FCC Proposes $20M Fine for Alleged CPNI Violations

The FCC today adopted of a proposed fine of $20 million against Q Link Wireless LLC and Hello Mobile Telecom LLC for apparent violations of FCC rules that require carriers to authenticate customers’ identity before providing online access to Customer Proprietary Network Information (CPNI).

The regulator’s investigation alleged that both companies—which are affiliated mobile carriers—apparently relied upon practices that placed customer information at risk of unauthorized access and disclosure.

According to the regulator, there were apparent violations of three provisions of section 64.2010 of FCC rules: The companies relied on readily available biographical information and account information to control online access to CPNI and put at risk customers’ sensitive personal data. Additionally, the companies also failed to employ reasonable data security standards, placing customers at increased risk for privacy violations and potential misuse of their sensitive personal data.

The proposed action, a Notice of Apparent Liability for Forfeiture, contains only allegations that advise a party on how it has apparently violated the law and which may propose a monetary penalty. Neither the allegations nor the proposed sanctions in the NAL are final, with the accused parties now having a chance to respond.

The potential fine was different from most the FCC has proposed recently, with most directed against illegal robocalls.

“Today’s action is an important step in our commitment to protect the privacy and security of consumer information,” FCC Chairwoman Jessica Rosenworcel said in a prepared statement. “Consumers rely on their carriers to keep their personal information secure, and the Commission must effectively use our tools for enforcing privacy protections. This is why I established the Commission’s first-ever Privacy and Data Protection Task Force, which convenes technical and legal experts from across the agency to coordinate our efforts to use the law to get results.”