FCC Fines Company That Tracked Freight Cars

The Federal Communications Commission has fined a New York-based data company $195,000 for setting up unauthorized freight car trackers near railroad tracks around the nation.

train image2The FCC determined that ClipperData LLC violated federal law because it was installing and operating automatic equipment identification (AEI readers) without a proper license.

When ClipperData was found to have installed the readers last summer, it insisted that what it was doing was legal and that it planned to sell the information that it gleaned.

However, railroad officials contended that the company had trespassed in order to set up the tracking devices.

The FCC determined that ClipperData only had a license to install and operate one AEI reader but had at least 39 unlicensed devices set up.

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