FCC Reviewing Telco Opt-Out Rule
The Federal Communications Commission is reviewing its 1999 rule that allows telecommunications companies to share information about their customers with third parties for marketing purposes.
Under that rule telcos are required to advise customers of their right to opt out of having their proprietary network and other identifying information shared with other firms.
But the attorneys general of 39 states and a number of consumer and privacy groups want to see the opt-out rule replaced with an opt-in requirement.
In comments filed with the FCC, they allege the opt-out rule is not working and that consumer notices about opting out are generally not read because they are unclear. The AGs also claim that companies interpret the lack of consumer response to the notices as implying authorization for information sharing.
The Direct Marketing Association opposes any change in the Rule.
“It is a viable option that can be used to obtain marketing data,” said Jerry Cerasale, senior vice president, government affairs for the DMA.
Cerasale continued that opt-out notices from telecommunications companies are “clear and easily understood.”
The attorneys general counter that the telcos, while they do not share data with competitors, would share customer information with outside firms “for the purpose of jointly marketing products and services unrelated to the customers’ current service selection, and even unrelated to telecommunication services entirely.”
Consumer and privacy groups argue that an opt-in would “ensure that consumers are given some effective means of control over the use of personal information held by others.” The groups include the Electronic Privacy Information Center, American Civil Liberties Union, National Consumers League, and the U.S. Public Interest Research Group.
The agency launched its review late last year as part of its ongoing program of updating its rules. The FCC has not indicated just when the task will be completed or if it will result in a rule change.
