Verizon to pay $7.4M to settle FCC investigation into customer information being used for marketing

[freshwest]

The FCC said the payment will be the largest such in the agency’s history for settling an investigation related to the privacy of telephone customers’ personal information.

BY Michael Sorrentino - September 3, 2014

...According to the FCC, the agency alleges the company was using the information without first providing customers with a required notice or obtaining their consent for several years.

"Beginning as early as 2006, Verizon failed to generate the required opt-out notices to approximately two million of the company's customers," says an adopting order from the agency released Wednesday. "These failures deprived those customers of information about Verizon's marketing practices and its customers' right to deny Verizon permission to access or use their personal data to market new Verizon services to those customers."

The FCC said the payment, which is going to the U.S. Treasury, will be the largest such payment in the agency’s history for settling an investigation related to the privacy of telephone customers’ personal information.

http://www.nydailynews.com/news/politics/verizon-pay-7-4m-settle-fcc-privacy-investigation-article-1.1926966

Seems a straightforward case of not respecting their customers. Don't know how the figure of $7.4M was decided upon.

Big thing is they have to stop doing this. Because of mean old regulators.

[Newsjock]

1. Wow, $7.4M will hurt them so hard

It might bankrupt the entire corporation!

Cost of doing business, etc.

[freshwest]

2. The size of the fine isn't the issue. Compliance is. Now they have to do so. Which is the end goal.

They will not be doing 'business as usual' so the 'cost of doing business' line does not apply here.

The result of lawsuits is more to change practices than punish. This may also open the door for a class action lawsuit that will cost Verizon more. That's where the real punishment comes in.

I get the feeling from so many online comments, that nothing less than bankrupting companies is satisfactory. We've got the Romneys of the world doing that already.

This was just a fine, not an attempt to hurt them so badly they'd lay off any portiong of their 183,000 employees:

http://www.statista.com/statistics/257304/number-of-employees-at-verizon/

Protecting the privacy of their customers who number over 100M is the desired goal here.

http://appleinsider.com/articles/14/01/21/verizon-wireless-adds-17m-subscribers-in-q4-70-now-have-smartphones

The customers, workers and the company are all interconnected. The wrecking ball approach could hurt both those employees and those who count on wireless service. That is not the role of the FCC.

[MADem]

7. It's a start--and better than nothing. Yes, the penalties could be more severe, but

if more of these cases reach the public eye, the corporate reputation will suffer. And the fines may increase.

The bad publicity won't help them, either. People who have a choice between Verizon and "Something Else" will choose "Something Else."

[customerserviceguy]

3. $7.4 million for the government

and not a penny for people who were screwed by Verizon like me, who was a customer of that wretched company back in 2006. Not even the nickels and dimes that the class action lawsuit attorneys get for the wronged while they collect their millions. And this settlement is ultimately going to be paid for by current Verizon ratepayers, of which I am never ever going to be one again.

Justice, indeed.

[ripcord]

4. Exactly

The government wasn't wronged the customers were.

[freshwest]

5. No one says the government was wronged. But that same government has stopped them.

[freshwest]

6. A fine is not justice. It's an incentive to follow the law. You want punishment, join a suit along

with a 100M others. For sure, the recompense would be small. I don't expect anything good from these providers and never went with AT&T or Verizon or whoever. Can't afford any fancy service or even texting, just plain old phone for $37 a month on the same plan I've had for years with T-Mo. No computer access or any of that stuff.

Exactly how did Verizon injure you, if you don't mind saying so? Did they give your personal data to some criminal? Did they over charge you on your contract?

Did you suffer from bad connections or missed calls? Did they damage your credit and ability to rent a place to live or buy a vehicle or home? Did you lose a job or relationship because of it or you or someone you care about suffer serious injury due to a missed call like an emergency call? Did the cost run you away?

I don't understand the heat on this subject as I am confronted with things most of us are that I regard as much more harmful than cellphone providers. Like people being denied care, food, shelter or other rights. I can't get upset about the cellphone but I am not in the same position as others, no doubt. Each person has triggers.

I posted this merely to inform DU that Verizon will not be able to market their data to corporations anymore. To me, that's good news, if only to protect that 100M people.

Justice is a much bigger concern, and this is not about people being shot by police, etc.

Just sayin'

[MADem]

8. This is DU, where people can take the good news that Verizon can't screw people over by

swiping and reselling their private details anymore, and manage to make it BAD NEWS that they didn't get a check for three dollars out of the bargain--after the lawyers got their bite of the apple.

Eh...!

[freshwest]

9. Okay... Honestly, I thought there was a lot of pain behind that comment...

[MADem]

10. More like exhaustion tinged with disgust.

The trolls are winning, maybe...?

[freshwest]

14. Well, if any do, they haven't won much. Nor covered themselves in glory.

Not calling out any of the posters in this thread as I don't know them from Adam or Eve, as the case may be. Just figure anything causing bitterness after 8 years has to be a doozy. I've definitely been effed but good so many times I can't hold onto it all.

Besides:



'It's just a plant!' said the hero, just before it nearly destroyed the secret installation in Cheyenne Mountain. Yes, that place!

Which allegedly operated America's most valued intergalactic means of travel. That is to say, a wormhole built by ancient aliens as a stargate.

And the coolest thing that never happened, so we're supposed to think...

Always loved that pic.

[Cha]

11. "Big thing is they have to stop doing this. Because of mean old regulators." This is what a few

didn't seem to get in the comment section. It's all Wah wah wah.. not even knowing what the OP was about.

Thank you, freshwest!

[freshwest]

12. You're welcome. Things are 'progressing' slowly but surely. I didn't know about Verizon

doing that...

Thought they'd have followed the regs earlier. Now they will...

[Cha]

13. I know.. it's actually amazing News!

[freshwest]

15. Yes that is over a 100M people who won't be used that way.

That is to say, about one in three Americans. I thought the numbers were significant, not the fine. It's just a reminder, that 'business as usual' does not trump privacy rights for Americans. Just like the call for demilitarization of cities since Ferguson. It will take some time, and the only ones really heartbroken will be the wailers at Infowars.

Just sayin'

[Cha]

16. Another kick for your OP!

[sheshe2]

17. Sorry it took me so long, freshwest.

Wow!

I have no choice, I have Verizon because my apartment was already wired with it.

In addition to the payment, Verizon will also have to place an opt-out notice on every invoice to every Verizon customer, designate a senior corporate manager as a compliance officer, develop and implement a three-year compliance plan among other responsibilities.

Read more: http://www.nydailynews.com/news/politics/verizon-pay-7-4m-settle-fcc-privacy-investigation-article-1.1926966#ixzz3CNSanBmo

I am going to have to check out my next bill for the opt-out! Thanks for the heads up!

[freshwest]

18. You're welcome. I'm stuck with Comcast but have negotiated a better deal every year.

I'd still rather have the Scandinavian model. But alas, Americans are not ready to embrace that.

Corporations are suing the FCC for not allowing them to kick out public broadband to keep their current monopolies, which don't even serve the areas the cities do!

We've got to stop this kind of thinking. It may not be in a my lifetime.

[sheshe2]

19. I get to change every year and save as well, freshwest.

I am not really unhappy with them, other than using my personal information. I have always had quick responses from them. The last time my cable wire detached from the house they were here on a Saturday within a half hour.

Agreed though, that won't happen in my lifetime either. The Corporations are all about them and never about us.

As an aside, I got to Market Basket today. I was out of everything. They were stocking the shelves like crazy, however they have a way to go.