The Ninth Circuit, a federal court, recently upheld the practice. Part of the problem is that when Fourth Amendment issues end up in court, the person arguing for upholding the Constitution is always some criminal freak. If a normal citizen is subjected to an unconstitutional search, it won't end up in court because they won't be charged with anything. In the Ninth Circuit case, the defendant was a child porn collecting ball face. Ideally, the court should decide issues according to the law, regardless of whether the people in the case are douches or not, but most people doubt that's how it works in practice. "Bad facts make bad law," goes the saying. ("Balls facts make balls law?")
Now, with the FISA/telcom-immunity bill, the Senate is on the verge of taking away one of the few ways us (relatively) normal people might have of protecting our Fourth Amendment rights - the ability to sue the phone companies who violated them. This means that next time the phone companies let the government spy on their users, the person in charge of vindicating rights that belong to all of us will probably be some terrorist who got caught planning to blow up a bunch of stuff up. That is balls.
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