Verizon racks up $1.35M fine for violating consumer privacy - CNET

How much does your privacy cost? A cool $1.35 million, according to the Federal Communications Commission.

On Monday, the Federal Communications Commission said it had reached a deal with Verizon over the company's use of a technology that allowed marketers to track customers' web browsing so they could provide more targeted advertising. The so-called supercookies were hidden bits of code that couldn't be easily erased when consumers cleared their browsing history.

As part of the agreement, Verizon will pay the $1.35 million fine and shift from an opt-out policy to a more explicit opt-in policy for consumers. Now it will only share "supercookie" data with third parties if customers have decided to participate. The company will still be able to use the "supercookie" tracking information when customers connect to Verizon's corporate services to market its own services to its customers.

The settlement with Verizon comes as the FCC prepares to take a more active role in consumer privacy by making sure broadband and wireless companies safeguard consumers' personal data. While the Federal Trade Commission has historically been the primary watchdog for online privacy, the FCC is preparing to take on this role following the passage of Net neutrality regulation a year ago. The agency is in the midst of preparing a proposal that will outline how the privacy regulation will be adapted for the Inteet age.

"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," FCC Enforcement Bureau Chief Travis LeBlanc said in a press release.