Michigan Gov. Calls for Legislation to Prevent Unauthorized Sale, Release of Telephone Records

Last week, Michigan Governor Jennifer M. Granholm called upon the Michigan legislature to enact new criminal laws prohibiting the unauthorized sale or release of telephone records and other personal information by telecommunications service providers and information brokers. Granholm also asked the Michigan Public Service Commission to investigate whether telecommunications service providers in Michigan have permitted the unauthorized release of telephone records.

"Unauthorized use of phone records violates a person's privacy and creates serious threats to public safety," Granholm said. "The state of Michigan must send a clear message that the private, personal information of Michigan consumers is not a commodity and is not for sale."

Within the last two weeks, members of the Federal Communications Commission (FCC) and attorneys general in several states have called for swift action to prohibit the sale of private phone records and initiated investigations into several websites offering to sell phone records for around $100. The Electronic Privacy Information Center has filed with the FCC a list of 40 websites that offer phone records for sale.

Granholm indicated that the Department of State Police has already warned law enforcement officers throughout the state that their cellular phone records may be available for purchase on the Internet.

Legislation proposed by Granholm, applicable to both cellular and land line providers, would:

• prohibit a telecommunications service provider from releasing or selling customer information without the consent of the customer;
  
  
• make it a crime to obtain customer information from a telecommunications service provider by providing false information or false pretenses;
  
  
• criminalize the unauthorized sale or release by brokers of telecommunications service account records, identifying information, or personal data relating to Michigan residents or businesses; and
  
  
• require telecommunications service providers to maintain appropriate measures to safeguard consumer privacy and notify consumers of any security breaches or unauthorized release of information.

In addition to the call for legislation, Governor Granholm has also asked the Michigan Public Service Commission (MPSC) to identify how information brokers on the Internet are accessing consumer records. MPSC Chair J. Peter Lark expressed his concern about the apparent infringement of individual privacy rights and urges quick legislative action saying, "We'll be looking at how these websites are getting this information and whether Michigan telecommunications providers have improperly released sensitive personal information about their customers without permission."

Granholm's proposal has been submitted to the Legislative Service Bureau for introduction in the House of Representative and the Senate.