Holding tech giants to account: Current penalties for data breaches in the U.S.
Violations of the Data protection are no trivial offense - especially not in the USA! In April, fines of between 7 and 80 million US dollars were imposed on five companies. The serious violations of applicable data protection law that were committed.
- T-Mobile USA: 80,080,000 US dollars (74,701,492 euros) Fine
- AT&T: 57,265,625 US dollars (53,419,426 euros) Fine
- Verizon Communications: 46,901,250 US dollars (53,419,426 euros) Fine
- Sprint Corporation (T-Mobile USA): 12,240,000 US dollars (417,910 euros) Fine
- Cerebral, Inc: 7,087,253 US dollars (650,950 euros) Fine
T-Mobile USA had to pay by far the highest amount. The Fine was issued by the Federal Communications Commission (FCC) on April 17, 2024 for violation of 222 U.S.C. The allegation: the company had failed to protect the location data of its customers. The FCC initially imposed a Fine The FCC imposed a fine of USD 91,630,000, but later reduced this by USD 11,550,000 following comments from T-Mobile. In the end, the FCC and T-Mobile USA agreed on a fine of USD 80,080,000. The FCC's investigation revealed that T-Mobile provided information about the location of customers without their consent. Third had passed on. This violated the protection of privacy enshrined in the Communications Act. Privacy of customers. The conclusion of the US data protection experts is: "This case underscores the need for telecommunications providers to strictly adhere to data protection regulations and protect proprietary customer data".
Source: FCC fine notice
As part of the same investigation, the Federal Communications Commission also imposed a fine of USD 57,265,625 on AT&T on April 17, 2024. AT&T also disclosed its customers' location data without their consent. Consent on Third resold. In addition, the telecommunications company did not adequately protect customer data.
Source: FCC fine notice
As part of the investigation, the Federal Communications Commission also imposed a fine of 46,901,250 US dollars on the telecommunications company Verizon Communications. Verizon Communications also passed on its customers' location information to Third without first obtaining their consent. Furthermore, Verizon Communications did not adequately protect its customers' data. "Wireless carriers have an obligation to protect our location data," said FCC Chairwoman Jessica Rosenworcel in a statement.
Source: FCC fine notice
In addition, the Federal Communications Commission imposed a Fine in the amount of USD 12,240,000 against Sprint Corporation, which is now part of the T-Mobile USA group. Here, too, the investigation by the data protection authority revealed that the company had used its customers' location data without their consent. Consent on Third has passed on. Furthermore, the company had not taken adequate measures to protect its customers' location data.
Source: FCC fine notice
The fifth highest Fine was also imposed in the USA in April. The online health service Cerebral, Inc. accepted a court order restricting the use or disclosure of sensitive consumer data and requiring the company to give consumers an easy way to cancel the service. In addition, the Federal Trade Commission (FTC) imposed a Fine 7 million dollars because the company sold sensitive health and other personal data of consumers for advertising purposes. Third and had not kept its promises regarding an easy termination option. Cerebral allegedly passed on sensitive information from almost 3.2 million consumers for advertising purposes to Third such as LinkedIn, Snapchat and TikTok by using or integrating tracking tools on its website or in its apps. These tracking tools collect data and send it to Thirdso that these Advertisingdata analysis or other services for the owners of the websites or apps.
Source: Decision of the court





