The New Bush Economic Plan

I admit I've been in a bitter funk as a result of contemplating the latest, most absurd Republican tax cuts, as just passed by the Senate. I've seen a very convincing charts that show how the benefits of these cuts are dramatically skewed not just toward the rich, but the very, very rich. There is lots of news out there to convince one that Bush and the Republicans are really out to screw the common man financially.

But now, I see, they may have invented a radical new way to redistribute money widely in our country. Think Progress brings news that makes me think we're all due to receive at least $1000! (Thank you, Verizon Wireless!)

This morning, USA Today reported that three telecommunications companies – AT&T, Verizon and BellSouth – provided “phone call records of tens of millions of Americans” to the National Security Agency. Such conduct appears to be illegal and could make the telco firms liable for tens of billions of dollars. Here’s why:

1. It violates the Stored Communications Act. The Stored Communications Act, Section 2703(c), provides exactly five exceptions that would permit a phone company to disclose to the government the list of calls to or from a subscriber: (i) a warrant; (ii) a court order; (iii) the customer’s consent; (iv) for telemarketing enforcement; or (v) by “administrative subpoena.” The first four clearly don’t apply. As for administrative subpoenas, where a government agency asks for records without court approval, there is a simple answer – the NSA has no administrative subpoena authority, and it is the NSA that reportedly got the phone records.

2. The penalty for violating the Stored Communications Act is $1000 per individual violation. Section 2707 of the Stored Communications Act gives a private right of action to any telephone customer “aggrieved by any violation.” If the phone company acted with a “knowing or intentional state of mind,” then the customer wins actual harm, attorney’s fees, and “in no case shall a person entitled to recover receive less than the sum of $1,000.”

(The phone companies might say they didn’t “know” they were violating the law. But USA Today reports that Qwest’s lawyers knew about the legal risks, which are bright and clear in the statute book.)

I don't think I'll spend the money before the check gets here, but if I'd be worried if I held telco stock. Especially now that Trent Lott has confirmed that the NSA has been getting this data.