Telecom Lobbying Kills Your Internet Privacy

By Steven McKean · May 8, 2017 3 min read

Internet Privacy

How telecom lobbying put your personal data up for sale

Congress and the President repealed FCC rules that would have stopped ISPs from selling your personal data without permission. Here’s how millions in telecom lobbying made it happen.

1 The Privacy Rules That Got Repealed

Last month, President Donald Trump signed a bill repealing rules that had been passed by the Federal Communications Commission (FCC) under the Obama administration to protect the privacy of Internet users.

Those rules would have required companies to get customers’ permission before selling their personal information to marketers. Such data as health and financial information, geographic location, apps used, and websites visited are a literal goldmine to marketers who want to pinpoint potential customers for their wares.

Republicans and industry officials complained that these rules were unfair, because rivals such as Google and Facebook aren’t bound by them. As Sally Greenberg, Executive Director of the National Consumers League, wrote recently in The Huffington Post, the comparison is false. “It is far easier for consumers to simply not use services like Facebook or Google than it is for them to avoid using an Internet service provider (ISP).”

2 The Money Behind the Repeal

The repeal of these rules should come as no surprise given an article in the newspaper The Hill, which last month reported that three of the largest telecom companies—AT&T, Verizon, and Comcast—collectively spent a total of $11.2 million during the first three months of the year, according to disclosure forms filed to Congress.

Of the three telecom giants, AT&T spent the most during the period, the paper said, handing out $4.6 million on lobbying. Comcast and Verizon spent $3.7 million and $2.9 million, respectively.

“These guys spend a fortune in D.C., they’re very plugged in on the Hill and this was clearly their priority,” Craig Aaron, president of the consumer-advocacy group Free Press, told the Associated Press.

According to the money-influence research group Center for Responsive politics, the overall lobbying total for telecom and telephone companies in 2016 surpassed $123 million, making them one of the highest-spending lobbying groups in Washington. The opposition—various privacy and consumer groups—spent just over $1 million.

Speaking to the Associated Press, Dallas Harris, a policy fellow at Public Knowledge which organized against the privacy repeal, said, “It’s the classic story where the side with more money has more influence here.”

3 Why Your Data Is Worth Billions

Indeed it is. Even though the Obama-era rules had not yet taken effect, The New York Times wrote, “The new FCC rules would have given consumers stronger privacy protections—without such restrictions, Internet providers may decide to become more aggressive with data collection and retention.”

Your personal information is worth literally billions to ISPs and other sites (such as Google and Facebook) who collect it, and to the advertisers who purchase it. How fair is it that not only do you not make a dime off your own data—which, by the way, you pay them to collect (through your monthly ISP bill)—but that you can’t even control who gathers it, compiles it, and sells it?

4 The Hacking Risk Nobody Mentions

As if these issues weren’t enough to catch your attention, what about the hacking issue? Sally Greenberg reminded readers of the recent Yahoo! data breach that compromised as many as 1.5 billion users’ names, email addresses, telephone numbers, encrypted and unencrypted security questions and answers, dates of birth, and encrypted passwords. “As bad as those breaches were, they only affected the users of one online service,” she wrote. “Now imagine what the fallout would be if a similar hack had occurred at a major ISP, which now has the ability to collect practically any data sent over its networks.” Imagine, indeed.

Billshark will continue to highlight such issues, because our whole purpose is to look out for the consumer—meaning you!

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Frequently Asked Questions

What privacy rules did the FCC repeal?

President Donald Trump signed a bill repealing FCC rules passed under the Obama administration to protect the privacy of Internet users. Those rules would have required companies to get customers' permission before selling their personal information to marketers, including health and financial information, geographic location, apps used, and websites visited.

How much did telecom companies spend on lobbying?

According to The Hill, AT&T, Verizon, and Comcast collectively spent $11.2 million during the first three months of the year. AT&T spent the most at $4.6 million, followed by Comcast at $3.7 million and Verizon at $2.9 million. In 2016, telecom and telephone companies' overall lobbying total surpassed $123 million.

