For failing to protect customers' calling records

Mar 29, 2007 14:01 GMT  ·  By

The FCC is proposing a $100,000 fine against wireless carrier Amp'd mobile as well as other two companies for failing to protect consumer's personal calling records from thieves. This wouldn't be the first time, as FCC has proposed such fines against at least three other companies since the beginning of last year.

Both Alltel and At&t were fined for having failed to provide accurate certification that they were protecting their customers' data, with At&t having to pay $550, 000 in July last year to settle related FCC complaints.

Through a letter that was send to the FCC in February, Amp'd assured the commission that its internal procedures do protect phone records. However, the carrier didn't actually mention what those procedures were. As a result it now risks being fined.

'We think the proposed fine is based on a misunderstanding, and we believe we will be able to demonstrate we have been in compliance with FCC rules that require companies to protect personal information', said Amp'd spokeswoman Aurli Bokovza.

The FCC has promised 'aggressive, substantial steps' to crack down on all phone companies that fail to protect such records; looks like it actually plans to stick to its declaration. Several carriers managed to avoid being fined by proving they had met certification requirements. Amp'd, the wireless company that is aimed at the youth market, as well as the other two companies that are about to be fined, Easterbrook Cellular and CTC Communications have up to 30 days to provide more information regarding their procedures to protect phone records if they want to avoid the fine also.