New FCC Rules Increase Customer Consent Requirements

April 3, 2007

The FCC has drafted new rules prohibiting phone companies from releasing customer records over the phone without a password.

In large measure, the rules are an effort to crack down on pretexting.

In the same rulemaking, the FCC is requiring carriers to immediately tell their customers when there are changes to their accounts- such as an address change, attempt to change a password, or even an opening of an online account for bill-paying purposes.

The FCC order also requires carriers to notify customers and law enforcement officials if there's been an unauthorized disclosure of phone records. Carriers will also be required to receuve "explicit consent" from a customer before disclosing phone records.

"The unauthorized disclosure of consumers' private calling records is a significant privacy invasion," FCC Chairman Kevin Martin said. "Compliance with our consumer protection regulations is not optional for any telephone service provider. We need to take whatever actions are necessary to enforce these requirements to secure the privacy of personal and confidential information of American customers."