Why did the industry argue the rules were unfair?

Republicans and industry officials complained the rules were unfair because rivals such as Google and Facebook aren't bound by them. Sally Greenberg of the National Consumers League called the comparison false, noting it is far easier for consumers to avoid Facebook or Google than to avoid using an Internet service provider.

Why is my personal data so valuable to ISPs?

Your personal information is worth literally billions to ISPs and sites like Google and Facebook who collect it, and to the advertisers who purchase it. You don't make a dime off your own data, you pay ISPs to collect it through your monthly bill, and you can't control who gathers, compiles, and sells it.

What hacking risk did consumer advocates warn about?

Sally Greenberg pointed to the Yahoo! data breach that compromised as many as 1.5 billion users' names, email addresses, phone numbers, security questions, dates of birth, and encrypted passwords. She warned the fallout would be far worse if a similar hack hit a major ISP, which can now collect practically any data sent over its networks.

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Congress and the President repealed FCC rules that would have stopped ISPs from selling your personal data without permission.

Those rules would have required companies to get customers’ permission before selling their personal information to marketers.

Republicans and industry officials complained that these rules were unfair, because rivals such as Google and Facebook aren’t bound by them.

The repeal of these rules should come as no surprise given an article in the newspaper The Hill.

Of the three telecom giants, AT&T spent the most during the period, the paper said, handing out $4.6 million on lobbying.

Indeed it is.

Your personal information is worth literally billions to ISPs and other sites (such as Google and Facebook) who collect it, and to the advertisers who purchase it.

As if these issues weren’t enough to catch your attention, what about the hacking issue?.

Billshark will continue to highlight such issues, because our whole purpose is to look out for the consumer—meaning you!.

President Donald Trump signed a bill repealing FCC rules passed under the Obama administration to protect the privacy of Internet users.

According to The Hill, AT&T, Verizon, and Comcast collectively spent $11.2 million during the first three months of the year.

Republicans and industry officials complained the rules were unfair because rivals such as Google and Facebook aren't bound by them.

Your personal information is worth literally billions to ISPs and sites like Google and Facebook who collect it, and to the advertisers who purchase it.

Sally Greenberg pointed to the Yahoo!.

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Our experts handle providers for customers and share updates throughout the process.

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1 The Privacy Rules That Got Repealed.

2 The Money Behind the Repeal.

3 Why Your Data Is Worth Billions.

4 The Hacking Risk Nobody Mentions.

Frequently Asked Questions.

What privacy rules did the FCC repeal?.

How much did telecom companies spend on lobbying?.

Why did the industry argue the rules were unfair?.

Why is my personal data so valuable to ISPs?.

What hacking risk did consumer advocates warn about?.

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Telecom Lobbying Kills Your Internet Privacy

1 The Privacy Rules That Got Repealed

2 The Money Behind the Repeal

3 Why Your Data Is Worth Billions

4 The Hacking Risk Nobody Mentions

Frequently Asked Questions

What privacy rules did the FCC repeal?

How much did telecom companies spend on lobbying?

Why did the industry argue the rules were unfair?

Why is my personal data so valuable to ISPs?

What hacking risk did consumer advocates warn about?

Related Blog Posts

Internet Monopoly: How It Affects Your Choices & Bills

Consumer Rights Under Threat: Mega-Corporations Win

Comcast & Charter Join Forces: What It Means for Wireless

Protect Your Data: Why Online Privacy Costs More

AT&T Internet Speed Test & History: How U-verse Evolved

Why Verizon Is Losing Customers: Smart Solutions

Net Neutrality's End: What It Means for Your Internet

3 Common Medical Debt Mistakes to Avoid

Medical Bills: It's Hard to Keep Your Head Above Water

Save on the Bills You Just Read About

Telecom Lobbying Kills Your Internet Privacy page context