Years ago, the agency found out that the carriers were selling location data to aggregators.
A cumulative fine of two hundred million dollars has been levied against the major mobile carriers in the United States by the Federal Communications Commission for selling access to the location information of their customers without first obtaining their corresponding consent. The amount that AT&T is required to pay is $57 million, while Verizon is required to pay $47 million. As a result of the merger that took place between Sprint and T-Mobile two years ago, the two firms are currently facing a penalty that would equal to a combined total of $92 million. After the activities of the carriers were brought to light in 2018, the Federal Communications Commission (FCC) undertook a comprehensive investigation into the improper disclosure and sale of real-time location data belonging to subscribers.
According to Jessica Rosenworcel, the Commissioner of the Federal Communications Commission, the practice was summarized as follows: the carriers sold “real-time location information to data aggregators, allowing this highly sensitive data to wind up in the hands of bail-bond companies, bounty hunters, and other shady actors.” According to the agency, the scheme began to fall apart after it was brought to the public’s attention that a sheriff in the state of Missouri was monitoring a large number of persons by utilizing the location information that a business known as Securus obtains from wireless providers. At correctional facilities across the nation, Securus offers its services in the field of communications communication.
Despite the fact that the carriers eventually stopped their operations, the agency stated that they continued to run their programs for a year after the practice was brought to light and after they made a commitment to the FCC that they would stop selling consumer location data. Furthermore, they continued to operate without putting sufficient protections in place to guarantee that lawful services that use their customers’ information, such as roadside assistance and medical emergency services, are in fact gaining the authorization of their consumers to track their positions.
The corporations have informed Fast Company that they intend to contest the fines that have been imposed. It was exorbitant, according to T-Mobile, which is facing the largest penalty, which is worth $80 million. Sprint was penalized $12 million under the same circumstances. A statement made by AT&T stated that the ruling was devoid of “both legal and factual merit” and that it “perversely punishes [the companies]for supporting life-saving location services.”