The Federal Communications Commission (FCC) has imposed fines totaling almost $200 million on four major US telecommunications companies for illegally selling subscribers' location information to data brokers. AT&T, Verizon, Sprint, and T-Mobile US were found to have violated customer privacy by providing sensitive real-time location data to third-party aggregators, who then sold the information to other companies. The fines come as a response to growing concerns about the protection of personal data and the role of data brokers in accessing and distributing sensitive information without proper consent.
The issue of telecom giants selling customer location data first came to light in 2018 when US Senator Ron Wyden raised concerns about Securus Technologies purchasing real-time location data from major wireless carriers. The FCC, under the leadership of Ajit Pai, initiated an investigation and concluded in 2020 that the telcos had likely violated the law. However, the consequences were unclear until now, with the recent imposition of fines.
FCC's Actions and Telcos' Responses:
The FCC ordered AT&T, Verizon, Sprint, and T-Mobile US to pay fines of $57 million, $47 million, $12 million, and $80 million, respectively. FCC Chair Jessica Rosenworcel emphasized the sensitivity of the data involved, stating that the carriers had failed to protect the information entrusted to them. The telcos, however, argue that the responsibility lies with the data brokers who purchased the information and failed to obtain proper consent. AT&T, Verizon, and T-Mobile US have expressed their intention to appeal the fines, highlighting their commitment to customer privacy and their previous actions to address the issue.
Privacy Concerns and National Security Implications:
The unauthorized sale of customer location data raises significant privacy concerns and threatens national security. The availability of personal information, such as location data, to data brokers presents a risk to individuals and can be exploited by malicious actors. A recent study by Duke University revealed that data brokers offered information on US military personnel and their families for as little as $0.12 per record. Protecting personal information has become crucial, especially in the post-Dobbs era, where privacy is a growing concern.
Broader Legislative Efforts:
Apart from the FCC's actions, other entities have also taken steps to address the issue of location data privacy. The Federal Trade Commission (FTC) has initiated investigations into location data brokers, while privacy-oriented legislators in the House of Representatives have proposed a bill to prohibit the US government from purchasing citizens' information from data brokers. These efforts reflect the growing recognition of the importance of safeguarding personal data and ensuring transparency in data handling practices.
The FCC's imposition of fines on major US telcos for selling customer location data highlights the need for stricter regulations and better protection of personal information. Customers trust telecommunications companies with sensitive data, and any mishandling or unauthorized sharing of such information can have serious consequences. While the telcos argue that the responsibility lies with data brokers, the FCC holds them accountable for failing to protect their customers' data adequately. As privacy concerns continue to grow, it is essential for both regulators and companies to prioritize data protection and work towards ensuring a more secure digital environment for individuals.