Federal Communications Commission

FCC Provides Guidance on Rolling Recertification Pursuant to the Lifeline Modernization Order

In this Public Notice, the Wireline Competition Bureau (Bureau) provides guidance regarding the implementation of the rolling recertification process, as established by the 2016 Lifeline Modernization Order. The Commission adopted rules to change the subscriber eligibility recertification process from once each calendar-year to a rolling process based on each subscriber’s service initiation date. Currently, Lifeline subscribers must recertify their eligibility once every calendar year. The Order adopted a rolling recertification process that requires subscriber eligibility to be recertified every 12 months following the subscriber’s service initiation date. The Commission established this rolling recertification requirement to improve administrative efficiency and reduce burdens on carriers, USAC and, in the future, the National Verifier.

FCC Chairman Tom Wheeler Announces Staff Changes

Federal Communications Commission Chairman Tom Wheeler announced the appointment of Lisa Hone as legal advisor to the Chairman with responsibility for wireline telecommunications issues, and the departure of Stephanie Weiner.

Hone begins work in the Chairman’s office in November. Hone has most recently served as an associate bureau chief in the FCC’s Wireline Competition Bureau (WCB). She has also served as a legal advisor for former Commissioner Michael J. Copps and as a deputy division chief in the Telecommunications Access Policy Division in WCB. Prior to joining the staff of the FCC in 2010, Hone worked at the Federal Trade Commission where she conducted and supervised federal court litigation and rulemaking proceedings involving a wide array of consumer protection issues. Hone has also worked in the US Senate (on detail from the FTC) and in private practice at Davis Polk & Wardwell in New York City. Hone earned her law degree from the University of California, Los Angeles and earned a bachelor’s degree from Wesleyan University.

Weiner has been at the Commission since 2013, serving as senior legal advisor to the Chairman and, prior to that, in the FCC’s Office of General Counsel. Weiner has served in senior legal positions with Neustar, Inc.; the US Department of Energy; the FCC’s Wireline Competition Bureau; and as an associate at Harris, Wiltshire & Grannis, LLP. Weiner earned a law degree from Northwestern University School of Law, a master's from the University of Chicago, and a bachelor’s from Brown University.

FCC Announces Excellence in Economics, Engineering Award Winners

The Federal Communications Commission announced the winners of the Excellence in Economic Analysis and Excellence in Engineering Analysis Awards. These awards are intended to recognize Commission staff for outstanding economic analysis, and engineering, scientific or technical contributions that they have performed in the course of their work at the Commission.

Eugene Kiselev of the Media Bureau and Katherine LoPiccalo of the FCC’s Office of Strategic Planning share the 2016 Excellence in Economic Analysis Award for economic analysis of the Charter/Time Warner Cable/Bright House merger application. Kamran Etemad of the Wireless Telecommunications Bureau and Robert Pavlak and Navid Golshahi of the Office of Engineering and Technology are the winners of the Commission’s 2016 Excellence in Engineering Award for their work on the technical issues for the Citizens Band Radio Service in the 3550 – 3700 MHz band.

FCC Rejects Reconsideration of Calling Card Company Fines

The Federal Communications Commission rejected petitions for reconsideration of $20 million in fines issued against four prepaid calling card companies for deceptively marketing their products. In October 2015, the FCC issued separate $5 million fines against four calling card companies, Locus Telecommunications, Lyca Tel, NobelTel, and Touch-Tel USA, following an investigation by the FCC’s Enforcement Bureau. Each of the companies formally asked the FCC to reconsider those fines in four, separate petitions for reconsideration. The FCC dismisses and denies those requests and continues to seek payment of the fines.

The FCC has referred these matters to the US Department of Justice, which leads the process of collecting outstanding fines in federal court. The companies’ advertisements, apparently targeting immigrant communities, suggested that their calling cards could be used for hundreds or thousands of minutes of international calls. Multiple fees and surcharges added by the companies, however, caused the actual calling minutes available to consumers to be much fewer than advertised.

