Verizon Communications is paying the US government a settlement of $7.4 million following an investigation into how the company notifies customers of their privacy rights before using their information for marketing, according to the US Federal Communications Commission. This marks the largest fine relating to phone customers’ privacy in FCC history. The agency’s investigation discovered that beginning in 2006, the company didn’t provide roughly 2 million new landline telephone customers with proper privacy notices—explaining how to opt out of having their personal information provided for marketing offers—in their first bill. Under US law, phone companies cannot use customers’ personal data for marketing without their permission. Under the terms of the settlement, Verizon will send opt-out notices with every telephone bill. Verizon said that it advertently violated FCC rules that it takes the agency’s regulations seriously, and that it has implemented measures to avoid a recurrence. (Reuters)
