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Verizon To Pay $1.35 Million Fine To Settle US Privacy Probe (reuters.com)

chasm22 writes: Verizon Communications Inc agreed to pay a $1.35 million fine after the Federal Communications Commission said on Monday it found the company's wireless unit violated the privacy of its users. Verizon Wireless agreed to get consumer consent before sending data about "supercookies" from its more than 100 million users, under a settlement. The largest U.S. mobile company inserted unique tracking codes in its users traffic for advertising purposes. Supercookies are unique, non-removable identifiers inserted into web traffic to identify customers in order to deliver targeted ads from Verizon and others. The FCC said Verizon Wireless failed to disclose the practice from late 2012 until 2014, violating a 2010 FCC regulation on internet transparency. The FCC also said the supercookies overrode consumers privacy practices they had set on web browsers, which led some advocates to call it a "zombie cookie." Under the agreement, consumers must opt in to allow their information to be shared outside Verizon Wireless, and have the right to "opt out" of sharing information with Verizon.

51 comments

  1. Cool by Anonymous Coward · · Score: 0

    I've had Verizon forever. Hope to get some money from this.

    1. Re:Cool by spacepimp · · Score: 4, Insightful

      Out of the millions of customers and millions in lawyer fees subtracted from the wrist slap fine they received, you would be lucky to get the price of a stamp covered.

    2. Re:Cool by rudy_wayne · · Score: 2

      I've had Verizon forever. Hope to get some money from this.

      The fine works out to just slightly more than one penny per user (1.35 cents). I'm sure being fined a penny per user will really teach Verizon a lesson.

    3. Re:Cool by Anonymous Coward · · Score: 0

      I don't want any money. I just want them to return my privacy. Apparently they took it. I'd like it back please. Cleaned and pressed if possible.

  2. Cost of doing business? by Anonymous Coward · · Score: 1

    So then just a cost of doing business? Glad to know the FTC has some real teeth there.

  3. Aaaaand queue the lawyers by mitcheli · · Score: 2

    When do I get my $1.35 from the class action suit?

    --
    Select from tblFriends where interesting >= 4;
    1. Re:Aaaaand queue the lawyers by fustakrakich · · Score: 2

      $1.35? Is that what a nickel is worth these days?

      --
      “He’s not deformed, he’s just drunk!”
    2. Re:Aaaaand queue the lawyers by bill_mcgonigle · · Score: 1

      This "fine" would only amount to fractions of a penny per user for years of what are essentially MITM attacks.

      The FCC is doing its job here - to keep out competition in the market and then to fool the customers into thinking that there's a government "doing something" so they don't have to themselves get upset about the malfeasance of these carriers. The fine represents a notional "Verizon was fined for its behavior", for future reference, without citation.

      Yes, yes, your seventh-grade social studies theory is much prettier than empirical reality.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    3. Re:Aaaaand queue the lawyers by Anonymous Coward · · Score: 0

      Annnnd who pays for a wipe and reload to get rid of the super cookie ?

    4. Re:Aaaaand queue the lawyers by Anonymous Coward · · Score: 0

      Math is not your strong suit, nor the judge's.

      V probably spent more on lawyers than this bad-joke of a 'punishment'

    5. Re:Aaaaand queue the lawyers by Anonymous Coward · · Score: 1

      right after they add the "$8 regulatory compliance fee" to your bill.

    6. Re:Aaaaand queue the lawyers by Anonymous Coward · · Score: 0

      You get what you get and you don't throw a fit.

      Stay in your place, little man.

    7. Re:Aaaaand queue the lawyers by rudy_wayne · · Score: 1

      V probably spent more on lawyers than this bad-joke of a 'punishment'

      True. However, I'll bet that the benefit to Verizon was far greater than the cost of the fine and lawyers fees.

    8. Re:Aaaaand queue the lawyers by Anonymous Coward · · Score: 0

      Annnnd who pays for a wipe and reload to get rid of the super cookie ?

      FYI - That is not how UIDH works. An HTTP "X-" tag is added to the HTTP headers created by your phone, but that "addition" doesn't happen in your phone.

      As for the the crap / cookies setup by Turn, that's anyone's guess on how to clean them out. Sounds like Turn ought be held responsible fore the mess they made.

  4. Chump change... by Anonymous Coward · · Score: 5, Insightful

    $1.35 million dollars is chump change to verizon - should be $135 million so they notice it.

    1. Re:Chump change... by swb · · Score: 4, Insightful

      $135 million is chump change. What kind of profit do you think they made selling this tracking information on millions of wireless users over months/years of doing it?