Robocall Strike Force Update

The released three main goals, with what the strike force delivered and the work that remains:
Goal 1: Robust Call Blocking & Filtering Tools for Consumers
Goal 2: Faster Implementation of Caller ID Authentication Standards
Goal 3: Solutions to Detect & Mitigate Unwanted Calls
They offered the following next steps:
Industry Must Ensure Continued Progress
Industry Must Be Aggressive in Achieving Concrete Deliverables
Providers Must Commit to & Comply with Implementation Deadlines
Providers Must Give Regular Updates, Particularly Where Work is Handed Off to
Other Industry Groups

FCC Furthers Consumer Engagement Efforts with Consumer Help Center Enhancements

A core component of the Federal Communications Commission’s Consumer and Governmental Affairs Bureau’s mission is to empower consumers in the telecommunications marketplace. True empowerment requires that consumers be active participants in the FCC’s processes. That is why, in January 2015, the FCC launched the Consumer Help Center. Through the Help Center, the FCC not only modernized and revitalized the consumer complaint intake process, these improvements also introduced new resources for educating consumers and sharing complaint data. Since the Help Center’s launch, we have made concerted efforts to continue to improve the quality of visitors’ experience, increase transparency around the complaint data we collect, and develop new ways to engage consumers.

Our latest enhancements to the Consumer Help Center is the “Tell Your Story” feature that gives consumers a new way to share with us their concerns and observations about a provider, a policy, or an issue affecting them or their communities generally. The redesigned Help Center webpage also provides easier access to all of the FCC’s consumer guides as well as the latest updates to consumer-related information on FCC.gov.

When you “Tell Your Story,” your comments will not be formally served on your provider as is our practice with complaints about service and billing. Instead, they will be used by Commission staff to inform policy making and identify practices that may be ripe for potential enforcement action. This differentiation will better allow the agency to focus its complaint resolution resources on those types of issues while maintaining and enhancing consumers’ ability to give voice to other concerns and thoughts.

FCC Agenda for October 2016 Meeting

The Federal Communications Commission will hold an Open Meeting on the subjects listed below on Thursday, October 27, 2016:

Protecting the Privacy of Customers of Broadband and Other Telecommunications Services Alerts (WC Docket No. 16-106): The Commission will consider a Report and Order that applies the privacy requirements of the Communications Act to broadband Internet access service providers and other telecommunications services to provide broadband customers with the tools they need to make informed decisions about the use and sharing of their information by their broadband providers.

Locus Telecommunications, Inc., Lyca Tel, LLC, Touch-Tel USA, LLC, NobelTel, LLC: The Commission will consider a Memorandum Opinion and Order that dismisses and denies a Petition for Reconsideration of a Forfeiture Order issued by the Commission for the deceptive marketing of prepaid calling cards.

Keynote Remarks of Commissioner Clyburn at #Solutions2020 Policy Forum

We are calling this afternoon's policy forum #Solutions2020 because we firmly belive that we can achieve robust, affordable connectivity for all Americans within the next four years. The six pillars I will outline, if fully implemented, will connect those digital deserts with robust, affordable communications services.

1) Ensure Affordable Communications: Lack of affordability remains one of the largest barriers to connected communities in this country, which is why I have made it the first pillar.
2) Empowering Communities: Local governments, that want to bring broadband connectivity to their communities, particularly when the private sector has failed to do so, should have, that right.
3) Broadband as a Driver of Improved Health Services: We must explore new ways, to ensure our nation’s health facilities, are equipped with advanced broadband-enabled technologies.
4) Promoting a More Diverse Media Landscape: We must strive to do more when it comes to making our media landscape truly reflective of the melting pot we call America.
5) 5G and Beyond for All Americans: There is a lot of buzz, around “5G” and I share this excitement. However, we must ensure, that the benefits of high-speed wireless broadband, reach all communities, including those Americans, who continue to rely on 2G service. And 5G connectivity, is largely reliant on the availability of more spectrum.
6) Enhancing Consumer Protections: Consumers deserve real transparency, when it comes to signing up for communications services.

