FCC Hits LocateCell with Maximum Penalty for Withholding Data
The FCC Thurs. cited data broker LocateCell for “willfully or repeatedly” violating Commission rules by refusing to hand over information the FCC sought through subpoena. The agency issued a $97,500 notice of apparent liability against the company, the highest possible penalty under Commission rules for a nonregulated company. Enforcement Bureau officials said after the meeting that other data brokers have refused to comply with subpoenas and could be subject to similar forfeitures. Enforcement Bureau Chief Chris Monteith said the FCC’s message is clear: “Disregarding a lawfully issued subpoena and therefore compromising our authority… we are not going to tolerate.”
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LcateCell was one of about 40 data brokers that received subpoenas from the FCC asking for additional information. The FCC is still investigating which of the 40 were “effectively served” with the demands. The company received a subpoena last Nov. After asking in Jan. for additional time to respond LocateCell failed to respond by a Feb. deadline, the FCC said.
“Responding to Commission subpoenas is not optional,” FCC Chmn. Martin said. “We expect that subpoenas, as well as all of our requests for information, will be responded to completely and promptly.” Martin urged Congress to allow the FCC to impose higher penalties.
Comrs. Copps and Adelstein urged Martin to complete a rulemaking imposing additional requirements on the FCC for safeguarding CPNI. “Certainly few rights are as fundamental as the right to privacy in our daily lives and few seem to be under such constant attack,” Comr. Copps said: “Even though today’s decision is a step in the right direction, let’s be sure we don’t lose sight of the bigger picture here. Data brokers continue to flout the law, to invade our privacy, and to put each of us at risk.”
“The mere fact that these records have been so readily available, even though telephone companies are required to have firewalls in place to protect consumers’ private information, really raises serious questions about the mechanisms that are in place to safeguard the confidentiality of consumer information,” Adelstein said.