Wireless Carriers Face $200M FCC Fine As Data Privacy Waters Roil

Wireless Carriers Face $200M FCC Fine As Data Privacy Waters Roil

April 30, 2024 at 12:56PM

The FCC fined top US wireless carriers a total of $200 million for sharing customers’ location information without consent. The investigation, initiated after a sheriff used a location-finding service to access customer data, revealed that the carriers had sold data to two firms. The carriers argue the fines are based on outdated programs and plan to appeal.

The Federal Communications Commission (FCC) has imposed fines totaling $200 million on major US wireless carriers for unauthorized sharing of customer location information. The fines were based on an investigation that revealed the carriers had programs in place selling customer-location data to data-aggregation firms, who then resold access to the data to other entities without proper customer consent.

The carriers, including Sprint, T-Mobile USA, AT&T, and Verizon, are contesting the fines, claiming the actions were based on outdated programs that no longer exist and that they have since taken steps to ensure customer data security and privacy. The carriers argue that the data sharing was intended to enable location-based safety services such as roadside assistance and medical alerts.

FCC Chairwoman Jessica Rosenworcel emphasized the carriers’ failure to protect sensitive customer information and indicated that the commission plans to continue resolving older privacy cases regarding customer data.

The carriers confirmed they would appeal the fines, citing that the FCC’s order is based on outdated scenarios and unfairly penalizes them for supporting life-saving location services. The CTIA, a telecommunications industry trade association, also criticized the fines and called for examination by Congress of the FCC’s enforcement process.

The fines reflect the FCC’s intensive scrutiny of how communications providers handle private customer data, and they demonstrate the commission’s stringent approach to holding carriers accountable for unauthorized data sharing.

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