The Federal Communications Commission (FCC) has passed a new slate of online privacy rules.
Here are seven things to know about the conversation that concluded today:
- The new laws were passed thanks to a 3-2 vote on Thursday.
- Internet providers such as Comcast Corporation (NASDAQ:CMCSA), AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ) and T-Mobile US Inc (NASDAQ:TMUS) have to obtain explicit consent from their customers to use or share their behavioral data with third parties, such as marketing firms.
- The FCC added that other consumer information that is protected includes health data, financial information, Social Security numbers, email content and other digital messages.
- An opt-in rule is allowed by the FCC for other types of information. However, other pieces of data such as a customer’s IP address and device identifier do not require the opt-in requirement. Providers have to tell consumers what data they are collecting and why.
- Providers can still use sensitive data for other purposes, including when they need to use the data for their own purposes, including to provide broadband service.
- When a data breach occurs, internet service providers have to inform consumers within 30 days of a breach occurring. If a breach affects at least 5,000 consumers, the FBI, Secret Service and FCC have to be informed of this.
- Pay-for-privacy schemes are still in place, meaning that there are Internet plans that give customers more privacy if they pay more. One such example was AT&T’s Internet Preferences program, which lowered prices when consumers allowed their Internet information to be tracked.
CMSA shares dipped 1.9% Thursday, while VZ stock gained 2%. T shares grew 0.3% and TMUS stock gained a fraction of a percentage.
