FCC fines largest wireless carriers for sharing location data
Scale and Meaning of the Fines
- Many see the ~$200M total as negligible vs carrier revenues and profits; likened to a “cost of doing business.”
- Others stress the jump from $0 to $200M as important precedent and institutional “muscle-building” for future, larger fines.
- Back-of-envelope comparisons: fines are tiny fractions of annual revenue/profit and can be earned back in about a day of combined profits.
- Disagreement over whether shareholders care: some say they’ll accept fines if profits from data sales vastly exceed penalties; others note repeated fines and bad press can still matter.
Deterrence, Enforcement, and Law
- Debate on whether first-time fines should already be painful, since data misuse cannot be “un-shared.”
- Some call for fines as a percentage of revenue or 10x profits from the unlawful activity, and even for revoking corporate charters.
- Stronger proposals include personal liability for executives/boards and even (semi-serious) corporal punishments.
- FCC is limited to civil penalties and cannot imprison anyone; criminal action would require DOJ.
- Several comments argue US regulators (FCC, SEC, etc.) are under-resourced, politically gridlocked, and slow, making enforcement weak.
Privacy, Consent, and Data Markets
- Widespread anger that carriers sold highly sensitive location data, often to shady intermediaries (e.g., bounty hunters, prison-tech firms).
- Some argue transparency and user control (seeing who has your data, chain-of-custody logs, easy blocking) would curb abuse.
- Others say GDPR-style consent shows transparency alone is insufficient due to dark patterns and user fatigue.
- Suggestions:
- Make such data sharing strictly opt-in with real benefits to users—or ban location data sales entirely.
- Require insurance and “make whole” remedies for harms from data misuse or leaks.
- Treat changes to terms that expand data use as new contracts requiring explicit, non-dark-pattern consent.
Data Ecosystem and Technical Aspects
- Location data is bought very cheaply per user but used in powerful aggregate analytics (hedge funds, the Fed, etc.).
- Government agencies and law enforcement reportedly buy commercial location data, sidestepping warrants.
- Carriers can obtain GPS-level precision (not just tower-based) and can remotely prompt phones to report location, nominally for 911 but viewed with suspicion.
- MVNOs riding on big-three networks are assumed to inherit the same privacy problems.
User Responses and Broader Cynicism
- Some adopt extreme personal privacy practices (cash, airplane mode, offline media, blocking infrastructure) but acknowledge limits (healthcare, payroll).
- General sentiment: without stronger laws, aggressive enforcement, and possibly structural changes, fines like these will not meaningfully change carrier behavior.