Remarks of Commissioner Pai on Receiving Freedom of Speech Award at the Media Institute's 2016 Awards Banquet

We’ve had success in calling attention to government initiatives that threatened our constitutional freedoms. The most salient example was the Federal Communications Commission’s ill-advised “Critical Information Needs” study. This study involved researchers funded by the agency that licenses television stations going into broadcast television newsrooms and asking questions about editorial judgment. The FCC ultimately scrapped this study, thankfully. My op-ed in The Wall Street Journal may have started us down the path toward this decision. But what compelled the FCC to stop was the opposition of Americans from around the country and across the political spectrum. I wish I could say that the past is prologue, and that the future of free expression is bright. But I’m not so sure. I fear that our cultural consensus on the importance of being able to speak one’s mind is eroding. And nowhere is that consensus more at risk than on college campuses.

Commissioner O'Rielly Remarks Before International Broadcasters IdeaBank Conference

A good part of my focus at the Commission has been on opening closed doors for broadcasters to leverage new technology and reinvent themselves and the industry. Another recent area of reform involves the move to transition the public inspection files maintained by broadcasters to an online format. Additionally, last month, the Commission altered its old ad hoc foreign ownership approval procedures to allow broadcasters greater access to capital. On another front, many of you are likely following the Commission’s efforts on AM revitalization, which my colleague Commissioner Pai has been instrumental in moving forward. After a lot of consternation, we were finally able to reach accord and provide many AM radio stations with new options to compete in the ever changing marketplace.

FCC Reaches $48m Settlement with T-Mobile Over ‘Unlimited' Data Plans

The Federal Communications Commission’s Enforcement Bureau announced that T-Mobile will pay a fine and provide benefits to consumers totaling at least $48 million as part of a settlement resolving an investigation into whether the company adequately disclosed speed and data restrictions for its “unlimited” data plan subscribers.

The FCC’s investigation found that company policy allows it to slow down data speeds when T-Mobile or MetroPCS customers on so-called “unlimited” plans exceed a monthly data threshold. Company advertisements and other disclosures may have led unlimited data plan customers to expect that they were buying better and faster service than what they received. The Commission’s 2010 Open Internet transparency rules require broadband Internet providers to give accurate and sufficient information to consumers about their Internet services so consumers can make informed choices. The settlement includes $48 million in total financial commitments from T-Mobile. This includes a $7.5 million fine in addition to $35.5 million in consumer benefits offered to T-Mobile and Metro PCS customers with “unlimited” plans and at least $5 million in services and equipment to American schools to bridge the homework gap facing today’s students. Eligible subscribers will be offered discounts on accessories and additional data. T-Mobile will update its disclosures to clearly explain the “Top 3 Percent Policy,” who may be affected by it, what triggers its application and the impacts on data speeds.

T-Mobile will also be required to notify individual customers when their data usage approaches the threshold. The company will also adopt the FCC’s “Consumer Broadband Label” to provide more information and clarity on service terms, including speed, reliability and cost, such as fees and other add-on charges. Under the settlement, T-Mobile is required to update and improve its disclosures regarding its “unlimited” plans. It must either: provide clear and conspicuous disclosures about all restrictions on the amount and speed of data provided for “unlimited” data plans; cease the use of the term “unlimited” to label such plans; exclude “unlimited” data plan customers from the “Top 3 Percent Policy” or any similar practice; or limit any speed reductions for “unlimited” data plan customers to the minimum speed advertised for that plan.

In addition to the $7.5 million fine to be paid to the U.S. Treasury, the settlement requires T-Mobile to fund a $35.5 million consumer benefit program for T-Mobile and MetroPCS “unlimited” mobile data customers. Eligible T-Mobile and MetroPCS customers will be offered both:

  • Discounts of 20 percent off (up to $20) of the regular price for any in-stock accessory.
  • 4 GB of additional data if they have a mobile Internet data line – specifically T-Mobile’s “Simple Choice MINT” plan – or a tablet plan under the MetroPCS brand.

Empowering the 21st Century Consumer

Protecting consumers is part of the Federal Communications Commission’s DNA.

