Boston, MA 09/05/2014 (wallstreetpr) – Verizon Communications Inc.(NYSE:VZ) is to pay a penalty of $7.4 million as settlement for being found to have used customers personal information for its marketing purposes according to Associated Press.
The Federal Communications Commission in a statement concluded that Verizon failed to notify its customers totaling 2 million of their privacy rights on first invoices. Verizon Actions are reported to have resulted in some customers receiving various marketing materials that they had not requested.
Terms of the Settlement
Verizon Communications Inc. (NYSE:VZ) will be required to notify its customers for the next three years of their rights to opt out of any bill. Regulators are trying to ensure that companies honor their duty of informing customers about their privacy choices as well as respecting their selections. Verizon has already stated that the problem did not in any way result in data breach or disclosure of customer’s personal information to third parties.
The settlement package is reported to be the highest on an investigation relating to privacy of customers personal telephone information. Using customer information for marketing purposes is not illegal in the U.S but companies are required to seek first the consent of their customers. Verizon Communications Inc.(NYSE:VZ) was in this case’ accused of only sending opt out messages and failed to do so for up to two million customers on the landline platform.
Verizon Announces Dividend Offer
Verizon Communications Inc. (NYSE:VZ) has stated that the problem was a just a common mistake going as far as saying that customers will not have to worry about any privacy breach.
Separately, the giant wireless company has announced a 55 cents a share dividend offer, which represents a 3.8% or 2 cents a share increase from the previous quarter offer. The dividends will be payable on November 3, 2014 marking the eighth consecutive quarter that the company has approved a dividend increase
