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"Clear" Registered Travel Program Goes Dark

Company abruptly shuts off service for frequent flyers





By Martin H. Bosworth
ConsumerAffairs.com

June 23, 2009

Airport Security
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It was billed as the perfect antidote to long airport waits for busy flyers — simply pay $200 a year, submit some personal information, and you could be whisked to the front of the line for flights from many major airports. That was the promise of the "Clear" airport program, largest of the "Registered Traveler" priority-passenger programs.

But subscribers to the program were in for a shock yesterday, as the company abruptly ceased operations, its Web site replaced with a brief note saying it was closing down due to a dispute with its creditors.

"At the present time, because of its financial condition, Verified Identity Pass, Inc. cannot issue refunds," the Web site stated. The company's parent, later updated the site to add that it would take "appropriate steps" to delete the passenger data it had gathered.

The "Clear" program and its siblings were designed to circumvent higher security and longer lines imposed on airports in the wake of the September 11, 2001 terrorist attacks. The premise was that business travelers would submit extensive personal data — including biometric verification — to the Transportation Security Authority (TSA), which would vet the applicant and grant them permission to use "Clear," or other services.

Users of "Clear" would get a clear plastic ID card that could be used at any participating airport, or with competitors' terminals, in an effort to speed business travelers on their way while other passengers endured long lines, byzantine rules, and humiliating searches.

Many analysts blamed the program's shutdown on the economy, claiming that tight business budgets and high unemployment meant less air travel, and consequently less need for a fast-registration program.

Although "Clear" had the imprimatur of its founder and former CEO, media magnate Stephen Brill, and over $50 million in venture capital funding backing it, critics charged that programs like "Clear" did not offer any real security, as any potential terrorist or saboteur would find a way to forge their credentials and get past the system.

Privacy advocates also noted that the information gathered by Clear was not actually held by the TSA, but by the private companies backing the venture, such as Lockheed Martin.

"Now my personal information is within a database controlled by Lockheed Martin along with my biometrics," Greg of Centerville, Virginia told ConsumerAffairs.Com. "I don't know where it's going to end up or sold to in the future. The representatives told me they were just following instruction, but by who?"

The TSA temporarily shut down "Clear" in August of 2008 after a laptop was stolen from San Francisco International Airport containing personal data on 33,000 new applicants for the program.

Angry customers complained on various news sites that Clear had been charging them for renewals right up until the company's sudden shutdown, and demanded that Boston-based investor Spark Capital refund their payments.



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