Last month, the FCC imposed fines totaling $200 million on the nation’s leading wireless providers for sharing customer location data with third-party platforms without consent. These platforms, known as aggregators, sell the data to third-party customers for targeted advertising and other uses. Have you ever received a digital coupon for a store you just passed by, like Sunglass Hut? This is how it happens.
The investigation began in 2020, culminating in April 2024 with Verizon being fined $47 million, T-Mobile fined $80 million (including Sprint’s $12 million due to their acquisition), and AT&T fined $57 million. According to Law 360, AT&T is appealing their fine, claiming an abuse of discretion by the FCC.
FCC Chairwoman Jessica Rosenworcel criticized the carriers for failing to protect customer data entrusted to them. The investigation was prompted by reports of wireless carriers selling real-time location data to aggregators who then sold it to bail-bond companies and bounty hunters. Rosenworcel stated that this practice violates Section 222 of the Communications Act, which protects consumer privacy.
AT&T has appealed to the Fifth Circuit, arguing that the location data in question does not fall under customer proprietary network information as defined in Section 222. Verizon and T-Mobile also plan to appeal the FCC’s actions. AT&T stated that the FCC’s findings were arbitrary and capricious and that the penalties imposed were unfounded.
En résumé:
– FCC fined major wireless providers $200 million for sharing customer location data without consent
– Investigation began in 2020 and resulted in fines for Verizon ($47M), T-Mobile ($80M), and AT&T ($57M)
– Carriers accused of failing to protect customer data
– AT&T appeals FCC’s orders, claiming arbitrary actions
– Verizon and T-Mobile also plan to appeal
Stay tuned for updates as this story unfolds!