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This is appalling.
Daily Brickbats > Enter Your Password - Reason Magazine
City officials in Bozeman, Montana, seemed to think that city employees should have nothing to hide. On employment applications, they demanded that prospective employees list their user names and passwords to "personal or business websites, web pages or memberships on any Internet-based chat rooms, social clubs or forums, to include, but not limited to: Facebook, Google, Yahoo, YouTube.com, MySpace, etc." After local media reported the demands, the city backed down.
Daily Brickbats > Enter Your Password - Reason Magazine