Report No. CC 98-5 COMMON CARRIER ACTION February 19, 1998 FCC CLARIFIES CUSTOMER PRIVACY PROVISIONS OF 1996 ACT; Customers To Control Use and Disclosure of Personal Information (CC Docket Nos. 96-115, 96-149) The Commission today adopted an Order that furthers the privacy rights of telecommunications customers while promoting the convenience by which customers may receive telecommunications service. In addition, the Commission's action fosters fair competition among telecommunications carriers regarding the use of customer information. This sensitive and commercially valuable customer information includes, for example, when a customer places a call, whom and where a customer calls, and the types of service offerings to which a customer subscribes. The Telecommunications Act of 1996 refers to this as "customer proprietary network information," or CPNI.

Section 222 of the 1996 Act establishes CPNI requirements, effective upon enactment, for all telecommunications carriers. The statute recognizes that customers must be able to control information they view as sensitive and personal from use, disclosure, and access by carriers. Where information is not sensitive, or where a customer so directs, the statute permits the dissemination of customer information. In response to requests from telecommunications companies, today's Order clarifies these CPNI requirements.

Among the Commission's conclusions are the following:

Finally, in a Further Notice of Proposed Rulemaking, the Commission asked for additional comment on three issues involving carrier duties and obligations established under sections 222: whether a customer may restrict carrier use of CPNI for all marketing purposes; the appropriate protections for carrier information and additional enforcement mechanisms the Commission may apply; and the foreign storage of, and access to, domestic CPNI.

Action by the Commission February 19, 1998 by Second Report and Order and Further Notice of Proposed Rulemaking (FCC 98-//). Chairman, Commissioners.

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