Judges Challenge T-Mobile’s Claim: Selling Location Data Without Consent Is Illegal

Carriers Defend Against FCC Fines

Instead of denying the allegations, T-Mobile and Sprint argued that the FCC exceeded its authority. However, a recent appeals court ruling backed the FCC’s actions:

Sprint and T-Mobile do not deny the facts. They claim these facts do not violate the law and argue that the FCC misinterpreted the Communications Act and miscalculated the penalties, also stating they were denied a jury trial. The court found their arguments unconvincing and denied their petitions for review.

T-Mobile faces an $80.1 million fine, while Sprint must pay $12.2 million. Following its acquisition of Sprint in 2020, T-Mobile reported impressive service revenue of $17.4 billion and a net income of $3.2 billion in the most recent quarter.

The FCC, led by Republican Chairman Ajit Pai at the time, first suggested these fines in 2020. The vote to finalize them in 2024 was tight, at 3-2, with dissenting votes from Republicans Brendan Carr and Nathan Simington. Carr is now the chairman of the FCC.

T-Mobile mentioned they are “currently reviewing the court’s action” but did not provide further details. They may pursue an en banc review with a larger panel of the appeals court or request the Supreme Court to take on the case. Meanwhile, AT&T and Verizon are also fighting their fines in federal court. AT&T faces a $57.3 million fine, while Verizon’s amounts to $46.9 million.

The FCC found that these major carriers disclosed customer location information without consent, sharing data with a Missouri sheriff through a service called Securus, which helps track individuals for correctional facilities. This practice has raised significant privacy concerns, leading to ongoing discussions about data security and consumer rights.

In response, privacy advocates have stressed the importance of stricter regulations to protect consumer data. According to a recent survey by Pew Research, over 81% of Americans feel they have little control over their online data. As technology continues to advance, the conversation about privacy and consent will become even more crucial.

As the legal battles continue, it will be interesting to see how these developments impact the broader telecom industry and consumer trust moving forward.

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