The Federal Communications Commission (FCC) is proposing a
$25,000 fine against Hilton Worldwide
for allegedly obstructing an FCC probe into alleged WiFi-blocking efforts by
the hotel company.
The FCC alleges that Hilton attempted to obstruct a probe
into whether it tried to block consumers’ WiFi devices, and said that the
company may receive “a significantly higher fine” if the company fails to
provide the requested information.
Hilton said that it “strongly” disagrees with the FCC’s action.
“Hilton supports open access to private WiFi networks for
our customers through their personal devices, while at the same time protecting
their personal information. We have a policy in place that states our
commitment to secure open access and prohibits hotels from blocking WiFi, and
it is repeatedly communicated to all properties,” Hilton said in a statement.
“Throughout this inquiry, we have cooperated with the FCC, providing extensive
background and details in a timely and efficient manner. We believe that the
FCC has no basis for vastly expanding the initial inquiry based on a single
complaint at a single Hilton hotel.”
The probe stemmed from an August 2014 complaint from a guest
who stayed at the Hilton Anaheim, which is next to the California city’s
convention center and across the street from Disneyland and Disney’s California
Adventure theme parks.
A guest alleged that the hotel said it would block
customers’ WiFi hot spots unless the customers paid $500 to access Hilton’s
WiFi, according to the FCC. Last November, the FCC requested information about
Hilton’s WiFi practices, and said it still hasn’t received the requested
information.
The 1,576-room hotel,
the city’s largest, charges $15.15 for 24-hour guest WiFi access for as many as
three devices.
"Hotel guests
deserve to have their Wi-Fi blocking complaints investigated by the
Commission," said Travis LeBlanc, chief of the FCC Enforcement Bureau.
"To permit any company to unilaterally redefine the scope of our
investigation would undermine the independent search for the truth and the due
administration of the law."
Since last year, the
FCC has fined various hospitality entities more than $2 million for alleged
WiFi-blocking activities. Last fall, Marriott International agreed to pay
$600,000 to settle an FCC probe into the hotel company’s alleged effort to
prevent convention attendees from accessing their private WiFi services.
The FCC’s
investigation was spurred by a March 2013 complaint from a convention attendee
at the Gaylord Opryland in Nashville, a Marriott-managed property. The FCC said
that that Marriott blocked and disabled, or “jammed,” attendees’ personal WiFi
networks for their mobile devices.
While agreeing to the
settlement, Marriott said its actions were lawful and were conducted in the
name of stopping cybercrime and preventing its on-site service from being
compromised.
This year, the FCC
levied a $750,000 fine against WiFi network provider Smart City Holdings for
allegedly blocking WiFi access at “multiple” U.S. convention centers. Baltimore
Convention Center wireless-network operator M.C. Dean was fined $718,000 for
similar allegations.