May 24, 2006

The Federal Communications Commission said it will not investigate whether telephone companies violated consumer-privacy laws by reportedly releasing millions of phone records to a U.S. spy agency.

In a letter released Tuesday, FCC Chairman Kevin Martin said an inability to obtain classified material would prevent the agency from looking into a newspaper report that AT&T Inc., Verizon Communications Inc. and BellSouth Corp. handed over call records to the National Security Agency.

“The classified nature of the NSA’s activities makes us unable to investigate the alleged violations,” Martin said. “The commission has no power to order the production of classified information.”

Martin’s letter came in response to a request from Rep. Edward Markey, (D-Mass.), to look into a USA Today report that the three telecom companies handed over call records to the spy agency.

Verizon and BellSouth denied turning over the records, and BellSouth has demanded the newspaper retract the story.

The FCC can fine phone companies more than $1 million for violating the 1934 Communications Act, which requires carriers to protect customer confidentiality unless the disclosure is in response to a court order or is approved by the consumer.

Earlier this year, the FCC proposed fining AT&T and Alltel Corp. $100,000 each after private companies were found to be selling phone records over the Internet.

Martin’s refusal drew a pointed rebuke from Markey, who called for congressional intervention.

“The FCC has taken a pass at investigating what is estimated to be the nation’s largest violation of consumer privacy ever to occur,” Markey said in a prepared statement.

“If the FCC initiates an investigation and gets blocked by the White House, then the White House is stonewalling.

But if the FCC refuses to even demand answers, then the White House never has to block the enforcement agency from getting to the bottom of this.”

Source: RCR