On October 25, 2024, the Federal Communications Commission (FCC) Enforcement Bureau announced a settlement with AT&T, Inc. following an investigation into potential violations of the Emergency Broadband Benefit (EBB) Program and Affordable Connectivity Program (ACP) rules. AT&T has agreed to pay $2,299,990 in a combined civil penalty and reimbursement, while committing to a multi-faceted compliance plan to strengthen its adherence to FCC program requirements. The settlement was reached through a Consent Decree issued by the Enforcement Bureau, where the alleged violations were resolved without admission of liability.
Background on the FCC Programs
The EBB Program and ACP were designed to aid low-income households in obtaining affordable internet services, especially critical during the COVID-19 pandemic. These programs require strict adherence to eligibility verification, usage validation, and accurate record-keeping to ensure that funds are appropriately distributed. The FCC’s Enforcement Bureau launched an investigation into AT&T’s practices under these programs, identifying several alleged violations, though no violations were definitively proven.
Alleged Violations
- Duplicate and Invalid Enrollments:
The FCC alleged that AT&T enrolled 3,912 subscribers using duplicate or invalid identifiers, potentially undermining program integrity by allowing multiple enrollments for individuals who may not have met eligibility requirements. This allegation highlights potential weaknesses in AT&T’s verification processes and data management controls under the EBB and ACP. - Failure to Obtain Required Representative Accountability Database (RAD) Numbers:
Certain AT&T in-store representatives reportedly failed to acquire mandatory RAD identification numbers when enrolling customers, as required by program rules. This procedural lapse allegedly affected more than 220 subscriber enrollments. RAD numbers are crucial for tracking representatives responsible for enrollments, and the absence of these records raised concerns regarding enrollment accountability. - Non-Usage Violation:
AT&T allegedly claimed reimbursement for 3,289 ACP subscribers who demonstrated over 45 consecutive days of non-usage. Program rules require service providers to verify regular usage to confirm ongoing eligibility. Non-usage is a critical indicator of ineligibility, and this alleged infraction suggested insufficient monitoring mechanisms within AT&T’s ACP protocols.
Consent Decree
The Consent Decree between the FCC and AT&T establishes several terms aimed at ensuring future compliance and accountability in AT&T’s participation in federal benefit programs.
AT&T agreed to a total payment of $2,299,990, which includes a civil penalty of $1,921,068 and reimbursement of $378,922 to the U.S. Treasury to cover funds associated with the alleged violations.
In addition to the monetary penalty, the settlement includes a series of comprehensive compliance measures designed to ensure AT&T’s adherence to program requirements and to prevent future issues.
- Enhanced Training Programs:
AT&T must develop and implement regular training programs for all employees involved in EBB and ACP enrollments. This training will focus on eligibility verification, usage monitoring, and accurate reporting to ensure alignment with FCC rules.
- Strengthened Oversight and Review:
The compliance plan mandates periodic internal reviews and audits of enrollment and usage verification processes to detect and correct any procedural gaps. Enhanced monitoring procedures will help prevent lapses similar to those alleged in the investigation.
- Verification of Representative Credentials:
AT&T is required to maintain a robust process for tracking RAD identification numbers and verifying representatives involved in program enrollments. This measure is intended to prevent unauthorized enrollments and improve enrollment accountability.
- Dedicated Compliance Reporting:
AT&T must submit detailed compliance reports to the FCC’s Enforcement Bureau at regular intervals. These reports will provide updates on AT&T’s adherence to program rules and identify any instances of noncompliance.
- Reporting Obligations:
Notification of Non-Compliance: AT&T must promptly report any significant non-compliance with the EBB or ACP rules, including any violations detected through internal audits. These reports will allow the FCC to monitor AT&T’s continued compliance and take corrective action if necessary.
- Annual Compliance Certification:
AT&T is also required to submit an annual compliance certification, signed by a senior corporate officer, affirming that all personnel and systems involved in EBB and ACP participation are in full compliance with the established rules and the Consent Decree’s requirements.
Implications for Compliance and Next Steps
For telecommunications providers participating in the ACP or similar FCC programs, this settlement underscores the importance of stringent internal controls and robust compliance protocols. Service providers should ensure that all enrollments are verified using valid and unique identifiers, while also verifying that representatives are properly credentialed with RAD numbers. In addition, providers must implement comprehensive usage monitoring to track subscriber activity and detect periods of non-usage, which may indicate ineligibility. Furthermore, it is essential for providers to enhance employee training programs, covering federal program requirements such as enrollment eligibility, usage verification, and data management, in order to maintain compliance and avoid future liabilities.
CONTACT US NOW if you have questions about data privacy obligations under federal laws and FCC rules
Jonathan S. Marashlian – Tel: 703-714-1313 / E-mail: jsm@CommLawGroup.com
Michael Donahue — Tel: 703-714-1319 / E-mail: mpd@CommLawGroup.com
