Verizon, AT&T say FCC can’t penalize them for selling location data

Verizon and AT&T have claimed that the FCC cannot penalize them for selling customer location data. The FCC had levied a fine totaling $196 million on T-Mobile, Verizon, and AT&T, for illegally sharing access to consumers’ location data without obtaining their consent.

Verizon, AT&T, and T-Mobile fight back for the right to sell user location data

Earlier this year, the Federal Communications Commission (FCC) had fined T-Mobile, Verizon, and AT&T, “for illegally sharing access to consumers’ location data without obtaining their consent.” The FCC had asked the trio to pay $196 million because the carriers, “failed to take reasonable measures to safeguard customers’ location information.”

As expected, Verizon, AT&T, and T-Mobile decided to challenge the fine and the FCC’s authority to levy the same. Verizon and AT&T have reportedly submitted new court briefs arguing that the FCC can’t punish them.

Verizon’s petition questions the legal basis on which the FCC levied the fine. “Verizon’s petition for review stems from the multiple and significant errors that the FCC, in purporting to enforce statutory consumer data privacy provisions, made in overstepping its authority.” The leading wired and wireless communication company even claimed FC’s orders, “violated both the Communications Act and the Constitution.”

Verizon and AT&T argue over technicalities about FCC’s fines

Back when the FCC had fined the telecom companies, the agency claimed the businesses failed to obtain customer consent before sharing their location data. The FCC also added that these businesses did not stop selling access to the location information even when they realized their procedures weren’t working.

If that’s not serious enough, Verizon, AT&T, and T-Mobile failed to deploy additional safeguards to stop further unauthorized access. Simply put, the FCC claims it imposed the fine because the telecom companies failed to obtain explicit user consent, knowingly continued to sell user location data, and didn’t protect sensitive information.

It is interesting to note that Verizon and AT&T haven’t claimed the FCC is wrong or that it went above and beyond its authority to penalize them. Verizon and AT&T have claimed the fines violate their Seventh Amendment right to a jury trial.

The carriers have further alleged the FCC did not provide them “fair notice”. They have claimed that the FCC didn’t notify them that a regulation (Section 222) about Customer Proprietary Network Information (CPNI) also applies to the user location data.

It is interesting to note that all three carriers have appealed to different courts. This suggests the companies may be employing legal tactics to counter the FCC.