Verizon Pays $7.4 Million to Settle FCC Privacy Investigation
by Karl Bode 02:14PM Wednesday Sep 03 2014 Tipped by matcarl
The FCC today announced that Verizon would be settling a privacy investigation into the company's business practices with a $7.4 million fine, the largest privacy-related settlement in the agency's history. According to the FCC announcement
, Verizon failed to notify approximately two million new customers of their privacy rights -- or how to opt out of Verizon marketing -- before those users had their personal information used to market products and services to them.
The violations took place starting in 2006 but weren't discovered by Verizon until 2012, and were reported to the FCC belatedly in early 2013. In addition to the $7.4 million payment, Verizon has agreed to notify customers of their opt-out rights on every bill for the next three years.
"In today’s increasingly connected world, it is critical that every phone company honor its duty to inform customers of their privacy choices and then to respect those choices," said Travis LeBlanc, Acting Chief of the FCC’s Enforcement Bureau in a prepared statement. "It is plainly unacceptable for any phone company to use its customers’ personal information for thousands of marketing campaigns without even giving them the choice to opt out."
Granted Verizon Wireless alone saw revenues of $4.32 billion during just the second quarter alone, so despite being unprecedented in the history of the FCC, the settlement isn't likely to leave much of a dent on Verizon's wallet.
| |newviewEx .. Ex .. ExactlyPremiumReviews:
Verizon are scumbag spammers Not only does Verizon send ads to your phone without permission ... when you sign up for a landline they sell your info to third-party direct marketing mailers that proceed to fill your mailbox with paper spam-trash.
Verizon is no better than a spammer.
| |BonezXBasement DwellerPremium
Re: Guess whos getting a new line item on their bills? I always wondered, where do the fines go in cases like these, the customers don't ever see it, and there is usually a bump in service costs to recover it.
I wonder, if you followed the money how much of that ends up back in the Companies pocket in the form of loans and other infrastructure deployment payment and contract agreements that they never fulfill and just pocket the money anyway, followed with a "dont' like it sue us".
They pay a fine, the fine goes to the government, customers bills go up to recover costs, government gives money to company to expand network, company pockets money, gets sued for breaking contract, pays fine, rinse repeat.