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California DOJ Announces $33 Million Settlement With Comcast Over Privacy Violations
Practical Law Legal Update 8-618-9708 (Approx. 3 pages)
California DOJ Announces $33 Million Settlement With Comcast Over Privacy Violations
by Practical Law Intellectual Property & Technology
| Published on 23 Sep 2015 • USA (National/Federal) |
California Attorney General Kamala Harris announced a settlement agreement with Comcast for $33 million, resolving actions the California Department of Justice and California Public Utilities Commission brought against Comcast for improper disclosure of customer information.
On September 17, 2015, California Attorney General Kamala Harris issued a press release announcing a settlement agreement with Comcast Cable Communications Management and affiliated companies (collectively Comcast) for $33 million. The agreement is part of a global agreement that resolves actions by the California Department of Justice (CDOJ) and California Public Utilities Commission (CPUC) in the Superior Court of California, Court of Alameda, as well as administrative actions.
The actions were brought after Comcast posted online the names, phone numbers and addresses of tens of thousands of customers who had paid for unlisted voice over internet protocol (VOIP) phone service. Attorney General Harris commented that such disclosure was a breach of privacy and the settlement agreement was intended to:
- Provide meaningful relief to the victims.
- Bring more transparency to Comcast's privacy practices.
- Send a message that consumer privacy violations will result in significant penalties.
Under the settlement agreement, Comcast must pay:
- $25 million in penalties and investigative costs to the CDOJ and CPUC.
- $8 million in restitution to customers, including refunding all fees paid for unlisted service with an additional $100 on top of the refund for each customer.
In addition, as part of a stipulated judgment filed in the Alameda Superior Court, Comcast agreed to a permanent injunction requiring it to:
- Improve how it handles customer complaints.
- Strengthen the restrictions it places on its vendors' use of customer information.
- Provide a simple disclosure form to customers explaining the ways it uses unlisted phone numbers and other personal information.
The Utility Reform Network (TURN) and the Greenlining Institute were part of the proceedings and settlement negotiations and approved the settlement terms.