The Federal Communications Commission announced an agreement with Verizon Wireless, regarding the carrier's usage of hidden tracking technology known as "supercookies."
Verizon was under investigation for using "supercookies," which pertains to hidden bits of code that remained even after the phone users deleted their handset's browsing history. "Supercookies" helped third-party companies assess the customers' browsing habits so they could use targeted ads.
According to the settlement (PDF), Verizon will pay a $1.35 million fine to the FCC. Not only that, but from now on the carrier must deploy a more explicit opt-in policy for consumers. Until now, Verizon used an opt-out policy that left many clients dismayed.
This means that only clients who specifically asked to have "supercookies" installed will be on the list of third-party ads pushing companies. However, Verizon will still maintain its "supercookie" tracking information for customers who connect to Verizon's corporate services. In other words, the FCC agreed to let Verizon use "supercookies" in order to promote its own services and products.
The FCC aims to get more involved in guaranteeing that wireless and broadband companies protect consumers' personal data. The commission's focus comes in the aftermath of net neutrality regulation, which was ratified in 2015. Information from the FCC shows that it has been working on a proposal to adapt privacy regulations for the Internet era.
"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 media in the Unites States and worldwide is boiling in anticipation of the FBI-Apple legal dispute. The Bureau wants Apple to unlock an iPhone belonging to one of the San Bernardino shooters from December last year. In spite of FBI's arguments that this is a one-time only case, Apple underlines that the broader issue of data encryption and individual privacy as we know it is at stake.
Luckily, the Verizon-FCC case is not as loaded.
Browsers regularly use "cookies" to track online habits, such as what sites have been visited and average time spent on them. "Supercookies," on the other hand, are cookies that are crafted so they stick to a device permanently. What is more, they are not as easy to spot as regular cookies and they're more complicated to erase.
Privacy advocates and lawmakers chastised wireless operators that rely on the said technology. Not only are they stealthy, but they could prove a liability for hackers to exploit.
For four years now, Verizon has been using supercookies with the sole purpose of helping push targeted ads. A January 2015 study revealed that this insidious tracking information remained embedded in the handsets and was accessible by third parties. As a direct result, lawmakers notified the FCC and asked it to look into Verizon's practices.
The company claims that it made steps towards customer-oriented policies in the last year. Verizon recently updated its privacy policy and it now informs customers on the use of supercookies, and even allows them to opt out of this tracking.
A spokesman for Verizon recently pointed out that the company offers "clear, complete information" that lets customers take the best decision.
