FCC Imposes $200 Million Fine on Major US Mobile Carriers for Unauthorized Sale of Customer Location Data

In a significant move to uphold consumer privacy rights, the Federal Communications Commission (FCC) has levied a hefty collective fine of $200 million on America’s largest mobile carriers for unlawfully selling access to their subscribers’ location information. AT&T and Verizon, two of the country’s telecom giants, have been slapped with fines of $57 million and $47 million respectively. Meanwhile, Sprint and T-Mobile, which merged two years ago, are jointly facing a penalty totaling $92 million.

The FCC’s investigation into the unauthorized disclosure and sale of real-time location data by these carriers was initiated after revelations surfaced in 2018. This illicit practice involved selling sensitive location information to data aggregators, ultimately placing it in the hands of various entities, including bail-bond companies and bounty hunters. FCC Commissioner Jessica Rosenworcel aptly characterized the carriers’ actions as a grave violation, highlighting the risk posed to consumer privacy.

Also Read: Louis Dreyfus Company Emerges Victorious in Namoi Cotton Takeover Bid

The unraveling of this scheme began with public reports indicating the misuse of location data by a sheriff in Missouri, facilitated by a company named Securus, which obtains such information from wireless carriers. Securus, primarily providing communication services to correctional facilities, was able to access and exploit this data, raising serious concerns about its misuse.

Despite assurances to the FCC that they would cease such practices, the carriers continued their programs for an additional year, lacking adequate safeguards to ensure user consent and protection. This failure to implement necessary precautions not only violated consumer trust but also posed significant risks to individuals’ privacy and safety.

Responding to the fines, the implicated companies have indicated their intent to challenge the penalties. T-Mobile, facing the largest fine of $80 million, has deemed the amount excessive, while Sprint, fined $12 million, echoed similar sentiments. AT&T, disputing the decision, has criticized its purported lack of legal and factual basis, emphasizing the importance of supporting essential location-based services.

The FCC’s decisive action underscores the critical need for robust measures to safeguard consumer privacy and ensure accountability within the telecommunications industry. It sends a clear message to carriers and other entities entrusted with sensitive data that unauthorized exploitation will not be tolerated, reinforcing the imperative of upholding privacy rights in an increasingly interconnected world.

Also Check: Belkin AU