U.S. Court Maintains Verizon’s $46.9 Million Fine for Personal Location Data Violations

Verizon Faces $46.9 Million Fine Over Location Data Sharing

September 12, 2024

Court Upholds FCC penalty Against Verizon

A Federal appeals court on Wednesday affirmed the Federal Communications Commission’s (FCC) $46.9 million penalty against Verizon Communications for the unlawful dissemination of customer location details. The Second Circuit Court of Appeals dismissed Verizon’s challenge, asserting that the data in question unequivocally falls under the definition of “customer proprietary network information.”

The ruling stems from a broader investigation in April 2024, where the FCC imposed nearly $200 million in fines collectively on major U.S. wireless providers for mishandling sensitive location data. This included penalties for T-Mobile ($80 million), AT&T ($57 million), and Sprint ($12 million), which has since been acquired by T-Mobile.

Verizon initially paid the fine but contested the decision legally. Representatives for the company have yet to issue a public statement regarding the court’s ruling. The FCC’s investigation revealed that carriers were selling real-time location data to intermediaries, possibly exposing it to entities such as bail bond agents and private investigators.

The Scope of the Issue and Past Practices

According to former FCC Chair Jessica Rosenworcel, the sale of location information created a security risk, allowing sensitive data to reach parties with questionable intentions. While carriers had previously offered location data access for legitimate purposes-including roadside assistance, emergency services, and fraud prevention-the FCC found that adequate safeguards were not in place to prevent unauthorized access.

The agency stated that the carriers based their practices on assurances from data aggregators that customer consent would be obtained, but these assurances proved insufficient. Concerns were first raised by lawmakers in 2019 regarding the sale of location-based services to a wide range of organizations, including those involved in bounty hunting.

Furthermore, the FCC noted that even after being informed of unauthorized data access, carriers continued operating these programs without implementing necessary security measures. This lack of responsiveness further fueled the agency’s decision to levy substantial fines.

Carrier	Fine Amount
Verizon Communications	$46.9 Million
T-Mobile	$80 million
AT&T	$57 million
Sprint (now T-Mobile)	$12 Million
Total	$195.9 Million

Did You Know? In february 2020, the FCC initially proposed these fines, highlighting the extended period of investigation and deliberation before the penalties were finalized.

The Future of Location Data Privacy

This case highlights the increasing importance of data privacy in the telecommunications industry. As location data becomes more valuable for various applications-from targeted advertising to smart city initiatives-safeguarding customer information is paramount.

Consumers are becoming increasingly aware of how their data is collected and used. The demand for greater clarity and control over personal information is driving regulatory changes and pushing companies to adopt more responsible data practices.

Experts predict that further regulations and stricter enforcement actions will likely follow, forcing carriers to invest in robust security measures and prioritize customer privacy.

Pro Tip: Regularly review the privacy settings on your smartphone and within your carrier’s app to understand what data is being collected and how it is indeed being used. Consider utilizing privacy-focused apps and services to enhance your control over your location data.

Frequently Asked Questions About Location Data Privacy

• What is “customer proprietary network information”? This includes data about a customer’s network usage, services, and location, which carriers are obligated to protect.
• Why is location data considered sensitive? Location data can reveal a great deal about a person’s habits, movements, and personal life, making it a prime target for misuse.
• What steps can consumers take to protect their location data? Review privacy settings, limit app permissions, and use privacy-focused tools.
• What was the FCC’s primary concern in this case? The FCC was concerned that carriers were selling location data without adequate safeguards, potentially exposing it to unauthorized parties.
• Will this ruling affect the cost of wireless services? It is possible that carriers may pass on the cost of enhanced security measures to consumers, but the extent of any price increases remains to be seen.

What are your thoughts on this ruling? Do you feel confident that your location data is adequately protected by your wireless carrier? Share your opinions in the comments below!

How does the Verizon case demonstrate the importance of transparency regarding data collection practices?

