Over at our Tech Policy Greenhouse, former FCC official and consumer advocate Gigi Sohn just got done discussing a landmark privacy case in Maine that hasn’t been getting enough attention. The short version: back in 2017, the GOP killed some pretty modest FCC broadband privacy rules at the telecom lobby’s behest. Despite a lot of whining from telecom giants, those rules weren’t particularly onerous — simply requiring that ISPs be transparent about what data they’re collecting and who they’re selling access to, while requiring that users opt in to the sharing of more sensitive financial data.
Much like net neutrality, federal lobbying by telecom giants had an unintended impact: namely once the feds showed they were too corrupt and captured to protect consumers, states began passing their own laws (some good, some bad) in order to fill the consumer protection void. On both the privacy and net neutrality fronts, giant ISPs like AT&T and Comcast cried repeatedly about how this created a “discordant and fractured framework of state protections,” hoping you’d ignore this was a problem the industry itself created by relentlessly attacking even the most modest federal guidelines.
Last year, Maine passed one such privacy bill modeled after the discarded FCC rules. Again the focus was largely on requiring that ISPs be transparent about what data is collected and who is buying access to it, while requiring that users opt in to the share and sale of access to more sensitive data. It also banned ISPs from charging you more money just to opt out of snoopvertising, something AT&T has already experimented with. The law was not, as telecom giants and their dollar per holler allies have claimed, particularly onerous.
Comcast and AT&T sued anyway in a bid to have the law thrown out before a broader trial. In short, ISP lawyers tried to argue that giving consumers control over their own data violates ISPs’ First Amendment right to market goods and services. They also claimed that by passing a privacy law that specifically targeted telecom providers, the law is based on their status as a “speaker” and should be subject to “strict scrutiny” under the First Amendment, which requires a law to be “narrowly tailored to serve a compelling state interest.”
Things didn’t quite work out as Comcast and AT&T had hoped. This week, a Maine court shot down AT&T and Comcast’s attempt to have Maine’s law trashed, ruling in favor of Maine Attorney General Aaron Frey, who had argued that Maine’s law “regulates a space Congress explicitly left open, and any conflict is a figment of Plaintiffs’ imaginative pleading.” In the ruling, Judge Lance Walker noted that Maine’s privacy law can’t conflict with federal guidelines, because the industry and government worked hand in hard to eliminate said guidelines.
More at Tech Dirt.