In a significant move to uphold consumer privacy rights, the Federal Communications Commission (FCC) has fined four major US wireless carriers nearly $200 million for unlawfully sharing access to customers’ location data. The fines, initially proposed in February 2020, target AT&T, Verizon, T-Mobile, and Sprint (now merged), highlighting the seriousness of breaching consumer trust and data security.
Verizon faces a fine of nearly $47 million, while AT&T faces a hefty fine of over $57 million. The court found T-Mobile and Sprint, collectively fined $92 million, guilty of selling customers’ real-time location information to intermediaries known as “aggregators,” who then resold this data to various entities, including providers of location-based services.
FCC Chairwoman Jessica Rosenworcel emphasised the gravity of the situation, stressing that wireless carriers possess sensitive data about consumers, particularly real-time location information, which reveals individuals’ movements and identities. This data, if mishandled, can lead to severe breaches of privacy and security.
The practice of sharing such data without ensuring proper consumer consent drew scrutiny from the FCC, especially after a 2018 congressional probe shed light on the matter. Even after informing the carriers of the unauthorised access, the FCC discovered that dozens of location-based services accessed customers’ data without proper consent.
Various entities, including prison phone services, ride-hailing apps, and phone games, rely on location-based services. However, the unauthorised sharing of customer data for commercial gain raises significant ethical and legal concerns, particularly regarding consumer privacy and consent.
In response to the FCC fines, the implicated wireless carriers expressed their intentions to appeal the decision, citing legal and factual discrepancies. T-Mobile, for instance, denounced the decision as excessive and vowed to challenge it. Similarly, AT&T criticised the FCC’s order, emphasising its commitment to consumer protection while disputing the allocation of responsibility for the violations.
Senator Ron Wyden, who spearheaded the 2018 congressional investigation, commended the FCC for holding the companies accountable. He had previously criticised the proposed fines as inadequate, but with the recent decision, he sees progress in ensuring accountability and safeguarding consumer interests.
As the wireless industry grapples with the fallout from these fines, the spotlight remains on the importance of stringent data privacy regulations and robust enforcement mechanisms to protect consumers in an increasingly digitised world.
