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U.S. telco must notify users, obtain consent for its targeted advertising tech.
Verizon late on Monday agreed to pay US$1.35 million to settle a Federal Communications Commission (FCC) investigation into its targeted advertising practices.
The U.S. telco uses unique identifier headers (UIDHs), also known as ‘supercookies’ to track customers’ Web-browsing activity in order to serve personalised adverts.
The FCC investigation centred on whether Verizon was violating its Open Internet Transparency Rule and Section 222 of the Communications Act for failing to appropriately protect customers’ proprietary information.
The investigation found that Verizon was using UIDHs without its customers’ knowledge or consent. Advertisers were also found to be using supercookies to track consumers who had explicitly opted out of using normal cookies.
"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, in a statement on Monday.
As well as a financial settlement, Verizon must notify its customers about its use of supercookies and obtain opt-in consent before sharing UIDHs within Verizon and with third parties.
"Privacy and innovation are not incompatible. This agreement shows that companies can offer meaningful transparency and consumer choice while at the same time continuing to innovate," LeBlanc said.
"We would like to acknowledge Verizon Wireless’ cooperation during the course of this investigation and its willingness to make changes to its practices for the benefit of its customers," he said.
