U.S. Carriers Facing $200M in Fines for Selling Customer Location Data

As expected, the United States Federal Communications Commission today proposed fines against the four major wireless carriers in the United States for improperly sharing and selling real-time customer location information without taking "reasonable measures" to protect against unauthorized access to the data.

uscarriersfcc
In a statement [PDF] released today, the FCC says that T-Mobile should pay the most, while Sprint should pay the least. T-Mobile faces a proposed fine of more than $91 million, while the FCC wants AT&T, Verizon, and Sprint to pay over $51 million, $48 million, and $12 million in fines, respectively.

The fines vary based on the length of time that each carrier sold access to its customer location information without safeguards and the number of entities to which each carrier sold access.

Along with the proposed fines, the statement from the FCC admonishes the four carriers for disclosing customer location data without authorization to third-party entities.

"American consumers take their wireless phones with them wherever they go. And information about a wireless customer's location is highly personal and sensitive. The FCC has long had clear rules on the books requiring all phone companies to protect their customers' personal information. And since 2007, these companies have been on notice that they must take reasonable precautions to safeguard this data and that the FCC will take strong enforcement action if they don't. Today, we do just that," said FCC Chairman Ajit Pai. "This FCC will not tolerate phone companies putting Americans' privacy at risk."

All four of the major U.S. carriers sold customer geolocation information to data aggregators like LocationSmart and Zumigo, with those companies then reselling the data to third-party location-based service providers. The data was ultimately provided to law enforcement officials, bounty hunters, bail bondsman, and more.

The FCC says that though exact practices varied, each carrier relied heavily on contract-based assurances that the location-based services providers they worked with would get consent from the customer before accessing the customer's location information, which did not happen.

Carriers had "several commonsense options to impose reasonable safeguards," but ultimately "failed to take the reasonable steps needed to protect customers from unreasonable risk of unauthorized disclosure."

The fines proposed by the FCC today are not final and each carrier will be provided with an opportunity to respond and provide evidence and legal arguments before final fines are imposed.

Popular Stories

Apple CarPlay Ultra instrument cluster themes 01

Apple's CarPlay Ultra Is Here – Does Your iPhone Support It?

Thursday May 15, 2025 5:17 am PDT by
Apple's recently announced CarPlay Ultra promises a deeply integrated in-car experience, but not all iPhone users will be able to take advantage of the new feature. According to Apple's press release, CarPlay Ultra requires an iPhone 12 or later running iOS 18.5 or later. This means if you're using an iPhone 11, iPhone XR, or any older model, you'll need to upgrade your device to access...
Apple CarPlay Ultra instrument cluster themes 01

Apple's 'CarPlay Ultra' Experience Now Available

Thursday May 15, 2025 5:07 am PDT by
Apple today announced that its next-generation CarPlay experience, now dubbed "CarPlay Ultra" begins rolling out today, starting with Aston Martin vehicles. Subscribe to the MacRumors YouTube channel for more videos. CarPlay Ultra is now available with new Aston Martin vehicle orders in the U.S. and Canada. It will also be available for existing models that feature the brand's next-generation ...
iPhone 17 Air Pastel Feature

iPhone 17 Air Battery Capacity and Weight Allegedly Revealed

Monday May 19, 2025 2:22 am PDT by
Apple is expected to launch an all-new ultra-thin iPhone 17 Air later this year, and while there have been plenty of rumors about the camera's overall design and thinness, we haven't heard any details about the device's weight and battery capacity until now. According to the leaker going by the account name "yeux1122" on the Korean-langauge Naver blog, the 6.6-inch iPhone 17 Air has a weight ...
CarPlay Ultra Climate Controls

Apple Says These Vehicle Brands Plan to Offer All-New CarPlay Ultra

Thursday May 15, 2025 8:13 am PDT by
Apple today announced the launch of CarPlay Ultra, the long-awaited next-generation version of its CarPlay software system for vehicles. CarPlay Ultra features deep integration with a vehicle's instrument cluster and systems, built-in Radio and Climate apps, customizable widgets, and more. The interface is tailored to each vehicle model and automaker's identity, and drivers can also adjust...
iOS 18 Siri Personal Context

Apple Will Reportedly Be More Cautious About Announcing New Features Well in Advance

Sunday May 18, 2025 2:50 pm PDT by
Apple plans to mostly stop announcing new features more than a few months before they are ready to launch, according to Bloomberg's Mark Gurman and Drake Bennett. The pair of reporters revealed this noteworthy tidbit towards the bottom of a lengthy report about Apple's artificial intelligence shortcomings today. This alleged change in strategy comes after Apple was forced to delay its more...
Apple Intelligence General Feature

Report: Apple's Next-Gen Version of Siri Is 'On Par' With ChatGPT

Monday May 19, 2025 9:00 am PDT by
Apple has big plans to improve Siri over the next few years, Bloomberg's Mark Gurman and Drake Bennett report. Some Apple executives are now reportedly pushing to turn Siri into a true ChatGPT competitor. A next-generation, chatbot version of Siri has reportedly made significant progress during testing over the past six months; some executives allegedly now see it as "on par" with recent...

Top Rated Comments

Red Oak Avatar
68 months ago
Why is this not a $2B+ fine?
Score: 17 Votes (Like | Disagree)
brucemr Avatar
68 months ago
Since 2007 these carriers have been on notice says FCC? 13 years ago. The fines, $12-$91M are nothing to these companies. Tax write off. What a joke. CEO’s should be facing prison time if USA is serious about stopping this type company behavior.
Score: 9 Votes (Like | Disagree)
farewelwilliams Avatar
68 months ago
Can't wait for all of our cellular bills increasing!
Score: 6 Votes (Like | Disagree)
Doctor Q Avatar
68 months ago
It's ironic that a government agency is fining carriers for providing our personal information to other government agencies, while still other government agencies are demanding that device manufacturers hand over the keys to your personal information. Too bad we can't sic the FCC on those agencies too.
Score: 6 Votes (Like | Disagree)
69Mustang Avatar
68 months ago

Why is this not a $2B+ fine?
Highly effective lobbyists and the low moral standards of the Legislative Branch. Oh, and enough cash changing hands to ensure a lot more cash doesn't have to change hands.
Score: 4 Votes (Like | Disagree)
jlseattle Avatar
68 months ago
So they charge us up the yin yang for services AND sell our data! Great......
Score: 4 Votes (Like | Disagree)