The settlement resolved separate issues related to AT&T privacy practices and safeguards. In the first issue, the FCC proposed a $100,000 fine because, it claimed, AT&T “fail[ed] to prepare and maintain annual certifications of procedures for protecting the privacy of consumer records.” (“AT&T to Pay $550,000 to End 2 Regulatory Matters With FCC,” Associated Press, July 11, 2006). In the second issue, the FCC began an investigation into SBC Communications Inc., AT&T’s predecessor entity, in July 2005. According to the company’s spokesman, the company discovered that it had failed to send privacy notices to new customers that provided the customer with the opportunity to opt-out of future marketing campaigns. The spokesman went on to say that the company discovered the error, reported it to the Commission, and took steps to fix it. (“AT&T to Pay $550,000 to End 2 FCC Issues,” Associated Press, July 11, 2006).
As part of its agreement with the FCC, the company agreed to strengthen its privacy practices.
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