Verizon to Pay Fine for Tracking Users Without Their Knowledge
Verizon will pay a $1.35 million fine over its "supercookie" that the government said followed phone customers on the Internet without their permission. Verizon will also have to get an explicit "yes" from customers for some kinds of tracking.
The supercookies landed their name because they were hard, or near-impossible, to block. Verizon uses them to deliver targeted ads to cellphone customers. The company wants to expand its advertising and media business and bought AOL for its digital ad technology in 2015.
The FCC settlement says consumers now must opt in to letting Verizon share data with a third party. But for data-collection and sharing within Verizon itself, the company can choose to have customers either opt in or automatically do it and give consumers the option to stop it, a less stringent requirement.
The New York company has already changed some practices that critics considered most invasive. In an emailed statement, the company said that the FCC settlement recognizes that it had already made adjustments to its ad programs that give consumers more choices.
Nate Cardozo, a staff attorney at the Electronic Frontier Foundation, a privacy watchdog that had been critical of the supercookies, said the settlement was an "unqualified win" for consumers. "Today's order will mean that other companies contemplating similar involuntary tracking will think twice before proceeding without explicit consumer consent," he wrote in an email.
As well, a letter from a collection of organizations called on the FCC to consider the impact of Verizon's user tracking when it sets the first rules around privacy for broadband providers expected to be announced this month.