The Communications Act directs the FCC to promote fast deployment of communications technologies and networks to all Americans. It calls on the Commission to ensure fair access to those networks. It empowers the Commission to hold network operators and licensees accountable to the public interest – through rulemaking, periodic review of licenses, and effective enforcement. Our multiple Bureaus work collaboratively to promote unencumbered and fair access to communications technology, transparency in billing, privacy, and safety. Where appropriate, we also collaborate with our partner agencies, including the Federal Trade Commission, Consumer Financial Protection Bureau, Department of Homeland Security, National Telecommunications and Information Administration, and state, local, and tribal authorities. In a dynamic communications environment, the FCC is adapting and modernizing to keep up with the times and promote competition. In the coming months, the Commission will consider adopting or proposing actions aimed at giving consumers the tools to protect their personal information online, ensuring customer choice in the market for video navigation devices, and expanding high-speed mobile data services to the 3.1 million Americans living in unserved or poorly-served areas. This report outlines the recent actions that the FCC has taken to protect consumers while promoting the competition and ingenuity that keep our markets thriving.

The Future of Local Internet Choice

I am honored to receive the National Champion for Local Internet Choice Award. And I am humbled to be recognized alongside the other award winners, each of whom have been remarkable leaders in the nationwide effort to give communities the power to decide their broadband futures. In the last three years, enormous progress has been made for local Internet choice.

But the battlefield is no longer the Federal Communications Commission and the courts, but state legislatures. The battle plan is for advocates for local Internet choice to bring every local mayor, city council, business, school, college, library, chamber of commerce and citizen together to convince state officials that for the future of those cities and towns and by extension, the state itself, localities must have the ability to determine their own broadband futures. Unless cities and towns can get predictable and affordable access to old-fashioned utility poles, building gigabit networks will be difficult and costly. A growing number of cities have built or are interested in building dark fiber networks and then leasing capacity on those networks to retail Internet service providers.

In closing, I’ll paraphrase just about every State of the Union address – “the state of local Internet choice is strong.” This is true despite the setback dealt by the 6th Circuit. Many challenges lay ahead, but so do many opportunities. If the past three years serve as precedent, I know that the passionate, knowledgeable and resilient advocates of this movement will overcome the challenges and take advantage of the opportunities. Let’s keep working together until every community can determine its own broadband needs without barriers. Thanks again for this wonderful honor and for all the support you have given Chairman Wheeler, the FCC and me for the past three years.

[Gigi Sohn is Counselor to the Chairman of the Federal Communications Commission]

Remarks of Commissioner Clyburn at Consumer Advisory Committee

In July, Rep Mike Doyle (D-PA) and I penned an Op-Ed which articulated a simple principle: consumers should know exactly what they will pay before they get their first month’s bill – and, in fact, this should be known and clear before being asked to provide sensitive personal information. We called on the nation’s communications providers to lead the way by voluntarily improving transparency and disclosure of these “below the line” fees so that when consumers sign up for service, either online or in-store, they will not have to wait for their first bill to learn what their service truly costs. So I am extremely pleased that three months later, the Federal Communications Commission’s Consumer Advisory Committee “No Surprises Task Force” has come up with a series of recommendations that address these very concerns.

Implementing these recommendations would be a huge win for consumers and an opportunity for providers to show how committed they are to putting customers first. So once again, to the Task Force, the Consumer Advisory Committee and the staff of the FCC’s Consumer and Governmental Affairs Bureau, thank you for your tireless efforts on such an important consumer issue and as always, thank you for being a voice for those too seldom heard.

Remarks of FCC Commissioner Michael O'Rielly Before the Hudson Institute

Given the prominence of this venue and Hudson Institute’s legacy of addressing more substantive issues, I thought it would be appropriate to discuss a topic often not addressed by FCC Commissioners: certain tenets of judicial review of FCC items.

Traditionally, many within the legislative and administrative branches of government tend to shy away from discussing particular outcomes of court cases or the collective approach of judicial review. Perhaps hoping that the lack of criticism or comments will prevent a bad outcome in the next case, they avoid discussing altogether or temper their review of instances where the courts have misapplied the law or pursued a line of reasoning devoid of logic or common sense. Having witnessed a number of bad decisions recently, however, I have less compulsion to keep mum about the judicial branch, although I hope the following does so in a relatively respectful way. Additionally, I would argue that the lack of review or analysis of decisions generally deemed out of the mainstream, even by those supportive of a particular outcome, does a disservice to the American people and the court system as a whole. To do this, I will use court review of the Commission’s Net Neutrality rules as a basis for examination. I suggest that the court review of the Commission’s “work” both lacked appropriate rigor necessary for the conclusion reached and established a host of dreadful precedents that will haunt communications policy and administrative law for years to come.

