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D.C. Circuit Upholds $92 Million FCC Penalty Over T‑Mobile/Sprint Location‑Data Sales

The unanimous decision affirms the FCC’s power to treat device‑generated location records as protected customer data.

Court rules that the FCC lawfully fined T-Mobile over improper use of location data
A hand holding a T-Mobile phone emerges from the ground in an illustration of a hellish landscape in which zombies appear to be rising from the dead

Overview

  • T‑Mobile and Sprint lost their D.C. Circuit appeal challenging roughly $92 million in FCC fines for selling customers’ real‑time location information to aggregators.
  • The panel rejected arguments that device‑location data falls outside the Communications Act’s CPNI protections and called the carriers’ statutory reading strained.
  • Judges found the companies continued selling access after abuses were known and ruled the carriers waived any jury‑trial claim by paying the orders and seeking direct review.
  • The case stems from programs that fed LocationSmart and Zumigo, with misuse highlighted by access obtained through Securus to track individuals without consent.
  • AT&T and Verizon still contest separate FCC penalties in the 5th and 2nd Circuits, while T‑Mobile says it discontinued the program years ago and is reviewing the ruling.