Court Rejects Verizon Claim That Selling Location Data Without Consent Is Legal Author: Jon Brodkin Date: September 10, 2025 --- Summary The U.S. Court of Appeals for the 2nd Circuit has rejected Verizon's challenge to a $46.9 million fine imposed by the Federal Communications Commission (FCC) for selling customers' location data without their consent. This ruling adds to a split among federal courts regarding carriers’ privacy obligations and the FCC's enforcement powers, raising the likelihood of Supreme Court intervention. --- Key Details The Fine and Legal Context The FCC fined Verizon, T-Mobile, and AT&T in 2024 for selling users’ real-time location data without consent, based on violations exposed by a 2018 report. Verizon and T-Mobile lost appeals in their respective cases (2nd Circuit and DC Circuit), while AT&T won in the 5th Circuit. Verizon's appeal argued: The fine violated its Seventh Amendment right to a jury trial. The Communications Act does not cover device location data, only call location data. Court’s Findings The 2nd Circuit unanimously sided with the FCC, holding: The data qualifies as Customer Proprietary Network Information (CPNI) under the Communications Act. The FCC followed proper procedures and did not violate Verizon’s jury trial rights since Verizon voluntarily paid the fine instead of demanding a jury trial. Verizon “largely delegated” consent verification to third-party aggregators, some of whom misused the data, including enabling law enforcement access without customers’ knowledge or consent. The court distinguished this case from the Supreme Court’s 2024 decision in SEC v. Jarkesy, which addressed jury trial rights under securities laws, noting telecom fines involve a different enforcement process. --- Background on Location Data Sales Verizon previously operated a location-based services program, allowing aggregators like LocationSmart and Zumigo to collect and resell wireless customer location data. A 2018 New York Times article revealed security flaws and misuse, including a correctional facility contractor accessing data without proper legal authorization. --- Implications Conflicting rulings among federal circuits have created legal uncertainty regarding the FCC’s authority to fine carriers for privacy violations. The 2nd Circuit and DC Circuit rulings support the FCC’s enforcement power. The 5th Circuit ruling in favor of AT&T challenges it, suggesting potential Supreme Court review. --- Author Information Jon Brodkin is Senior IT Reporter at Ars Technica, covering telecom, FCC regulations, broadband consumer issues, court cases, and government tech industry regulation. --- Related Links Verizon location data sales fined by FCC T-Mobile loses appeal on location data sale AT&T wins appeal in 5th Circuit Supreme Court ruling in SEC v. Jarkesy (2024) --- Image Credit: Getty Images | Kevin Carter --- Note: The ongoing circuit split complicates the FCC's ability to enforce privacy protections, making a Supreme Court decision likely in the near future.