A U.S. federal appeals court has ruled that Verizon must pay a $46.9 million penalty for unlawfully selling customers’ real-time location information. The decision closes the door on Verizon’s argument that its practices were legal, reinforcing the Federal Communications Commission’s authority to regulate privacy in the wireless industry.
Why the Fine Was Issued
In April 2024, the Federal Communications Commission (FCC) announced nearly $200 million in fines against several major mobile carriers for giving outside companies access to sensitive location data. These firms then passed the information to other parties, including bail-bond services and bounty hunters. According to regulators, this exposed consumers to significant risks and demonstrated a failure by carriers to adopt basic safeguards, even after repeated warnings. Verizon’s share of the fines was $46.9 million, which it sought to challenge in court.
Verizon’s Legal Challenge
The company argued before the U.S. Court of Appeals for the Second Circuit that device-location records should not fall under the category of “customer proprietary network information” protected by Section 222 of the Communications Act. This provision requires carriers to keep certain customer data private. Verizon claimed that location details were not covered by this rule and that the FCC had exceeded its powers by penalizing them.
The judges disagreed. They ruled that location data is precisely the kind of personal information Congress intended to protect, and that the FCC acted well within its legal authority. The court also found no violation of Verizon’s constitutional rights, firmly upholding the fine.
Other Rulings in Similar Cases
This ruling is not an isolated one. Earlier, another appeals court upheld a $92 million fine against T-Mobile for comparable violations, rejecting the carrier’s claim that selling location data was lawful. However, in a separate case, AT&T succeeded in overturning a $57 million penalty after a different appeals court raised concerns over how the FCC imposed the fine. These mixed outcomes illustrate the unsettled but intensifying debate over corporate rights, regulatory authority, and consumer privacy.
Implications for Consumers and the Industry
Privacy advocates have welcomed the latest decision, arguing that it sends a clear message: carriers cannot profit from sharing location information without explicit user consent. Experts warn that without strict oversight, telecom companies could continue searching for loopholes to monetize sensitive customer data.
For the FCC, the ruling strengthens its hand in future enforcement actions, confirming that it can hold carriers accountable when they put consumers at risk. Verizon, however, has indicated that it may continue to fight the ruling, setting the stage for further legal battles.
The decision cements a broader shift toward tougher privacy protections in the United States. It is expected to shape industry practices, influence how telecom companies manage data, and push lawmakers to advance stronger nationwide privacy rules.
