Verizon Fined $1.35 Million; Settles With FCC

By ADAM SWIFT (Patch Staff)

Verizon Wireless was fined $1.35 million as part of a settlement with the Federal Communications Commission this week over the use of hidden tracking technology known as "super cookies."

According to the settlement, Verizon will also have to notify consumers of its data collection program and get permission from users before sharing consumer date with a third party.

The "super cookies" are unique, undeletable identifiers – referred to as UIDH – which are inserted into web traffic and used to identify customers in order to deliver targeted ads from Verizon and other third parties. Even when customers tried to remove regular cookies from their devices, the "super cookies" were left behind.

“Consumers care about privacy and should have a say in how their personal information is used, especially when it comes to who knows what they’re doing online,” said FCC Enforcement Bureau Chief Travis LeBlanc. “Privacy and innovation are not incompatible."

LeBlanc said the settlement shows that companies can offer meaningful transparency and consumer choice while at the same time continuing to innovate.

In December 2014, he FCC began the investigation into whether Verizon Wireless failed to appropriately protect customer proprietary information and whether the company failed to disclose accurate and adequate information regarding its insertion of UIDH into consumer Internet traffic over its wireless network.