters, a Green Brook, N.J.-based technology lobby group that has been leading a boycott of the Pentium III chip. Junkbusters contends the company has deceived the public.
"We're outraged at that," said Jason Catlett, Junkbusters president. "It turns out to be a piece of sleight of hand on Intel's part because they were never in control over whether the ID feature would be turned off. It's always been in the control of the OEMs [PC makers]."
But Howard High, an Intel spokesman, said that assessment was inaccurate, noting that all PC makers will have the control utility available.
"We've been working with computer makers to get the control utility installed directly onto their hard drives," High said. "The question is, will all computers be installed with the control utility by the Pentium III launch at the end of the month? If that's not the case, computer makers will include a CD with the control utility, and Intel will make the utility available."
High said that while the Pentium III's ID feature will be most applicable on business-level PCs, all computers shipped with the chip will have the utility available in the default off position.
Nonetheless, Catlett said Junkbusters, along with Privacy International and the Electronic Privacy Information Center, will continue their boycott. He also said they are organizing a letter-writing campaign to the Federal Trade Commission.
"We regard this as information that Intel behaved deceptively," Catlett said.
Intel will officially launch the Pentium III Feb. 26.
Intel shares were up 4-1/8 at 128-3/4 in midday trade. 
-- by staff writer John Frederick Moore
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