TerraCom and YourTel Settle Consumer Privacy and Lifeline Investigations with $3.5 Million Payment

In a recent development, TerraCom and YourTel America have agreed to a $3.5 million settlement with the Federal Communications Commission (“FCC”) to resolve allegations of mishandling consumer personal information and violating Lifeline program rules. The settlement stems from an investigation revealing that the companies failed to adequately protect personal data of over 300,000 consumers, including sensitive details such as Social Security numbers and driver's licenses. The FCC found that these details were stored on unprotected servers accessible via the Internet, resulting in a significant data breach. Travis LeBlanc, Chief of the FCC’s Enforcement Bureau, emphasized the importance of consumer trust in safeguarding personal information. He highlighted that the settlement requires concrete steps from TerraCom and YourTel to enhance their security practices and prevent future breaches. As part of the settlement, both companies will pay a civil penalty, notify affected consumers, provide complimentary credit monitoring services, and implement measures to mitigate potential harm. The settlement also addresses YourTel’s failure to comply with FCC instructions to remove ineligible Lifeline subscribers, which led to overbilling of the federal Lifeline program. To rectify this, YourTel will appoint a senior compliance officer, develop a comprehensive compliance plan, and undergo regular reporting and oversight by the FCC.