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Verizon Pays $7.4 Million To Settle FCC Privacy Investigation

Posted by samzenpus on from the pay-up dept.

An anonymous reader writes Verizon has agreed to pay $7.4 million because it did not notify customers before using their personal information in marketing campaigns. The FCC discovered that Verizon failed to alert around two million customers of rights that include telling customers how to opt out from having their personal information used. "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," Travis LeBlanc, Acting Chief of the FCC's Enforcement Bureau said.

12 of 50 comments (clear)

  1. That'll teach them by grasshoppa · · Score: 5, Insightful

    Side note: How fast do you suppose Verizon wireless makes 7.4 million? 3 hours? 4?

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    1. Re:That'll teach them by Opportunist · · Score: 4, Insightful

      A better question, how much did they make selling this data?

      Whether laws are heeded by corporations is dependent on a simple formula: what's to be gained by ignoring the law / (chance to get caught * fine). Unless that's below 1, the law becomes simply a cost factor to do business.

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    2. Re:That'll teach them by Mitreya · · Score: 2

      How fast do you suppose Verizon wireless makes 7.4 million? 3 hours? 4?

      Also, how much compensation did the affected customers receive?
      Even if the punishment were painful, why does FCC get all of it?

      Verizon has agreed to notify customers of their opt-out rights on every bill for the next three years.

      Oh, well, never mind. I guess customers got something out of this settlement after all. And in the fourth year, Verizon doesn't even have to notify them about their opt-out rights?

    3. Re:That'll teach them by mythosaz · · Score: 4, Informative

      Verizon's wireless has made as much as 5BN in a quarter recently, but has also had losing quarters too.

      For cocktail napkin math and simplicity's sake, lets say they made 7.4BN last year, making this 1/1000th of their profit.

      Wolfram says 525 minutes.

    4. Re:That'll teach them by NoNonAlphaCharsHere · · Score: 2

      Yeah; that'll certainly be a deterrent next time. By income ratios, that's less than the average person pays for a parking ticket.

    5. Re:That'll teach them by rmdingler · · Score: 2
      I agree the fine is a punishment somewhere on the pain scale beneath fifty lashes with a wet noodle.

      The real downside for Verizon will be the outrage that drives thousands of their customers to... another evil carrier.

      Sigh! Never mind.

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    6. Re:That'll teach them by Ichijo · · Score: 4, Insightful

      And how much will each customer be reimbursed?

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    7. Re:That'll teach them by Jane+Q.+Public · · Score: 3, Insightful

      A better question, how much did they make selling this data?

      Whether laws are heeded by corporations is dependent on a simple formula: what's to be gained by ignoring the law / (chance to get caught * fine). Unless that's below 1, the law becomes simply a cost factor to do business.

      And even that equation is grossly unethical and doesn't backfire as often as it should. But it can, as Ford found out in the Pinto fiasco.

      This is a ridiculously small settlement. How much is that per person? $3.70? AND -- this is just as big of a problem -- will ANY of those people who were actually harmed see any of that money?

      This is what corporate cronyism (or what some people call "market capture") is all about. Government revolving door. It's a travesty and a tragedy. And it's also why I won't do business with Verizon.

  2. Where does the money go? by Anonymous Coward · · Score: 2, Insightful

    What good does this do for the 2 million customers whose personal information was illegally used?

  3. So nice to see the FCC focusing on the big issues. by Jahoda · · Score: 3, Funny

    These are the issues that truly threaten consumer freedom in the marketplace. It's the reason why the FCC was even created: to regulate how telecommunications companies use customer data for marketing. And with such a punishment as this, all I can tell you is that it's a warm sunny day to be an American here in the land of fair-play, privacy, and opportunity.

  4. forget just informing them by onproton · · Score: 4, Insightful

    These "automatic opt-ins" should be completely outlawed in every case. I can't come to terms with the notion that someone's inaction can mean that they agree - it should have to be a positive affirmation.

  5. Does Verizon have a board of directors, CEO? by Mister+Liberty · · Score: 2

    Then do unto them as they did to you. Publish anything you can find on or about them. Remember, doesn't necessarily have to be cheesy.