Washington state phone privacy rules put on hold
By The Associated Press
02.12.03
SEATTLE — Washington state regulations to protect the privacy of telephone customer account information, some of the toughest in the country, have been suspended by a federal judge.
In a case brought by Verizon Communications Inc. of New York, the nation's largest phone company, U.S. District Judge Barbara J. Rothstein ruled on Feb. 10 that federal privacy rules are sufficient to protect customers while the case over the state rules is pending.
In granting a preliminary injunction, Rothstein did not rule on whether state regulations governing use of account information, including when, where and to whom a customer makes calls, are unconstitutional as Verizon has claimed.
Verizon raised "serious questions" about constitutionality, and in weighing the company's free-speech rights against privacy interests "the balance of hardships tips in Verizon's favor," the judge wrote.
State regulations that were adopted in November and took effect in January required phone companies to obtain customer approval before selling calling records or using them to market anything but telecommunications services.
Federal Communications Commission opt-out rules also require phone companies to ask customers for permission to use their account information but allow such use for marketing unless a customer says no.
Verizon's lawsuit says the Washington Utilities and Transportation Commission overstepped its authority, infringing on company's ability to speak to and serve customers.
Out of 30 states in which Verizon provides local service, Washington is the only one in which the company has held back its opt-out marketing campaign. Verizon has nearly 1 million customers in the state.
Verizon and Qwest Communications International Inc. of Denver, which has 2.5 million customers in the state, halted opt-out marketing last year after widespread complaints about Qwest's approach — sending the notices as easy-to-miss inserts in monthly billings.
Verizon will begin sending opt-out notices while the case is pending, spokeswoman Missy Barran said. Qwest has made no decision on whether to resume its campaign, spokesman Michael Dunne said.