      It should be $100 million dollars PLUS $50 per subscriber cookie. The tracking cookie database and any other databases built from this data should be scrubbed, as verified by a third party auditor chosen by the FCC, billed to Verizon. They should be barred from re-implementing this system under any other name or any other opt-in format with a follow-up audit by FCC chosen auditors.

      Any future violation of this nature should be fined at $100 per violation.

    2. Re:Chump change... by Anonymous Coward · · Score: 0

      I said they'd notice it - not that it would hurt. But yes, I agree the punishment should leave a mark so they have a reminder the next time they get stupid.

    3. Re:Chump change... by swb · · Score: 1

      In theory, the punishment should be severe enough that it drains any profit received from the prohibited behavior.

      If Verizon made $300 million in profit from the cookies, Verizon should lose $300 million.

    4. Re:Chump change... by BrookHarty · · Score: 1

      We need a +10 insightful here.

    5. Re:Chump change... by Anonymous Coward · · Score: 0

      I agree - Mod up - are FC devoid of common sense/jurisprudence.
      Certainly call centers lying need a real stiff penalty.

      However a BIG problem remains. Have the shitheads who designed this - still doing the same in UK, Germany, Japan, Australia and on other wireless systems?
      What if their links supercookie you - and Verizon just happens you 'buy' that data.

    6. Re:Chump change... by Anonymous Coward · · Score: 0

      In theory, the punishment should be severe enough that it drains any profit received from the prohibited behavior.

      If Verizon made $300 million in profit from the cookies, Verizon should lose $300 million.

      So....

      If a forensic audit conducted by an independent 3rd party proves that no profit was made, will you shut your pie hole?

      FWIW... Profit is generally defined as what you have left after you pay the expenses and taxes related to generating the corresponding income.

      So, you would have to wonder what expenses were directly related to generating that income? Large corporations have all sorts of "expenses".

  5. The Ten Commandments by Anonymous Coward · · Score: 2, Funny

    I, Anonymous Coward, have received ten commandments from God during my time on Mount Goatse. Obey these commandments and you shall have favor with the Lord.

    1. Microsoft is your God. Thou shalt not worship any other Gods. Windows is the literal word of God, perfect and true.
    2. Thou shalt keep the first post holy. Thou shalt not post on-topic comments that defile the sacred first post.
    3. Thou shalt not dishonor the names of Microsoft, Windows, Bill Gates, and Steve Ballmer. They are holy and of God.
    4. If you must run Linux, thou shalt only use a distro with Systemd. Any distro that does not use SystemD is an abomination in my eyes and of the evil one.
    5. Thou shalt follow the Digital Millennium Copyright Act.
    6. Thou shalt not install Linux on any drive that contains Windows.
    7. Thou shalt pay your $1399 licensing fee to SCO for all of thine Linux systems.
    8. Thou shalt not block ads.
    9. Thou shalt not turn away and hide from your God. Thou shalt share all telemetry data with Microsoft.
    10. Thou shalt not attempt to gain unauthorized access to any computer system or share private information with anyone for whom it is not intended.

  6. Pemalty is more a "fee to do evil shit" by Bugler412 · · Score: 4, Insightful

    $1.35 million is such a tiny "penalty" that it really gets me steamed. This is a company that was actively modifying user's request to suit their interests, with no opt out and no ability for the user to even know it was happening. And when I contacted their support over it, the actively and vehemently denied doin it even as I watched it happening in the packet capture between my phone and web server, even contacted an attorney over it, but he wouldn't take the case due to an inability to assign a dollar value to the "damage". Yes, you could avoid it by using HTTPS/TLS, but given the sloppy coding of many or most apps, and near zero visibility of the workings of those apps, how could you be sure you were avoiding it (and yes, I have to use apps occasionally for my side work that have no corollary web interface). This "fine" would only amount to fractions of a penny per user for years of what are essentially MITM attacks.

    1. Re:Pemalty is more a "fee to do evil shit" by Anonymous Coward · · Score: 0

      This is why companies do this sort of thing...the worst case scenario just involves them sharing a drop of their profits with the government. They have no disincentives at all.

      Also, this fine is not there to punish nor deter. That's just to placate angry customers, mostly, and to ensure that the government gets its nibble of the pie.

      So, it is that low on purpose, and this only seems strange if you mistakenly believe the intent is punishment.

