FCC Fines Smart City $750,000 for Blocking Consumers’ Wi-Fi in Convention Centers

August 19, 2015

Cracking down ever further, the Federal Communications Commission recently fined Smart City $750,000 for blocking consumers’ Wi-Fi at various convention centers around the United States.

Last year, the FCC also fined Marriott International $600,000 for illegally blocking personal users’ Wi-Fi signals at its Gaylord Opryland Hotel and Convention Center property in Nashville.

Smart City, an Internet and telecommunications provider for conventions, meeting centers and hotels, had been blocking personal mobile “hotspots” that were being used by convention visitors and exhibitors who used their own data plans, rather than paying Smart City’s fees to use the company’s Wi-Fi service, according to FCC officials. 

“It is unacceptable for any company to charge consumers exorbitant fees to access the Internet while at the same time blocking them from using their own personal Wi-Fi hotspots to access the Internet,” said Travis LeBlanc, chief of the FCC’s Enforcement Bureau.

He added, “All companies who seek to use technologies that block FCC-approved Wi-Fi connections are on notice that such practices are patently unlawful.”

In providing service at convention centers, Smart City charged exhibitors and visitors a fee of $80 to access the company’s Wi-Fi services for a single day.

The FCC’s investigation revealed that, if exhibitors or visitors to the convention centers did not pay this $80 fee, Smart City would automatically block users from accessing the Internet when they instead attempted to use their personal cellular data plans to establish mobile Wi-Fi networks – or “hotspots” – to connect their Wi-Fi-enabled devices to the Internet.

As part of the settlement, Smart City will cease its Wi-Fi blocking activities and will pay a $750,000 civil penalty.

Mark Haley, president of Smart City, said in a statement that the company was not “gatekeepers to the Internet.”

He added, “As recommended by the Department of Commerce and Department of Defense, we have occasionally used technologies made available by major equipment manufacturers to prevent wireless devices from significantly interfering with and disrupting the operations of neighboring exhibitors on our convention floors. This activity resulted in significantly less than one percent (1 percent) of all devices being deauthenticated and these same technologies are widely used by major convention centers across the globe, as well as many federal agencies.”

Haley said that Smart City had acted on good faith and did not have prior notice that the FCC considered the “use of this standardized, ‘available-out-of-the-box’ technology to be a violation of its rules.”

He added that when contacted by the FCC in October 2014 the use of the technology was halted.

Citing what would need to be a “vigorous defense” that likely would be costly, Haley said instead, they have “chosen to work cooperatively with the FCC, and we are pleased to have resolved this matter.”

The settlement with Smart City came about after the FCC received an informal complaint in June 2014 that consumers could not connect to the Internet at several venues where Smart City provided Wi-Fi service.

The Enforcement Bureau’s investigation revealed that Smart City automatically blocked consumers from using their own “rogue” Wi-Fi networks at several convention centers the company serves, including the convention centers in Cincinnati, Ohio; Columbus, Ohio; Indianapolis, Indiana; Orlando; and Phoenix.

No evidence exists that the Wi-Fi blocking occurred in response to a specific security threat to Smart City’s network or the users of its network, according to the FCC.

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Overview: The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality. In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way. “We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.” Amenities: The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.  The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need. Gold Key Members The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events. OCCC Events: This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.  The Center’s top five events during their 2022-2023 fiscal year included:  AAU Jr. National Volleyball Championships 2023 200,000 Attendees $257 Million in Economic Impact MEGACON 2023 160,000 Attendees $205 Million in Economic Impact Open Championship Series 2023 69,500 Attendees $89 Million in Economic Impact Sunshine Classic 2023 42,000 Attendees $54 Million in Economic Impact Premiere Orlando 2023 42,000 Attendees $108 Million in Economic Impact