The news: A federal appeals court upheld $92 million in fines against T-Mobile and Sprint for illegally selling customer location information (CLI) without proper consent or safeguards.
T-Mobile didn’t dispute the violations but argued that the FCC had overreached its authority and miscalculated penalties. Similar penalties were handed down to AT&T and Verizon, who are also appealing their fines.
Zooming out: The ruling is a reminder of the growing legal and reputational risks around data privacy.
- While fines and penalties can take time to materialize—T-Mobile’s violations date back about six years—they can harm a brand’s reputation.
- T-Mobile’s fines could set a precedent for how courts treat misuse of passive data collection practices like CLI.
Why it matters: Data-driven campaigns that overstep privacy expectations risk not only legal fights but also eroding user trust. Marketers should care because CLI data is often central to targeting strategies.
The days of “ask for forgiveness later” are over as AI and emerging technologies elevate consumer awareness around data privacy—regulators are watching, and so are consumers.
Our take: When building campaigns that use location-based targeting or CLI, marketers should treat consent and transparency as not only legal checkboxes but also strategic imperatives. Brands that clearly communicate how data is collected and used will build trust and better maintain customer loyalty.
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