Seriously Risky Business Newsletter
May 02, 2024
The FTC Is The Tip of The Spear
Presented by
Policy & Intelligence
This week the US Federal Communications Commission (FCC) levied nearly USD$200m in fines against the country's largest mobile telecommunications providers for selling customers' location data without their consent.
The FCC says each of the telcos involved—Verizon, AT&T, Sprint and T-Mobile—sold customer location data to aggregators despite a 2007 regulation that required them to obtain consent from customers to do so. The aggregators then resold the data to third-party location-based service providers. In one example, aggregators shared AT&T customer location data with 88 third party entities directly or indirectly. They shared location data from other telcos with similar numbers of third parties.
Some carriers argue they shouldn't be fined because they discontinued the practice in 2019. This is an appealing argument at first glance, but the FCC started these investigations after a 2018 New York Times article showed the data was being abused by a Missouri sheriff. We're not sure companies should be let off the hook just because they stop a troubling practice when it receives unwelcome public attention.