TL;DR: A federal appeals court has upheld a $46.9 million fine against Verizon for sharing customers' real-time location data without their consent, rejecting the company's argument that such practices were legal. The decision confirms that the FCC has broad authority to regulate wireless carriers and enforce privacy protections, marking another major victory for consumer advocates.
In April 2024, the Federal Communications Commission imposed nearly $200 million in fines on several major wireless carriers, including Verizon Communications, for selling access to sensitive location data to third-party aggregators. These aggregators, in turn, provided the information to unauthorized parties, including bounty hunters and bail-bond companies, putting consumers at serious risk. The FCC concluded that carriers had failed to implement reasonable safeguards despite prior warnings, highlighting long-standing gaps in how carriers manage personal data.
Verizon challenged the fine in the US Court of Appeals for the 2nd Circuit, arguing that device-location data does not qualify as "customer proprietary network information" under Section 222 of the Communications Act. The court rejected the claim, ruling that location information clearly falls under the statute's protections and that the FCC acted within its legal authority. The judges also noted that the forfeiture order did not violate Verizon's constitutional rights, solidifying the commission's regulatory reach.
The ruling mirrors a prior case in which judges fined T-Mobile $92 million for similar violations. In that case, the US Court of Appeals for the District of Columbia Circuit also rejected the "Uncarrier's" claim that selling location data was lawful, signaling a broader shift toward enforcing consent requirements. By contrast, TVTech reported that AT&T successfully overturned a $57 million fine, citing constitutional concerns over the FCC's enforcement methods. These outcomes highlight the evolving legal landscape and the tension between corporate rights and regulatory oversight in data privacy.
Consumer advocates say the ruling sends a clear warning to carriers that they must not share location data without explicit consent. Experts add that without strict oversight, companies may exploit loopholes to monetize sensitive information, underscoring the need for stronger privacy protections. While Verizon has vowed to appeal, the decision signals that courts are willing to hold telecom giants accountable, and it could shape how the FCC enforces future cases. The outcome is also likely to influence industry practices and legislative debates, reinforcing calls for greater transparency and stronger federal privacy protections.
Court rejects Verizon claim that selling location data without consent is legal
