The Jeff Pulver Blog: Senate Extends Telephone Privacy Rules to VoIP Providers

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March 30, 2006

Senate Extends Telephone Privacy Rules to VoIP Providers

Today the Senate Commerce Committee adopted legislation to expand telephone privacy rules and apply them to VoIP providers.

Within 180 days of enactment, the FCC is required to develop new rules for IP-Enabled voice services to apply Section 222 of the telecom act and ensure customer record privacy and security. The Protecting Consumer Phone Records Act outlaws acquiring, selling or soliciting someone else’s VoIP or other phone records without their consent. It also specifically outlaws the fraudulent misrepresentation that a person has given authorization to obtain their VoIP or other phone records, often referred to as “pretexting.”

The legislation increases the penalties on bad actors and provides the Federal Communications, the Federal Trade Commission and State Attorneys General with strengthened enforcement authority. To further boost enforcement, it would also allow VoIP providers and other phone companies the ability to take legal action against data brokers or others who are illegally acquiring VoIP or other phone records to boost enforcement.

The legislation also requires VoIP providers and other phone companies to certify annually that they are in compliance with confidentiality procedures. VoIP providers and other phone companies would be hit with a $30,000 penalty for any violation in which they do not sufficiently protect their subscriber’s phone records.

The committee discussed, but did not adopt, three Sununu amendments dealing with VoIP:

• #1 -- IP Communications is not a Telecom Service -- to be worked out with staff. The amendment clarifies language that IP communications are not considered as telecom services. Sununu said we don’t want to refer to IP communications as a telecom provider. He did not offer this amendment, because he said the staff is close to working something out.

• #2 -- Getting VoIP out of Title II. Sununu said the amendment deals with whether we want to in any way begin putting VoIP under Title II. He said it’s a mistake to begin applying parts of Title II to IP. Sununu indicated Senator Lautenberg had identified a technical problem in terms of how this amendment as written could have unintended consequence for public safety. Thus, he decided not to offer the amendment at this time to work through the public safety issues. Sununu said he would vigorously oppose any bill that would apply Title II rules to IP Voice.
o Stevens again talked about “total communications” – that there shouldn’t be distinctions between types of communications. Stevens said he was happy that Sununu would withdraw the Title II amendment. Stevens said he has a disagreement with Sununu over “whether VoIP providers are carriers.” Stevens said it is easy for VoIP provider to protect information. Stevens said, ”VoIP Is a wonderful new system.” Says “we have a new world.” But has disagreement on applying Title II to VoIP.

• #3 One-Way Limitation. Sununu said the amendment deals with one-way services like instant messengering. His amendment would apply the VoIP definition already passed by the committee in the E911 bill -- S. 1063.
o Boxer asked why we would treat one-way services differently from two-way services – to give consumers less protection. Sununu responded that we don’t want to deal with privacy rules under both FTC and FCC rules.
o Stevens again talked about “total communications” and said we have to protect all phone records. Stevens opposes the one-way amendment. Said it’s the telephone number they are trying to protect.
o Inouye said key words are “total communications” indicating that he also did not support carving out one-way.
o Lautenberg said we ought to deal with this in more global way. Asked, what consumer protection would be diminished by the amendment, and would vote against it.
o Cantwell said applying it to one-way services would overlay a second set of requirements. Sununu said Sen Cantwell is correct, that these involve a variety of different communications (e-mail, instant messaging) that are already covered by different privacy rules. Sununu said it would create a bad precedent of overlapping jurisdiction.
o The fact that information service privacy is already covered under separate statute and subject to regulation by the FTC was new news to the minority. Sen Stevens, in the end, said he wouldn’t oppose this amendment if one-way service were covered by the FTC – and thus under jurisdiction of the Judiciary committee. Stevens asked that Sen Sununu withhold the amendment until the question of whether there would be overlapping jurisdiction could be determined.

(A more complete recap of the entirity of today's -- and yesterday's -- Internet and Communications Policy issue will be posted shortly)

Posted by jeff on March 30, 2006 02:42 PM | Permalink

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March 30, 2006

Senate Extends Telephone Privacy Rules to VoIP Providers

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