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Legislation to Protect
Consumers’
Private Phone Records
The Federal Trade Commission told the House Committee on Energy and
Commerce that “aggressive law enforcement is at the center of
the FTC’s efforts to protect consumers’ telephone call
records from pretexting,” and said that proposed legislation,
the “Phone Records Act,” would provide important new tools
that would assist the Commission in combating the unlawful practice.
“Ensuring the privacy and security of consumers’ personal
information is one of the Commission’s highest priorities,”
said Lydia Parnes, Director of the FTC’s Bureau of Consumer
Protection. Individuals or companies that obtain access to consumers’
phone records through fraud, “without the consumer’s knowledge
or consent, not only violate the law, but undermine consumers’
confidence in the marketplace and in the security of their sensitive
data. Accordingly, the Commission has used its full arsenal of tools
to attack the pretexters and the brokers who sell pretexted information.”
The testimony notes that consumers whose phone records were obtained
and sold have testified that “they have been stalked and physically
threatened by, for example, a former co-worker, an ex-spouse and an
ex-boyfriend. In addition to the real threat posed to their safety,
these consumers have spent significant time and hundreds of dollars
changing phone numbers or service providers,” Parnes said.
“The proposed Prevention of Fraudulent Access to Phone Records
Act (the “Phone Records Act”) contains several important
components that would assist the Commission in combating phone pretexting,”
the testimony states. The Act would prohibit pretexting –the
act of posing as the customer to obtain that customer’s phone
records – and “extend liability to individuals who solicit
such records and knew or should have known that the records would
be obtained through false pretenses,” she added.
“The Phone Records Act also would allow the FTC to recover civil
penalties from violators. Often, monetary penalties can be the most
effective civil remedy in privacy-related actions and . . . the Commission
currently is unable to obtain this remedy in phone pretexting cases
brought under the FTC Act,” the testimony states. “Finally
the Phone Records Act contains an important exemption for law enforcement
agencies in connection with their official duties,” Parnes testified.
“Protecting the privacy of consumers’ telephone records
requires a multi-faceted approach,” the testimony notes, including
coordinated law enforcement efforts, efforts by the telephone carriers
to protect the records, and outreach to consumers on actions they
can take to protect themselves. “The Commission has been at
the forefront of efforts to safeguard consumer information and is
committed to continuing its work in this area.”
The Commission vote to approve the testimony was 5-0.
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