Court Rules Against Verizon On Marketing Practices
D.C. Circuit Court upholds FCC order against Verizon on customer-retention efforts
By John Eggerton -- Broadcasting & Cable, 2/10/2009 9:59:49 AM MT
The U.S. Court of Appeals for the D.C. Circuit has upheld the FCC's order to Verizon to stop using information gained as a result of the switch of a phone provider to cable to try to retain that customer with added incentives.
Cable operators, and phone companies, must notify each other about the migration of a phone customer from one to the other for purposes of "porting" the old number. That notice of the impending loss of a customer could also be a last ditch opportunity to try to keep that customer.
Comcast, Time Warner and Brighthouse had complained to the FCC that Verizon's attempts to do just that violated Telecommunications Act restrictions on carrier's use of propietary information for marketing purposes. The FCC agreed, eventually, and told Verizon to stop doing it.
Verizon took that decision to court, but the court Tuesday said the FCC's interpretation was reasonable and denied Verizon's challenge.
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