Pressure Building on Hill for Cell Phone Bill
Senate Commerce Committee Chmn. Stevens (R-Alaska) wants to move “as quickly as possible” to hearings on legislation to guard consumer phone record privacy, he told media Tues. after a hearing on broadcast flag legislation. Stevens’ statement came as Verizon Wireless filed suit in N.J. against owners of data brokering firm Locatecell.com. And in several states attorneys gen. are moving against data brokers for improperly selling cell and other phone records, as the FCC and FTC run their own investigation (CD Jan 24 p1).
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“This is one of those issues that should be right up front,” Stevens said: “We're working with [House Commerce Committee] Chmn. Barton… we've been trying to meet with the FCC.” Barton has said he plans to introduce a bill when the House reconvenes Jan. 31. So have other members.
“We're going to ask Sen. Allen to chair the effort in the consumer subcommittee,” Stevens said. That way, the hearing could occur while the full panel deals with a slate of already scheduled hearings on telecom, the chairman said. Meanwhile, House Commerce Committee members asked the FCC to provide more information on sale of consumer phone records. “Americans remain vulnerable to intrusive privacy incursion in their most personal records,” said Rep. Markey (D-Mass.).
The letter asks the agency for copies of the latest annual certifications of the 5 largest wireline and the 5 largest wireless firms and asks the agency to respond by Jan. 30. “We are eager to know when the Commission will complete its review of the record and determine which actions should be taken in response to this petition,” said Markey, Barton, Ranking Member Dingell (R-Mich.) and Telecom Subcommittee Chmn. Upton (R-Mich.).
Stevens wouldn’t comment on a cell phone data protection bill introduced last week by Sen. Schumer (D-N.Y.) (CD Jan 19 p5), because Schumer serves on the Senate Judiciary Committee. Schumer’s bill has support from consumer groups including MoveOn.org, which said it has collected 39,000 signatures online backing the bill. Verizon Wireless and T-Mobile also have endorsed the bill.
Verizon Wireless will “continue litigating aggressively” against outfits that get and sell private customer data, Gen. Counsel Steven Zipperstein said: “We applaud the recent focus on these issues from public officials, privacy advocates and law enforcement.” T-Mobile and Cingular also have sued firms that sell cellphone records.
Attorneys gen. in at least 3 states aren’t waiting for the FCC or Congress to act, suing in state court data brokers that dealt in phone call records. Suits have been underway since Fri. in Ill., Fla. and Mo., with more states expected to act.
Ill. was first, with Attorney Gen. Lisa Madigan (D) suing Fla.-based First Source Specialists Inc. for violating state bans on consumer fraud and deception. Filed Fri. in Sangamon County Circuit Court, the suit seeks $50,000 per violation and wants the court to run the firm out of Ill. First Source has operated Locatecell.com, datafind.org, celltolls.com and other suits. Madigan’s complaint alleges the company’s operatives duped carriers into supplying call records by posing customers or phone company employees, and its clients by claiming the records it sold them were obtained legally.
First Source also faces legal action in its home state of Fla., where Attorney Gen. Charles Crist (R) Tues. is suing the firm in Leon County Circuit Court. He alleges violations of state consumer protection, trade practice and civil conspiracy laws. The suit seeks civil fines and injunctions requiring the company to stop doing business in Fla. and surrender all call records in its possession. The suit’s particulars echo the Ill. action. Crist called traffic in call records “beyond an outrage and is a gross invasion of privacy. Citizens have a right to expect their personal telephone records won’t be used as a cash cow by a 3rd party.” Crist said his office worked with the Fla. PSC on a case in which PSC workers were able to obtain call records without hindrance, simply by supplying a phone number.
In Mo., Attorney Gen. Jay Nixon (D) sued First Source and a 2nd data broker, Data Find Solutions, and their principals for violating state consumer protection laws with false claims that it’s legal to obtain, possess and sell phone users’ call records. The allegations in Nixon’s suit, filed Mon. in Cole County Circuit Court, adhere to a pattern that is becoming standard. Nixon wants the firms out of Mo., plus a $1,000 fine per offense, restitution to affected phone users plus 10% to the state and court and investigation costs.
State lawmakers are taking action, too. Two bills in the Ill. legislature would ban traffic in call records, making violations civil trade practice offenses under SB- 2977 or criminal misdemeanors under SB-2486. In Fla., state Sen. Dave Aronberg (D) and state Rep. Tim Ryan (D) said they plan to file a bill against call record trafficking in their chambers for the 2006 session convening Mar. 7. In N.J., state Rep. David Mayer (D) said this week he will introduce a bill to make theft and unauthorized sale or purchase of phone records a criminal offense. He said call logs should have the same legal protection as financial and medical records. Other N.J. lawmakers are developing bills. N.J. Gov. Jon Corzine (D) said he backs state curbs on sale of phone call records but hasn’t endorsed any specific approach.