Verizon's Location Data Sell-Off Ruled Unlawful by US Court of Appeals

Court Rejects Verizon's Claim that Selling Location Data Without Consent is Legal In a significant ruling, the US Court of Appeals for the 2nd Circuit has rejected Verizon's attempt to overturn a $46.9 million fine for selling customer location data without their consent. The decision, issued today, upholds the Federal Communications Commission's (FCC) authority to regulate the sale of sensitive user information. The FCC fined the three major carriers - Verizon, AT&T, and T-Mobile - last year for violating federal regulations. The companies had argued that the sales were permissible under existing laws, but the court disagreed. "This ruling confirms that the FCC has the power to protect consumers' personal data," said FCC Commissioner Jessica Rosenworcel in a statement. The case began in 2018 when it was revealed that the three carriers had sold location data to third-party companies without their customers' consent. The practice, known as "location sharing," allowed these companies to track users' movements and sell the information to law enforcement agencies or other interested parties. Verizon's challenge to the fine was one of several lawsuits filed by the carriers against the FCC. While AT&T won its case in the 5th Circuit Court, T-Mobile lost in the District of Columbia Circuit. The different outcomes have raised concerns about the potential for conflicting court decisions and the impact on the FCC's ability to regulate the industry. "This ruling is a significant victory for consumers' rights," said Gigi Sohn, a former FCC commissioner who has been critical of the carriers' practices. "It sends a clear message that companies must prioritize transparency and consent when handling sensitive user data." The 2nd Circuit's unanimous decision was issued by a panel of three judges, who concluded that the FCC had acted within its authority in imposing the fine. The ruling is seen as a major blow to Verizon's efforts to challenge the FCC's regulations. As the case continues to unfold, experts predict that it may eventually reach the Supreme Court. "This decision highlights the importance of clear and consistent regulation of the telecommunications industry," said University of California, Berkeley law professor, Eric Goldman. "The courts must work together to ensure that consumers' rights are protected." For now, the FCC's authority to regulate the sale of location data remains intact. The agency has vowed to continue enforcing federal regulations and protecting consumers' personal information. Background: In 2018, it was revealed that Verizon, AT&T, and T-Mobile had sold customer location data without their consent. The FCC fined the three carriers $200 million in total for violating federal regulations. Verizon's challenge to the fine was one of several lawsuits filed by the carriers against the FCC. Additional Perspectives: "This ruling is a significant victory for consumers' rights," said Gigi Sohn, former FCC commissioner. "It sends a clear message that companies must prioritize transparency and consent when handling sensitive user data." "The courts must work together to ensure that consumers' rights are protected," said University of California, Berkeley law professor Eric Goldman. Current Status: The 2nd Circuit's decision upholds the FCC's authority to regulate the sale of location data. Verizon has lost its challenge to the fine, which stands at $46.9 million. The case may eventually reach the Supreme Court as conflicting court decisions raise concerns about the impact on the FCC's ability to regulate the industry. Next Developments: The FCC will continue to enforce federal regulations and protect consumers' personal information. The carriers may appeal the decision, potentially taking it to the Supreme Court. *Reporting by Arstechnica.*