The U.S. Federal Communications Commission has proposed fining AT&T Inc. $100,000 for failing to file an annual report detailing its compliance with the FCC's customer privacy-protection rules.
The AT&T corporation failed to hand in a report on time outlining its compliance with Customer Proprietary Network Information (CPNI) rules, which prohibit telecommunication companies from selling private information about their clients to third parties.
The relatively large fine suggested by the FCC reflects the recent public outcry that followed revelations that a number of small firms were selling private telephone records over the Internet. The proposed fine is for the late CPNI report, not because AT&T sold customer data, but the FCC notice of the proposed fine notes the recent concerns about the sale of telephone customers' personal data.
ATA&T announced that it is preparing the corresponding report. The corporation also emphasized that it used special systems and procedures to protect the confidential information of its clients. The main reason for the document not being ready, however, is that a copy of the officer's certificate attesting to those CPNI procedures has not been located. The company says it is rectifying the mistake and is working with the FCC to ensure full compliance.
This is just the latest incident in which the regulatory bodies in the U.S. have shown they are taking a tougher line regarding privacy laws. Last week ChoicePoint was fined $15 million for a data leak that involved the personal details of over 150,000 people. The business community saw the judge's decision as a warning from the Federal Trade Commission to other companies that confidential information leaks will be dealt with harshly.
Now the FCC has fired a similar warning shot. The threatened fine perhaps wouldn't have been so large if the high-profile case of U.S. presidential candidate Wesley Clark had not hit the headlines in recent weeks. The scandal surrounding the sale of private telephone records erupted after a journalist explained how he bought the general's incoming and outgoing call records for less than $100.
Today the protection of private data is becoming more and more serious for businesses. Companies no longer just risk spoiling their reputation or losing customers; they now also face legal proceedings and huge fines from regulatory bodies.
“The people at the FCC are acting very decisively because they feel that society and politicians support stringent measures to protect private data. The public are fed up of all the shocks: millions of credit card leaks, telephone records being sold on every corner. America was the first to be affected by all these information problems, and now the rest of the world has all this to look forward to,” says Denis Zenkin, marketing director at InfoWatch.
Source: ComputerWorld
