American telecomm operator Verizon Communications has agreed to pay $7.4 million in a settlement deal for violating their customers' privacy, CNN reported.

According to the Federal Communications Commission (FCC), the organization which imposed the fine, the company failed to notify its over 2 million clients that it was using their personal information such as browsing habits, age and location, for marketing purposes.

In addition, the customers were not made aware by Verizon that they have the option to inform the company to not be included in its marketing campaign.