Citing a lack of cooperation, the FCC yesterday proposed fining the Locatecell company $97,500 for failing to provide information about how it got the private consumer telephone records that its Web site offered for sale.
On January 20th, 2006, the FCC issued a subpoena to Locatecell and another data broker, DataFind.org, demanding documentation of its practices. Ten days later the Commission warned AT&T and Allitel that they may not have been in compliance with protocols necessary to guard the personal records of their customers, therefore liable for penalties.
Locatecell, which was based in Missouri, is no longer in business. The states Attorney General Jay Nixon shut the company down with a court order eleven days after the FCCs subppoena. Selling or leaking "Customer Proprietary Network Information" (CPNI) is against the law, specifically against Section 222 of the Communications Act.
On July 7th, AT&T settled its data security dispute with the FCC, agreeing to pay $550,000 in fines.
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