The Ruling and Its Implications for Data Privacy

On September 11, 2025, a U.S. federal court upheld a $46.9 million fine levied against Verizon by the Federal Trade Commission (FTC) for illegally sharing and selling customers’ location data to third parties without explicit consent. This decision marks a significant victory for consumer data privacy advocates and reinforces the FTC’s authority to regulate how companies handle sensitive personal information. The original complaint, filed in 2020, alleged that Verizon misled consumers about its location tracking practices and failed to adequately protect their geolocation data.

Understanding the Verizon Case: What Happened?

The FTC’s investigation revealed that Verizon collected precise location data from its subscribers through its mobile apps and other services.this data was then sold to advertising companies, data brokers, and other third parties for purposes like targeted advertising and analytics.

Here’s a breakdown of the key violations:

* Lack of Transparency: Verizon didn’t clearly disclose to customers how their location data was being used and with whom it was being shared.

* Insufficient Consent: The FTC argued that Verizon’s consent mechanisms were inadequate and didn’t provide consumers with a meaningful opportunity to opt-out of location data sharing.

* Precise Location Data: The data shared wasn’t simply general location; it was often precise geolocation data, capable of pinpointing a user’s whereabouts with a high degree of accuracy.

* Third-party Access: Verizon allowed third parties access to this data without ensuring they had adequate data security measures in place.

The FTC’s Authority and the Role of Consumer Protection

the FTC’s action against Verizon is rooted in its authority to protect consumers from unfair or deceptive trade practices. This case highlights the FTC’s increasing focus on data security and privacy in the digital age.The Commission is actively pursuing enforcement actions against companies that misuse consumer data, especially sensitive data like location information.

This ruling sends a clear message: companies must be obvious about their data collection practices and obtain explicit consent from consumers before sharing their personal data with third parties. The fine serves as a deterrent, signaling that violations of consumer privacy will not be tolerated.

what Does This Mean for Consumers?

This court decision has several vital implications for consumers:

* Increased Awareness: The case has raised public awareness about the extent to which companies collect and share location data.

* Stronger Privacy Rights: The ruling reinforces consumers’ rights to control their personal information and to be informed about how it’s being used.

* Demand for Transparency: Consumers are increasingly demanding transparency from companies regarding their data practices.

* Potential for Future Lawsuits: This case could pave the way for future lawsuits against companies that violate consumer privacy laws.

Practical Tips for Protecting Your Location Data

Here are some steps you can take to protect your location privacy:

1. Review App Permissions: Regularly review the location permissions granted to apps on your smartphone. Revoke access for apps that don’t need it.
2. Limit Location Services: Disable location services altogether when you don’t need them. Most smartphones allow you to control location access on a per-app basis.
3. Use privacy-Focused Apps: Consider using privacy-focused apps and browsers that prioritize data protection.
4. Read Privacy Policies: Take the time to read the privacy policies of the apps and services you use.
5. Opt-Out of Data Sharing: Look for options to opt-out of data sharing in app settings and privacy policies.
6. Utilize VPNs: A Virtual Private Network (VPN) can mask your IP address and encrypt your internet traffic, adding a layer of data security.

The Broader Landscape of Location Data privacy

The Verizon case is part of a larger trend of increasing scrutiny of location data practices. other companies, including Google and Facebook (Meta), have faced similar criticism and legal challenges regarding their handling of geolocation data.

* California Consumer Privacy Act (CCPA): California’s CCPA grants consumers significant rights over their personal information,including the right to know what data is being collected,the right to delete their data,and the right to opt-out of the sale of their data.

* General Data Protection Regulation (GDPR): The GDPR, a European Union law, sets strict rules for the collection and processing of personal data, including location data.

* Ongoing Legislative Efforts: Ther are ongoing efforts at the federal level to enact extensive data privacy legislation.

Real-World Example: The Impact of Location Tracking on Domestic Violence Survivors

The misuse of location data can have particularly serious consequences