AT&T appeals FCC fine for selling its customers' location data

In April, the FCC imposed a $57 million fine on AT&T. It was not the only one, since the other two big carriers in the US such as Verizon ($47 million) and T-Mobile ($80 million, $92 million including the fine to Sprint) were also punished. The cause was an investigation into the sale of its clients’ location data without consent. Now, AT&T is appealing this FCC fine.

The reason why the 3 large carriers in the US were fined

According to the FCC investigation, the sanctioned carriers were sharing their customers’ location data with third-party platforms for advertising purposes. The main problem is that clients were not asked for prior consent. The destinations of the data were platforms known as “aggregators.” These are in charge of offering advertising directly aimed at the client’s profile.

In this case, thanks to location data, aggregators could send advertising related to sites close to the client. For example, you pass by a shoe store, and shortly after, you receive a discount coupon for a new pair of shoes.

The big fine on AT&T and other carriers is the product of an investigation lasting about 4 years, starting in 2020. Jessica Rosenworcel, chairwoman of the FCC, called the sale without consent of location data a failure to “protect the information entrusted to them.” She also recently said that “this ugly practice violates the law — specifically Section 222 of the Communications Act, which protects the privacy of consumer data.”

The FCC put its eye on these carriers when the media revealed that some were carrying out this practice. At that time, the destination of the data was said to be bail-bond companies and bounty hunters.

AT&T appeals the fine imposed by the FCC

AT&T does not agree at all with the fine imposed by the FCC, so it’s appealing it to the Fifth Circuit. The carrier did so yesterday, calling the fine “arbitrary, capricious, and contrary to the law.” According to them, they have the right to carry out the practices for which they were sanctioned. AT&T argues that the location data is not “customer proprietary network information.” Therefore, they consider that it is not protected under Section 222 of the Communications Act.

It’s worth noting that AT&T will not be the only one to appeal the FCC fine. Verizon and T-Mobile have already confirmed that they will do the same soon. The telecommunications industry will be attentive to this case. The ruling may mark a key precedent for the management of customer location data.