    2. Re:Pemalty is more a "fee to do evil shit" by swb · · Score: 1

      even contacted an attorney over it, but he wouldn't take the case due to an inability to assign a dollar value to the "damage"

      This is really the problem in a nutshell. It's an abhorrent invasion of privacy but nobody can really calculate a dollar value on the damages incurred. Maybe a megabyte of data, total, on a monthly basis, and even then only if the data wasn't somehow excepted from data usage.

    3. Re:Pemalty is more a "fee to do evil shit" by Anonymous Coward · · Score: 1

      I'll post this as an AC but the funny thing is, I could pay this and not even worry about it. VZ dropped a little this afternoon. No, I didn't sell. It's but a blip in the radar and doesn't mean anything more than that. I wonder how well they monetized this. Needless to say, their filings don't itemize it. At least not as far as I can see.

  7. cost of busines by Lead+Butthead · · Score: 2

    "Pocket change" to Verizon.

    --
    ELOI, ELOI, LAMA SABACHTHANI!?
    1. Re:cost of busines by Anonymous Coward · · Score: 2, Insightful

      "Pocket change" to Verizon.

      Nornally I'd agree. In this case though it's worse than that. Verizon will make more money next year and each subsequent year due to their illegal action than they paid in the fine. What this did is allow people to bootstrap mobile data and prove that consumer information is worth money. It also loaded a bunch of data into Verizon's partners databases (note how there's nothing in the settlement about cleaning that out). Now, however, there are a bunch of other newer techniques for matching web browsers with mobiles and for getting people to agree to give their data. E.g. match their Facebook profile to their ID's kept in cookies by the advertisers. Now that these techniques are widespread and everyone knows they are valuable Verizon doesn't really need their supercookies any more.

  8. 1 Meeeeelion dollars by Anonymous Coward · · Score: 0

    (laughter from the assembled politicians and businessmen)

    Is that all? Ha ha ha!

  9. Wow what a punishment. by penguinoid · · Score: 3, Insightful

    a $1.35 million fine [...] data about "supercookies" from its more than 100 million users

    1 cent per customer, that will show them.

    --
    Don't waste your vote! Vote for whoever you want, unless you live in a swing state it won't matter anyways
    1. Re:Wow what a punishment. by Anonymous Coward · · Score: 0

      a $1.35 million fine [...] data about "supercookies" from its more than 100 million users

      1 cent per customer, that will show them.

      from late 2012 until 2014

      .5 cents per customer per year.

      Doesn't this effectively put a price on your private data? We make an awful big deal about it lately considering it's only valued at a ha'penny.

    2. Re:Wow what a punishment. by dfm3 · · Score: 1

      .5 cents

      But wait... is that a Verizon cent, or half a dollar??

  10. US Government to pay 199 Trillion dollar fine... by pubwvj · · Score: 0

    US Government to pay 199 Trillion dollar fine for violating the privacy of it's citizens as well as those of other countries.

    Now that would be an interesting headline.

  11. Opt-in, really? by MobyDisk · · Score: 3, Interesting

    Under the agreement, consumers must opt in to allow their information to be shared outside Verizon Wireless

    And since there is no logical reason to ever opt-in to this, I wonder what shady process the opt-in will take. Probably a link that pops up on your phone at some point, saying "By using your mobile data plan you agree to the Verizon web browsing policy..." and everyone will click "yes." The one person who clicks the "read agreement" link, which will be me, will get bored by page 5 out of 453 pages. You bet it doesn't say "By clicking yes, you agree to allow Verizon to provide information to advertisers at no benefit to you." with a default of "No."

  12. Corporation's concept of concent by nytes · · Score: 2

    Verizon Wireless agreed to get consumer consent before sending data about "supercookies" from its more than 100 million users, under a settlement.

    Translation: "Continuing use of this service gives your consent to collect and share this information. If you do not consent, please call [number] for our no-hassle cancellation of your service."

    --
    -- I have monkeys in my pants.
  13. hope you get your penny by frovingslosh · · Score: 1

    Don't expect to get anything. Verizon is basically being fined about one cent or less per user for the privacy violation. And it is pretty clear that the FCC just wants their cut of the money that Verizon made from violating user privacy and that they will not make any effort to give you your penny. And, in case you haven't figured it out yet, a penny or less per user fine is not going to discourage this practice in the future.

    --
    I'm an American. I love this country and the freedoms that we used to have.
  14. Compared to RIAA by Anonymous Coward · · Score: 4, Insightful

    http://www.theguardian.com/technology/2012/sep/11/minnesota-woman-songs-illegally-downloaded
    $220,000 for copying 24 songs

    or
    In 2009, a jury ordered Tenenbaum – who graduated from Boston University with a doctorate in statistical physics in May – to pay $675,000 in damages fro copying 30 songs.

