FCC imposes pretexting rules.

• Author: Swartz, Nikki
• Position: UP FRONT: News, Trends & Analysis

On the heels of the U.S. Congress enacting legislation to make pretexting --impersonating an individual to gain access to their personal information without their consent--illegal, the Federal Communications Commission (FCC) has enacted its own rules to further protect consumers.

The FCC issued an order requiring telephone and wireless providers to adopt additional safeguards to protect customers' personal information and call records from being disclosed to unauthorized individuals. And, perhaps more important, the FCC order would turn the current "opt-out" data-sharing model on its head--prohibiting phone providers from releasing sensitive personal data without customer consent, as opposed to disclosing the customer's information unless he or she formally instructs the provider otherwise.

"The former 'opt-out' approach to customer consent, whereby a carrier may disclose a customer's phone records provided that a customer does not expressly withhold consent to such use, shifted too much of the burden to consumers, and has resulted in a much broader dissemination of consumer phone records;' FCC Chairman Kevin Martin said in a statement. "The 'opt-in' approach adopted in this order clearly is supported by the record, is consistent with applicable law, and directly advances our interest in protecting customer privacy."

Specifically, the FCC order prohibits carriers from releasing- over the phone or online--sensitive personal data, such as call detail records, unless the customer provides a password. However, the new rules do not necessarily apply in the case of business customers, depending upon the contract between each organization and provider.

Phone companies, including wireless, fixed-line, and voice-over-Internet protocol providers, also must...