FCC Adopts Rules on How Phone Companies Share Customer Information

The FCC last week adopted rules resolving how telecommunications companies share and market customer proprietary network information (CPNI). CPNI includes almost all individually identifiable information regarding customers' phone use including to what services they subscribe, and to whom, when and where they call.

Under the rules, carriers using or disclosing CPNI to affiliates, joint venture partners or third-party agents that provide communications-related services must notify customers, but they are not required to get customers' prior permission -- the “opt-out” approach. If, however, carriers plan to disclose CPNI to unrelated third parties or affiliates that do not provide communications-related services, they must get customers' permission before the disclosure can occur -- the “opt-in” approach.

The FCC adopted an FNPRM inviting comment on enforcement issues and issues relating to customer information of carriers that go out of business or seek bankruptcy protection. Commissioner Copps dissented regarding the "opt-out" portion of the order. He believed the Commission should have adopted a completely "opt-in" approach.

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