    Maybe its about time that corporations started getting fines of 10-20 times their income

    1. Re:Compared to RIAA by Anonymous Coward · · Score: 0

      ... getting fines of 10-20 times their income.

      The problem is, it's not their income, it's the shareholder's income: Which is really a lie, because there's no law requiring the company to pay the shareholders, and many times, the company doesn't. This 'fining the shareholders', 'individual employees are responsible', "too big to jail" bullshit has to stop: Directors need to held personally responsible for the policies and management of the company.

    2. Re:Compared to RIAA by sociocapitalist · · Score: 1

      http://www.theguardian.com/technology/2012/sep/11/minnesota-woman-songs-illegally-downloaded
      $220,000 for copying 24 songs

      or
      In 2009, a jury ordered Tenenbaum – who graduated from Boston University with a doctorate in statistical physics in May – to pay $675,000 in damages fro copying 30 songs.

      Maybe its about time that corporations started getting fines of 10-20 times their income

      So long as politicians, lawyers and judges hold stock in said companies there will be no possibility of justice being done.

      --
      blindly antisocialist = antisocial
  15. Re:US Government to pay 199 Trillion dollar fine.. by KGIII · · Score: 2

    As a person who pays a bunch of taxes and did not support the government doing such things, you're wanting me to pay for it again? First, I had to pay the money that let them do it. Then, I had to pay for the loss of reputation and business associated with it - which is a bit abstract. Now, you want me to pay for the cleanup. All while I've adamantly expressed disdain for the practice...

    *sighs* I guess it's a good thing if you don't earn/have enough to pay much in taxes. So, there's that. I suppose you'll be wanting me to pay the government so that the government can pay the victims.

    --
    "So long and thanks for all the fish."
  16. That's what it means to be a consumer. by Anonymous Coward · · Score: 1

    We're just consumer - a sea of small numbers to these people.

    It also shows how the free markets are anything but. In the Econ 101 textbooks, the markets should take care of this. But as we see, nothing will really change. Telcos, ISPs, cable companies, airlines, banks, etc ... will continues their abuse of us because they know that we'll shut up and take it. We may move to another company - whatever little choice we may have - and get abused by them also.

    And most people are oblivious or just take it. Everyone complains about their cable service, but how many really cut the cord? How many times have you heard, "I can't do without my sports!"

    Me? I am buying less and less because of the quality and non-sense of customer care these days. American companies offer third world service and quality.

     

  17. Yay! by matthewv789 · · Score: 1

    Way to stick it to them, FCC! THAT's how you show these companies who's the boss! Gooooooooo Guv!!!!!

    AKA "What's the least fine we can 'demand' you pay that would look like we did something? We wouldn't want it to be any hindrance to your business, share prices, bonuses, etc. of course, or more than you already paid your attorneys to fight this, but it shouldn't be TOO much less than a penny per customer or people might catch on."

  18. Who else thinks... by tlambert · · Score: 1

    Who else thinks "Privacy Probe" is an oxymoron?

  19. The money isn't the important part. by waspleg · · Score: 1

    This is:

    Under the agreement, consumers must opt in to allow their information to be shared outside Verizon Wireless, and have the right to "opt out" of sharing information with Verizon.

  20. chump change by alw53 · · Score: 2

    This is an awesome result for Verizon because it immunizes them against future class action suits for change that they might find under couch cushions.

  21. Ouch my wrist! by some+old+guy · · Score: 1

    $1.35M isn't even a rounding error to Verizon.

    --
    Scruting the inscrutable for over 50 years.
  22. In terms of a traffic ticket by PortHaven · · Score: 1

    Verizon to pay 1.35 cents fine....

  23. Remember MVNOs also affected by Anonymous Coward · · Score: 0

    I'm a PagePlus customer (they use Verizon's net). When this issue was publicized a few years back, I checked my data connection and found these supercookies too. I believe Verizon had an opt out system for a while, but that didn't seem to work with MVNOs.

  24. Re:US Government to pay 199 Trillion dollar fine.. by pubwvj · · Score: 1

    Don't worry, the gov would pay the fine to itself.

  25. Re:US Government to pay 199 Trillion dollar fine.. by KGIII · · Score: 1

    They don't actually have their own money. In order to pay it, they'll have to use our money to do so. That counts them printing more or loaning more. We have to make up for what is printed.

    Hell, it'd be cheaper just to bomb the hell out the "other countries" you mentioned and just take their shit.

    --
    "So long and thanks for all the fish."