Chairman Wheeler's Response to Rep. Chabot Velazquez Regarding Privacy of Broadband Customers' Personal Information

On August 25, 2016, House Small Business Committee Chairman Steve Chabot (R-OH) and Ranking Member Nydia Velazquez (D-NY) wrote to Federal Communications Commission Chairman Tom Wheeler to express concern that the FCC's privacy proposals will result in rules that have a negative economic impact on small Broadband Internet Access Service (BIAS) providers.

On Oct 4, Chairman Wheeler responded by saying, "The Commission continues to engage in a regulatory flexibility analysis for this ongoing proceeding. When final rules are adopted, the Commission's decision will incorporate consideration of the impacts of the rules on small BIAS providers and will include a Final Regulatory Flexibility Analysis (FRFA) that fulfills the requirements of the Regulatory Flexibility Act. The comments submitted by the US Small Business Administration's Office of Advocacy will be addressed in the FRFA."

Remarks of Commissioner Pai on Need for a Digital Empowerment Agenda

High-speed Internet access, or broadband, has enabled the democratization of entrepreneurship. Way back when, if you had a good idea, the odds were against you reaching success at scale unless you worked in a large organization, had personal connections, or otherwise hit the lottery. But today, with a powerful plan and a digital connection, you can raise capital, start a business, immediately reach a worldwide customer base, and disrupt an entire industry. Never before has there been such opportunity for entrepreneurs with drive and determination to transcend their individual circumstances and transform our country.

I want to think big about how to bring broadband to every part of the country. I want to discuss how government at all levels can help spur more entrepreneurship and innovation. In short, I want to share my vision of a Digital Empowerment Agenda that will allow all Americans—no matter what their race, religion, gender, or sexual orientation, no matter where they live, no matter what their personal background—to make their lives better.

Comcast To Pay $2.3 Million After Subscribers Complain Of Billing For Services & Equipment They Never Ordered

The Federal Communications Commission’s Enforcement Bureau announced that Comcast Corporation will pay a $2.3 million fine to resolve an investigation into whether the company wrongfully charged cable TV customers for services and equipment that those customers never authorized. The Communications Act and the FCC’s rules prohibit a cable provider from charging its subscribers for services or equipment they did not affirmatively request, a practice known as “negative option billing.” Negative option billing burdens customers with the responsibility of contacting a cable company to dispute the charges and obtain refunds. The Communications Act and the FCC’s rules prohibit a similar practice by telecommunications carriers when unauthorized charges are placed on customers’ phone bills, an abuse known as “cramming.”

The Commission received numerous complaints from consumers alleging that Comcast added charges to their bills for unordered services or products, such as premium channels, set-top boxes, or digital video recorders (DVRs). In some complaints, subscribers claimed that they were billed despite specifically declining service or equipment upgrades offered by Comcast. In others, customers claimed that they had no knowledge of the unauthorized charges until they received unordered equipment in the mail, obtained notifications of unrequested account changes by email, or conducted a review of their monthly bills. Consumers described expending significant time and energy to attempt to remove the unauthorized charges from their bills and obtain refunds. In response to these complaints, the FCC undertook an investigation of the company. Under the terms of the settlement, Comcast will pay the largest civil penalty assessed from a cable operator by the FCC and implement a five-year compliance plan.

