Verizon Communications Inc.
VZ
Communication Services
3
exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Class actions for billing rates above advertised prices via hidden "administrative charges"; deceptive "free phone" promotions resulting in hundreds of dollars in customer charges; $10M multi-state AG settlement (2024)
Verizon Communications Inc. operates a telecommunications network that collects and monetizes customer location data as a core business activity. The company’s privacy notice discloses the collection of a wide range of personal data, including precise geolocation, device identifiers, browsing history, and app usage data, which it uses for advertising and business intelligence.
This data monetization practice has resulted in significant regulatory penalties. In September 2025, the Second Circuit upheld a Federal Communications Commission order imposing a $46.9 million fine on Verizon. The penalty was for selling access to customers’ real-time location data to data aggregators without obtaining meaningful, affirmative consent, a violation that constituted 63 continuing days of non-compliance. This enforcement action followed earlier findings that Verizon and other carriers had failed to protect this sensitive information from unauthorized access.
Verizon Communications Inc. has a documented pattern of regulatory violations across multiple domains, indicating systemic compliance failures. The company is currently engaged in a significant legal challenge against the Federal Communications Commission, contesting the FCC's authority to impose fines. This Supreme Court case stems from FCC allegations that Verizon and other major wireless carriers illegally shared access to customer location data without consent. This follows a 2023 settlement where Verizon Business Network Services LLC paid to resolve False Claims Act allegations related to cybersecurity failures in its government contracts.
The pattern extends beyond telecommunications regulation. In 2022, Verizon Wireless paid $7.7 million to settle a lawsuit, adding to a history of financial settlements. The company also faces an active class action lawsuit filed by investor rights firm Rosen Law Firm, alleging securities fraud. Legal analysts note that Verizon's approach to regulatory compliance and financial reporting has drawn criticism for being "investor-unfriendly," with accusations of cherry-picking favorable metrics.
This repeated engagement with multiple regulatory bodies—the FCC, the Department of Justice, and securities regulators—across separate issues (data privacy, contract compliance, financial disclosures) demonstrates a recurring pattern of conduct that triggers enforcement. The escalation to a Supreme Court challenge over fundamental regulatory authority underscores a confrontational approach to compliance oversight.
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
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