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Verizon Corp. has filed a federal lawsuit challenging the state's tough new telephone privacy rules, saying they are out of step with regulations the Federal Communications Commission adopted last summer.
The rules, set to take effect Jan. 1, bar telephone companies from selling customers' calling records or using them to market anything but telecommunications services without customers' permission.
Verizon's lawsuit, filed in U.S. District Court on Thursday, accuses the state Utilities and Transportation Commission of overstepping its authority and undercutting the company's ability to speak to and serve customers.
The company also has asked U.S. District Judge Barbara Rothstein for a preliminary injunction preventing the state from imposing the new rules while the litigation is pending. The judge has not ruled on that request.
"Their rules really tie our hands," said Melissa Barran, spokeswoman for Verizon Northwest in Everett.
The Utilities and Transportation Commission adopted the rules Nov. 7. They are stricter than revised FCC regulations adopted in July, which require telephone companies to give their customers an opportunity to be taken off marketing lists, but do not require customers' express approval to use account information for internal marketing purposes.
Those regulations reversed a congressional provision that had allowed companies to use information only from customers who "opted in," specifically allowing the information to be shared.
Glenn Blackmon, the UTC's assistant director for telecommunications, defended the state's new rules, saying they were designed to be respectful of the business needs of telephone companies and the privacy of consumers.
Verizon, which operates in 29 states and the District of Columbia, never intended to sell customer information, Barran said, calling the marketing restrictions untenable and confusing to customers.
"Privacy is definitely an issue to be taken seriously," Barran said. "When we look at our data, we are not looking at the fact that Jane Smith is calling her dry cleaners. We would never do that; it's just not practical. We do look at the area code and the prefix, and with that information we try to determine what services might help you."
The lawsuit alleges that the state's new rules do not advance any privacy interests, are overly broad and restrict the company's First Amendment right to speak with customers about products and services.
"The practical effect of the rules is to ban all analysis and discussion of individual customer consumption patterns, both for research development purposes and for target marketing to particular customers," the lawsuit states.
The state rules stemmed from complaints from hundreds of Qwest Communications customers, who called state regulators to complain about letters notifying them their account information would be shared with other companies.
Qwest quickly reversed its data-sharing policy in all 14 states it serves.
The rules, set to take effect Jan. 1, bar telephone companies from selling customers' calling records or using them to market anything but telecommunications services without customers' permission.
Verizon's lawsuit, filed in U.S. District Court on Thursday, accuses the state Utilities and Transportation Commission of overstepping its authority and undercutting the company's ability to speak to and serve customers.
The company also has asked U.S. District Judge Barbara Rothstein for a preliminary injunction preventing the state from imposing the new rules while the litigation is pending. The judge has not ruled on that request.
"Their rules really tie our hands," said Melissa Barran, spokeswoman for Verizon Northwest in Everett.
The Utilities and Transportation Commission adopted the rules Nov. 7. They are stricter than revised FCC regulations adopted in July, which require telephone companies to give their customers an opportunity to be taken off marketing lists, but do not require customers' express approval to use account information for internal marketing purposes.
Those regulations reversed a congressional provision that had allowed companies to use information only from customers who "opted in," specifically allowing the information to be shared.
Glenn Blackmon, the UTC's assistant director for telecommunications, defended the state's new rules, saying they were designed to be respectful of the business needs of telephone companies and the privacy of consumers.
Verizon, which operates in 29 states and the District of Columbia, never intended to sell customer information, Barran said, calling the marketing restrictions untenable and confusing to customers.
"Privacy is definitely an issue to be taken seriously," Barran said. "When we look at our data, we are not looking at the fact that Jane Smith is calling her dry cleaners. We would never do that; it's just not practical. We do look at the area code and the prefix, and with that information we try to determine what services might help you."
The lawsuit alleges that the state's new rules do not advance any privacy interests, are overly broad and restrict the company's First Amendment right to speak with customers about products and services.
"The practical effect of the rules is to ban all analysis and discussion of individual customer consumption patterns, both for research development purposes and for target marketing to particular customers," the lawsuit states.
The state rules stemmed from complaints from hundreds of Qwest Communications customers, who called state regulators to complain about letters notifying them their account information would be shared with other companies.
Qwest quickly reversed its data-sharing policy in all 14 states it serves.