Verizon Faces $1.35 Million Penalty over Privacy Violations

Verizon Communications Inc (VZ.N) needs to pay $1.35 million fine and agree to a consent decree after the Federal Communications Commission (FCC) has found that the telecommunications giant violated the users' privacy.

FCC investigated Verizon's use of "supercookies" in Dec. 2014. "Supercookies" are browser cookies that are unique, undeletable identifiers (UIDH) to send targeted ads into web traffic.  According to Reuters, Verizon violated FCC's regulation on internet transparency. The commission said that the telecommunications company kept the practice from late 2012 to 2014. FCC also claimed that "supercookies" that are called "zombie cookies" by some critics quashes the consumers' privacy practices.

"Consumers care about privacy and should have a say in how their personal information is used, especially when it comes to who knows what they're doing online. Privacy and innovation are not incompatible," FCC Enforcement Bureau Chief Travis LeBlanc, said in the press release.

Verizon violated the Communications Act and the Open Internet Transparency Rule, Forbes reports.  In a press release by FCC, the commission said that the company employed UIDH in 2012 and didn't disclose it to the users.  The FCC also alleged that Verizon didn't alter their privacy policy information to include the use of "supercookies" until March 2015. It was only during the time, the company provided alternative for the users to opt out on the use of "supercookies."

According to Florida Senator Bill Nelson, Verizon's penalty is "a win for consumers that will hopefully make companies think twice before engaging in practices that violate consumer privacy," Android Police reports.

Verizon resolved the issue over a settlement with FCC. Under the agreement, Verizon must pay $1.35 million fine and they must first seek the consumers' opt-in consent before sharing UIDH internally and with third parties. The penalty may sound small for Verizon that has reported revenue of $200 million a day and a total of $20 billion every year. Despite the small fine, the largest wireless telecommunications provider in the U.S. still get a sanction for breaking the rule.

Tags

Verizon, Verizon Wireless, Verizon Wireless FCC settlement, Verizon Wireless privacy probe, Verizon penalized, Federal Communications Commission, supercookies

© 2023 Lawyer Herald All rights reserved. Do not reproduce without permission.