Several major cellphone carriers in the US, including T-Mobile, AT&T, Sprint, and Verizon, have collectively been fined $200 million by the Federal Communications Commission (FCC) for illegally sharing customer location data without consent and failing to protect it from unauthorized disclosures.
The FCC stated in a press release on April 29 that these carriers violated the Communications Act by selling customers’ location data without permission, even after being notified of the violations.
The Communications Act mandates customer privacy, prohibiting carriers from disclosing customer information without consent or legal requirements. This includes sharing customer information with third parties.
According to the FCC, AT&T has been fined over $57 million, Verizon nearly $47 million, and Sprint and T-Mobile (now merged) facing fines of over $12 million and $80 million, respectively.
FCC Chairwoman Jessica Rosenworcel criticized these carriers for failing to protect customers’ data, emphasizing the sensitivity of location information and the carriers’ duty to safeguard it.
The FCC investigations found that the carriers sold access to customer location information to aggregators who then resold it to third-party service providers without obtaining valid customer consent. Despite knowing their safeguards were ineffective, the carriers continued to sell access without adequate protection.
The investigation was initiated following allegations of subscriber location data being misused in a resale market for tracking individuals. Loyaan A. Egal, chief of the FCC Enforcement Bureau, stressed the importance of protecting personal data to ensure online safety.
AT&T and Verizon have refuted the allegations, signaling intentions to appeal the FCC’s actions. They claim the FCC is unfairly holding them responsible for violations by third parties and ignoring their efforts to address the issues.
CTIA, a trade association for the wireless communications industry, also criticized the FCC’s actions, calling for a review of the enforcement process. The association claims the FCC ignored requests for guidance on running location-based services and used an unlawful methodology to calculate fines.
Overall, the FCC’s actions highlight the importance of safeguarding customer data and obtaining proper consent for its use in an era where data privacy is of utmost concern. Please provide an alternative version.
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