The Federal Communications Commission (FCC) has issued a substantial fine of nearly $200 million against the four largest wireless carriers in the US – AT&T, Verizon, T-Mobile (including its subsidiary Sprint) – for illegally sharing customers’ location data.
This decision, which was first announced in February 2020 and finalized recently, comes after a long investigation into the unauthorized sharing of sensitive user information, highlighting serious concerns about user privacy.
Verizon, Sprint and AT&T Sold the Data to Aggregators
The investigation, initiated four years ago, was triggered by allegations that major wireless carriers had unlawfully shared customers’ geolocation data with “location aggregators” without obtaining consent from the customers. This data was then further disseminated to third-party entities for their commercial benefit. The FCC alleges that this practice led to user location data being accessed by entities such as bail-bond companies and bounty hunters, without the explicit permission of the users.
The four wireless carriers involved in the investigation are significant players in the US mobile market, collectively serving millions of subscribers. The investigation’s findings are particularly concerning due to the sensitive nature of location data, which can provide detailed insights into an individual’s movements and habits. With unauthorized access to this data, users could be at risk of being tracked, stalked, or targeted for fraudulent activities.
AT&T was fined over $57 million, and Verizon was fined almost $47 million. T-Mobile and Sprint, which merged since the investigation began, have been fined $92 million
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FCC Chair Jessica Rosenworcel emphasized the seriousness of the issue, stating that telecommunications providers have access to some of the most sensitive information about individuals.
Jessica Rosenworcel is an American attorney who currently serves as the Chairwoman of the Federal Communications Commission (FCC). She was first appointed as a Commissioner to the FCC by President Barack Obama in May 2012 and was confirmed by the Senate later that year. Rosenworcel has a background in telecommunications policy and has worked on issues related to broadband access, net neutrality, and spectrum policy.
She underscored the carriers’ failure to protect this information and emphasized the importance of holding them accountable for their obligations to protect customer data.
The Federal Communications Commission (FCC) is an independent agency of the United States government that regulates interstate and international communications by radio, television, wire, satellite, and cable.
The wireless division of Verizone operates a nationwide network that provides voice and data services to mobile phones, tablets, and other wireless devices
The FCC’s responsibilities include regulating the use of the radio spectrum, promoting competition, and ensuring that communication services are accessible to all Americans. The FCC also oversees the construction of communications infrastructure and enforces regulations to protect consumers and promote public safety.
FCC delivers a resounding blow to US telecom giants, imposing a staggering $200M fine for unauthorized sharing of users’ location data. The action comes after a lengthy investigation into the carriers’ practices, highlighting serious concerns about privacy violations.
The FCC announced this information on Twitter and confirmed the numbers.
Defying the FCC Decision
In response to the FCC’s findings, the four major wireless carriers expressed their intention to appeal the decision. They argued that the fines were unjust and contested the legal and factual basis of the FCC’s findings. Verizon criticized the FCC for penalizing them for supporting “life-saving location services,” while T-Mobile called the fine “excessive” and highlighted that the program in question had been discontinued over five years ago.
The fines imposed by the FCC underscore the importance of protecting user privacy and ensuring that telecommunications providers adhere to strict standards when handling sensitive information. The outcome of this case is likely to have broader implications for data privacy regulations and enforcement in the telecommunications industry.
