If you thought your carrier kept your data safe, think again. The U.S. Court of Appeals for the District of Columbia Circuit has upheld a $92 million fine against T-Mobile and its former subsidiary Sprint for selling customer location data without consent. The case has stirred debate about privacy, corporate responsibility, and how regulators enforce rules against telecom giants.
What’s Happening & Why This Matters
The ruling stems from a 2023 Federal Communications Commission (FCC) decision. The FCC fined T-Mobile, Verizon, and AT&T nearly $200 million for selling customer location data to third-party aggregators. These aggregators resold the information to companies offering location-based services, creating a risky chain of data misuse.
T-Mobile argued that the FCC misapplied the Communications Act and violated its rights under the Seventh Amendment by not granting a jury trial. The appeals court dismissed those claims, stating:
“Neither denies what happened. Instead, they argue that the undisputed facts do not amount to a violation of the law.”
The judges concluded that the law requires carriers to protect customer proprietary network information (CPNI), including location data. By continuing to sell that information until 2019, Sprint and T-Mobile violated the Act.
The court also noted that T-Mobile had the option to request a jury trial. However, they waived it when choosing to pursue direct judicial review.
The FCC’s ruling extended beyond T-Mobile. AT&T received a $57.3 million fine, and Verizon was fined $46.9 million. In April, the Fifth Circuit overturned AT&T’s penalty, but Verizon’s case remains undecided. For now, T-Mobile stands as the cautionary example that regulatory bodies can and will enforce privacy laws against carriers.
Privacy advocates argue that these practices erode trust. Electronic Privacy Information Center (EPIC) has warned that the reselling of location data exposes users to risks. These include stalking, fraud, and government misuse. The case illustrates how deeply personal data can be mishandled when profit outweighs protection.
TF Summary: What’s Next
T-Mobile’s loss in court signals more vigorous enforcement of data privacy rules in the telecom sector. Verizon’s pending case could bring another twist, but the message is clear: regulators expect carriers to secure user data, not sell it. With data protection under more scrutiny than ever, customers will keep a closer eye on how their carriers handle sensitive information.
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