FCC investigation finds Verizon violated consumer privacy with UIDH use, began practice in late 2012
Verizon Wireless was dinged nearly $1.4 million for its use of so-called “supercookies,” which tracked a customers’ mobile Internet traffic without their knowledge or consent.
The fine, which was levied this week by the Federal Communications Commission, was tied to the use of unique identifier headers as customers’ accessed the Internet from their mobile device, which Verizon Wireless used to identify customers in order to deliver targeted advertisements from the carrier or other third parties. The FCC investigation, which began in late 2014, found Verizon Wireless had begun the practice in late 2012, but did not admit to the practice until early last year.
The carrier initially did not allow customers to opt out of the tracking platform before eventually providing for an opt-out option last March. The FCC noted the practice violated the FCC’s 2010 Open Internet Transparency Rule and Section 222 of the Communication Act.
As part of the settlement, Verizon Wireless said it would notify consumers about its targeted advertising programs and have to obtain an opt-in consent before sharing undeletable identifiers within the company.
“Verizon gives customers choices about how we use their data, and we work hard to provide customers with clear, complete information to help them make decisions about our services,” the carrier said in a statement. “Over the past year, we have made several changes to our advertising programs that have provided consumers with even more options. [This] settlement with the FCC recognizes that. We will continue to give customers the information they need to decide what programs and services are right for them.”
The FCC noted Verizon Wireless initially said third-party advertising companies using the UIDH “were unlikely to use these so-called ‘supercookies’ to build consumer profiles or for any other purpose.” Last January, the FCC cited news reports claiming a Verizon Wireless advertising partner used the platform to restore cookie IDs that users had attempted to clear from their browsers, which went against the customers’ privacy selection.
“Consumers care about privacy and should have a say in how their personal information is used, especially when it comes to who knows what they’re doing online,” said FCC enforcement bureau chief Travis LeBlanc, as part of the settlement. “Privacy and innovation are not incompatible. This agreement shows that companies can offer meaningful transparency and consumer choice while at the same time continuing to innovate. I would like to acknowledge Verizon Wireless’s cooperation during the course of this investigation and its willingness to make changes to its practices for the benefit of its customers.”
Verizon Wireless earlier this year launched its FreeBee sponsored data platform, which allows content providers or advertisers to “sponsor” specific consumer actions on a per-click basis, citing activities like viewing mobile video clips, audio streaming and application downloads.
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