FCC Commissioner Tells Kansas Association of Broadcasters that Retaining Newspaper-Broadcast Cross-Ownership rule is a ‘Profound Mistake’

Speaking to the Kansas Association of Broadcasters, Federal Communications Commission member Ajit Pai said, “I can’t help but mention the FCC’s decision this year to retain the newspaper-broadcast cross-ownership rule. Put simply, it makes no sense for the federal government to discourage investment in the newspaper industry. But that’s precisely what the newspaper-broadcast cross-ownership rule does. It’s particularly unfortunate because broadcasters are well-situated to partner with newspapers. The reason is simple. Investments in newsgathering are more likely to be profitable when a company can distribute information over multiple platforms. This is not just a theory. Because the FCC grandfathered newspaper-broadcast combinations that predated the 1975 adoption of the newspaper-broadcast cross-ownership rule, we have evidence from across the United States. There are at least 15 studies demonstrating that newspaper-television cross-ownership increases the quantity and/or quality of news broadcast by cross-owned television stations.”

FCC’s Biennial Report to Congress as Required by the Twenty-First Century Communications and Video Accessibility Act of 2010

The Consumer and Governmental Affairs Bureau of the Federal Communications Commission prepared this Biennial Report for submission to the House and Senate Commerce Committees in accordance with the Twenty-First Century Communications and Video Accessibility Act of 2010 (CVAA).

This Report presents information and assessments related to the accessibility of telecommunications services and equipment, advanced communications services (ACS) and equipment used for ACS, and Internet browsers built into mobile phones, along with a summary of actions taken by the Commission related to the CVAA. Specifically, this Report presents information and assessments related to the accessibility of telecommunications services and equipment as required by section 255,14 ACS and equipment used for ACS as required by section 716,15 and Internet browsers built into mobile phones as required by section 718,16 since the submission of the 2014 CVAA Biennial Report. In addition, this Report provides information about complaints alleging violations of sections 255, 716, and 718 for the period of January 1, 2014, through December 31, 2015.

FCC Chairman Wheeler's Proposal To Promote Fairness, Competition, And Investment In The Business Data Services Market

To promote fairness, competition, and investment in this $45 billion marketplace, Federal Communications Commission Chairman Tom Wheeler circulated to his fellow Commissioners proposed rules to take necessary and overdue steps to reform a long-broken regulatory regime.

The Order provides a new framework for the Business Data Services (BDS or “special access”) market that strikes a balance between targeted regulation for legacy TDM (DS1 and DS3) services, where evidence of market power is strongest, and lighter-touch regulation of packet-based services, where there has been new entry and competition may be emerging. The Order also reaffirms that TDM and Ethernet BDS are both subject to the Commission’s Title II oversight. This framework supports the rapid deployment of innovative 5G mobile service by ensuring that wireless providers have fair access to BDS, including packet-based BDS, at just and reasonable rates, terms, and conditions. These requirements are enforced by strengthening our complaint process to expedite resolution of problems if they arise.

The Chairman is also proposing a Further Notice on packet-based BDS, which will provide the Commission with a vehicle to take further action on Ethernet pricing if that proves necessary. A Second Further Notice of Proposed Rulemaking would seek comment on how best to collect accurate data on market developments and what administrable means can be developed, if necessary, to deal with any concerns that may emerge with respect to pricing for packet-based BDS.

FCC Announces Tentative Agenda For October 2016 Open Meeting

Federal Communications Commission Chairman Tom Wheeler announced that the following items are tentatively on the agenda for the October Open Commission Meeting scheduled for Thursday, October 27, 2016:

  1. Protecting the Privacy of Customers of Broadband and other Telecommunications Services: The Commission will consider a Report and Order that applies the privacy requirements of the Communications Act to broadband Internet access service providers and other telecommunications services to provide broadband customers with the tools they need to make informed decisions about the use and sharing of their information by their broadband providers. (WC Docket No.16-106)
  2. Deceptive Marketing: The Commission will separately consider four Memorandum Opinions and Orders that dismiss and deny Petitions for Reconsideration of four Forfeiture Orders issued by the Commission for the deceptive marketing of prepaid calling cards.

Separately, the FCC announced it has lifted the sunshine restrictions applicable to Expanding Consumers’ Video Navigation Choices (MB Docket No. 16-42); Commercial Availability of Navigation Devices (CS Docket No. 97-80) – an item that was deleted from the Commission’s Sept meeting agenda. So, talk amongst yourselves.

