January 21, 2002 -- Michigan Attorney General Jennifer M. Granholm urged residential customers of SBC/Ameritech to pay close attention to privacy notices the company is currently distributing in its monthly billing statements. The notice, says Granholm, is easily missed but is critical for consumers who do not want their personal information, including their telephone habits and histories, sold to other companies that may use the information for telemarketing or direct mail advertising.

The notice - a small, nondescript slip of paper accompanying recent Ameritech telephone bills -- tells consumers they should call the company within 30 days if they do not wish to have their personal information shared with third parties. According to the insert, the information at issue includes the types of services a consumer might have ordered from Ameritech or its affiliates, billing information, and "usage information" about how the consumer uses their telecommunication services. The insert states that SBC/Ameritech may share this customer information, collected by Ameritech and other companies in the SBC family of companies, with affiliated companies and "authorized agents" for marketing "other products and services."

Granholm said: "At best, the notice is unclear and raises troubling questions for consumers. What if you don't call? What personal information is the company planning to share? Who are these 'authorized agents'? What other kinds of products and services will they be marketing and how? At worst, the notice is so nondescript that many customers will probably throw it away before they even get to ask these questions. Consumers must be aware of the notices so they can actively participate in the decisions being made about their personal information."

She added: "The whole idea that a company can freely market their customers' sensitive or personal information unless a customer expressly tells them not to is troubling to me and should be troubling to anyone who values personal privacy."

The untitled notice begins, "SBC/Ameritech, its affiliates and authorized agents would like to offer you products and services ..." Only consumers who read further will find, on the reverse side of the bill insert, that they should call the toll-free number within 30 days if they do not want SBC/Ameritech to use their service and usage information to sell them products and services. The notice doesn't identify the parties to whom Ameritech may give consumers' information, doesn't clearly identify the types of personal information it proposes to share, and doesn't provide any information about consumers' options if they fail to call Ameritech within the 30-day period.

Federal law does not allow the use of certain customer information collected by telecommunication carriers, including information about calls made, without the "approval" of the consumer. In December, Granholm was one of 39 Attorneys General from across the country who urged the Federal Communications Commission to adopt a rule requiring telephone providers to obtain a customer's affirmative consent before personal information is sold to or shared with other companies for the purpose of marketing unrelated products and services. Granholm and the other Attorneys General took the position that opt-out notices, such as the Ameritech bill insert, do not adequately ensure customer "approval" to information sharing because they are neither read nor understood by the vast majority of consumers.

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