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Thu, 09 Jul 2012 00:00:00 -0400http://news.yahoo.com/cannes-festivals-autograph-hunters-fans-200311807.htmlT-Mobile to pay $2.2M to settle criminal charges
USA Today
T-Mobile USA said Tuesday it agreed to pay the US government $2.2 million to settle criminal charges that it unlawfully retained customer billing information and then sold that information to third-party marketers.
The US Justice Department said in an indictment that T-Mobile in March 2010 sold information about customer activity, including time and date, to third-party marketers for $2.2 million.
“T-Mobile agreed to this settlement in order to avoid the expenses and inconvenience of protracted litigation,” said Assistant Attorney General Lanny Breuer. “Mobile telecommunication consumers have the right to expect that their personal information will not be sold without their consent, and that they will not be illegally tracked and profiled as a result.”
T-Mobile US Inc., based in Bellevue, Wash., said it reached the settlement with the US attorney’s office in San Diego “after careful consideration and after taking into account potential legal risks and challenges.”
“We believe the resolution of this matter is in the best interest of our customers and the company,” said T-Mobile spokesman Barry Wilms.
Under the settlement, T-Mobile agreed to dismiss the indictment without prejudice, Wilms said. The company also agreed to pay a criminal fine of $2.2 million and has agreed to pay an additional $5 million in civil penalties.
The settlement marks the second time in recent months that the Justice Department has charged carriers with illegally retaining customer data.
The indictment alleges that T-Mobile sold bulk customer information to third-party marketers by creating, maintaining and storing marketing-related data about customers. The indictment alleges that T-Mobile sold the customer information to marketers between at least March 2010 and October 2011.
“If this data was sold, it could be used against the subscribers to make them appear more desirable to the marketers,” said the indictment, which did not provide specifics about who might have purchased the data.
The settlement was reached this month after the company declined to enter a plea agreement.
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The theaters are going to try to see if they can work out a deal with one of the big fast-food chains to give them a deal on theater pricing and hopefully some of the beer and soda pop they sell during the movies. 827ec27edc