Protecting Privacy for Broadband Consumers

Earlier in 2016, the Federal Communications Commission launched a proceeding aiming to extend similar privacy protections to the information collected by your broadband provider. Our goal throughout the process has been straightforward: to give consumers the tools they need to make informed decisions about how ISPs use and share their data, and the confidence that ISPs are taking steps to keep that data secure, all while providing ISPs the flexibility they need to continue to innovate.

Over the past six months, we’ve engaged with consumer and public interest groups, fixed and mobile ISPs, advertisers, app and software developers, academics, other government actors including the FTC, and individual consumers to figure out the best approach. Based on the extensive feedback we’ve received, I am proposing new rules to provide consumers increased choice, transparency and security online. I have shared this proposal with my colleagues and the full Commission will consider these proposed privacy rules at our upcoming monthly meeting on October 27.

Under the proposed rules, an ISP would be required to notify consumers about what types of information they are collecting, specify how and for what purposes that information can be used and shared, and identify the types of entities with which the ISP shares the information. In addition, ISPs would be required to obtain affirmative “opt-in” consent before using or sharing sensitive information. Information that would be considered “sensitive” includes geo-location information, children’s information, health information, financial information, social security numbers, web browsing history, app usage history, and the content of communications such as the text of emails. All other individually identifiable information would be considered non-sensitive, and the use and sharing of that information would be subject to opt-out consent. Calibrating consent requirements to the sensitivity of the information aligns with consumer expectations and is in harmony with other key privacy frameworks and principles – including those outlined by the FTC and the Administration’s Consumer Privacy Bill of Rights. The proposed rules are designed to evolve with changing technologies, and would provide consumers with ways to easily adjust their privacy preferences over time.

The proposed rules also require ISPs to take reasonable measures to protect consumer data from breaches and other vulnerabilities. If a breach does occur, the rules would require ISPs to take appropriate steps to notify consumers that their data have been compromised.

Lifeline Disclosure

In a letter dated April 15, 2016, to Federal Communications Commission Chairman Tom Wheeler, Senate Commerce Committee Chairman John Thune (R-SD) asked that the FCC address concerns raised by him regarding the potential violation of 47 C.F.R. § 19.735-203, pertaining to disclosure of "nonpublic information. . . directly or indirectly, to any person outside the Commission," as a complaint requiring an investigation pursuant to 47 C.F.R. § 19.73 5-107(b). Specifically, Chairman Thune expressed concern that information regarding the 2016 Lifeline Modernization Order, 31 FCC Rcd 3962 (2016), specifically news of an agreement among FCC Commissioners O'Rielly, Pai and Clyburn to vote for a hard cap on Lifeline spending set at $2 billion (the "deal" or "compromise"), appeared in the news media publications Politico and Broadcasting & Cable prior to the FCC's vote on the Lifeline Order.

Based on Investigators' review of phone records, email messages and interviews, Gigi Sohn, Counselor to the FCC Chairman, provided some of the information revealed in the Politico story that appeared at approximately 10:49 am on March 31, 2016. In an interview, Sohn revealed that Shannon Gilson, FCC Communications Director, requested that Sohn call Politico reporter Margaret McGill and inform McGill that the FCC meeting was delayed from 10:30 until 12:00 and that there was a compromise on Lifeline, including the fact that there would be an annual cap on the amount of money available in the Lifeline program. Sohn was instructed not to tell McGill the amount of the agreed-upon cap. In an interview, Gilson explained that throughout the morning of March 31st, the FCC Office of Media Relations had been inundated with calls from the press and that it was clear many reporters and stakeholders were already aware a deal was being crafted by Commissioner Clyburn and the Republican commissioners. Thus, because she felt it would be beneficial to get the story out accurately, Gilson sought and received authorization from Chairman Wheeler and Ruth Milkman, Wheeler’s Chief of Staff, to provide the press with high level details. Gilson exercised her discretion in choosing both Politico and McGill as the appropriate recipients of this information, and instructed Sohn to make the call. We have been unable to determine with certainty who provided McGill with the information on the amount of the agreed upon cap.

We found no evidence that the information was provided to the press in an attempt to unduly influence the outcome of the vote.