A proposed new FBI program would skirt federal laws by paying private companies to hold millions of phone and Internet records which the bureau is barred from keeping itself, experts say. The $5 million project would apparently pay private firms to store at least two years' worth of telephone and Internet activity by millions of Americans, few of whom would ever be considered a suspect in any terrorism, intelligence or criminal matter. The FBI is barred by law from collecting and storing such data if it has no connection to a specific investigation or intelligence matter. In recent years the bureau has tried to encourage telecommunications firms to voluntarily store such information, but corporations have balked at the cost of keeping records they don't need.The government isn't allowed to warehouse the information, and the companies don't want to, so this creates a business incentive for the companies to warehouse it, so the government can access it later," said Mike German, a policy expert on national security and privacy issues for the American Civil Liberties Union (ACLU)."It's a public-private partnership that puts civil liberties to the test." In March, an FBI official identified the companies as Verizon, MCI and AT&T.Even the bureau's own top lawyer said she found the [FBI's] behavior "disturbing," noting that when requesting access to phone company records, it repeatedly referenced "emergency" situations that did not exist, falsely claimed grand juries had subpoenaed information and failed to keep records on much of its own activity.

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