FCC greenlights customer data sharing

The FCC adopted rules yesterday that would allow carriers to share customer proprietary network information (CPNI) with affiliated communications companies without first obtaining customer consent.

The rules are meant to protect consumers while simultaneously protecting carriers’ First Amendment rights to communicate with their customers. Although three of the four Commissioners agreed with the ruling, all four stressed that more rules are necessary to better protect consumers. The FCC’s lone Democrat, Commissioner Michael Copps, offered the only dissenting opinion, denouncing only the opt-out portion of the decision.

The dual opt-in/opt-out rules shed some light on the nature of approval required before a carrier can use or disclose customer information. Carriers that want to use CPNI or disclose this information to their communications-related affiliates must notify customer and provide opt-out opportunities. In order to disclose CPNI to non-communications related third parties, carriers must obtain express customer consent, or opt-in approval.

While Copps agreed with the rule prohibiting carriers from selling or disclosing personal information to unaffiliated third parties without customer opt-in approval, he said that the Commission’s opt-out rule framework fell short of protecting sensitive customer information.

“It does not preclude companies in all instances from selling to the highest bidder personal and detailed information about who Americans call, when they call and how long they talk, as long these companies use it for some ‘communications-related’ purpose and have some undefined and murky affiliation, agency relationship, or partnership with the phone company,” Copps said in a statement.

FCC Chairman Michael Powell said that he remains committed to vigilance on the issue and urged states and other parties to revisit the ruling based on state specific facts.

“States continue to be uniquely positioned to assess the proper scope of CPNI use and may adopt more stringent notification requirements where those can be squared away with the First Amendment,” he said in a statement.

Customers in Washington state complained about Qwest’s opt-out program in January of this year, which prompted the company to cease sharing its CPNI until the FCC made a ruling on the matter. The complaint asserted that Qwest misled its customers with regard to its opt-out opportunities and alleged problems with the carrier’s toll-free number, which was created to let them opt out of the program.