Boston, MA 09/04/2014 (wallstreetpr) – According to reports published by U.S regulators on Wednesday Verizon Communications Inc. (NYSE:VZ) would have to pay $7.4 million penalty for violating the privacy of its customers. There was an investigation held against the company and results of that investigation showed that it had used the information of its customers for marketing purposes without notifying them in advance.
What’s There in The Investigation:
Recently an investigation held by The Federal Communications Commission found that around 2 million new Verizon Communications Inc. (NYSE:VZ) phone customers didn’t receive privacy notice along with their first bill in the year 2006. Mobile companies send privacy notice to customers that help them in the option out of unnecessary marketing offers by removing their personal information. Although company sent privacy notice at a later date to some of the customers.
According to governmental rules, no mobile company can use the personal information of customers for its personal usage or marketing purposes unless it has got permission from the customer himself. According to Travis LeBlanc, Acting Chief of the FCC’s Enforcement Bureau, “It cannot be accepted that a mobile company uses its customers’ personal information without their knowledge for hundreds of marketing campaigns and promotional offers.”
Once this issue created a buzz around, Verizon Communications Inc. (NYSE:VZ) reported the discrepancy to the FCC on Jan. 18, 2013 saying that only landline customers were affected, and it was unaware about trouble that mobile subscribers had to face. Although FCC later found on the basis of its investigation that the company was completely aware of this fact.
VZ has now accepted its mistake and agreed to send an opt-out notice to every bill so that customers don’t have to suffer from unwanted marketing calls and campaigns. The charge paid by Verizon Communications Inc. (NYSE:VZ) is the largest in the history of FCC over the charges of personal information breaching of telephone customers.