According to the Federal Communications Commission, it has reached a settlement with Verizon Wireless on Monday for its use of "supercookies." These cookies are a part of a hidden tracking technology used in target advertising without the knowledge and permission of customers.
The communication company was fined $1.35 million as part of the settlement. It is also required to inform its customers about its data collection program, and asked to get their permission before sharing any of their personal information with third-party companies.
Although the fine is small, it drew attention from a wide spectrum of telecom industry companies giving them a taste of the ambitious privacy regulations of the F.C.C. It is projected that this agency will consider first-time privacy rules very soon.
These rules will affect internet service providers and may include regulations requiring for permission to be granted by customers before wireless and fixed broadband providers can track their online behavior.
According to the F.C.C., Verizon began to use tracking technology in 2012 without properly notifying its customers. It did so only in late 2014 after its practice was exposed in the open.
As an illustration, the "supercookies" used by the communication giant can kick up ads from 1-800-Flowers.com Inc. to men aged 25 to 44 who use Android phones with incomes greater than $75,000 in advance of Valentine's Day in 2014.
In the Monday settlement, Verizon agreed to inform customers regarding its targeted-advertising programs and to get their permission before sharing the 'supercookie' information internally, or with third party companies.
"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 Travis LeBlanc, FCC Enforcement Bureau Chief.
"The Verizon supercookies issue has been one of the big poster children for why you need to worry about ISPs tracking their customers and why you need rules for ISPs," said Harold Feld, a legal analyst at Public Knowledge, a non-profit media advocacy group.
