On November 5, 2015, the Federal Communications Commission Enforcement Bureau announced a $595,000 settlement agreement with Cox Communications, Inc. to resolve an investigation into whether the company failed to properly protect its customers’ personal information when electronic data systems were breached in August 2014. According to the FCC, Cox exposed the personal information of numerous customers and failed to report the breaches through the Commission’s established breach-reporting portal. This is the third FCC data security settlement this year. In July, the FCC settled an investigation into TerraCom Inc. and YourTel America Inc.
In its recent Open Internet Order (“Order”), the U.S. Federal Communications Commission (“FCC”) determined that broadband Internet access services are appropriately classified as common carrier “telecommunications services” under the Telecommunications Act of 1996. In doing so, the agency established itself as the primary U.S. data privacy and security regulator for those services and triggered additional requirements under the Act. It also promised a future rulemaking that could result in a sea change in how ISPs and their business partners interact with consumer data. Although the decision is widely expected to
The U.S. Federal Communications Commission (FCC) recently issued a Notice of Apparent Liability for Forfeiture proposing a $10 million penalty against TerraCom, Inc. and YourTel America, Inc. for allegedly violating laws protecting consumers’ personal information. Specifically, the FCC alleged that the companies placed the personal data of up to 300,000 consumers at risk by storing Social Security numbers, names, addresses, driver’s licenses, and other proprietary information (PI) on unprotected Internet servers that “anyone in the world could access.” Read More: FCC Announces $10 Million Proposed Forfeiture Over Data Security Practices