FTC Bans InMarket from Selling Consumer Location Data in Landmark Settlement
FTC Cracks Down on Data Broker Over Privacy Violations
The U.S. Federal Trade Commission (FTC) has intensified its campaign against data brokers, reaching a settlement that prohibits InMarket from selling consumers’ precise location data. This marks another significant step in the regulator’s efforts to protect consumer privacy in the digital age.
Who Is InMarket?
Texas-based InMarket, originally launched as CheckPoints at TechCrunch Disrupt 2010, operates a marketing platform that collects:
- Precise location data
- Purchasing history
- Detailed demographic information
This sensitive data enables brands and advertising agencies to target specific consumer groups, including:
- Low-income millennials
- Christian churchgoers
- Other demographic segments
The FTC’s Allegations
The FTC’s proposed order, announced Thursday, makes several key claims against InMarket:
- Lack of Proper Consent: Failed to obtain user consent before using location data for marketing
- Deceptive Practices: Used misleading prompts in its own apps (ListEase and CheckPoints)
- Inadequate Oversight: Did little to verify proper notification in third-party apps using its SDK
“Consumers would never know that granting location permission to a photo-editing app could allow an unknown third-party to amass sensitive data about them,” the FTC stated.
The Scope of Data Collection
According to FTC findings:
- InMarket’s apps have been downloaded on over 30 million unique devices since 2017
- Its SDK has been integrated into more than 300 third-party apps
- These apps have been installed on over 390 million devices
- The company maintained a controversial five-year data retention policy
Settlement Terms
The landmark settlement imposes strict requirements on InMarket:
- Complete ban on selling, licensing, or sharing products based on sensitive location data
- Mandatory data destruction of all previously collected location information
- Consumer notification requirement for affected users
- Opt-out mechanism must be provided to users
Industry Implications
This action follows closely on the heels of the FTC’s settlement with X-Mode (now Outlogic), signaling a clear regulatory trend:
- Increased scrutiny of data brokers
- Stricter enforcement of consumer privacy protections
- Potential industry-wide changes in data collection practices
Company Response
InMarket’s Chief Legal Officer Jason Knapp stated:
“While we fundamentally disagree with the FTC’s allegations, we’re reaffirming our commitment to data disclosure policies. We have no interest in selling location data and are implementing enhanced protections to serve as an industry model.”
The company emphasized it’s working with SDK partners to improve consent processes.
The Bigger Picture
This settlement represents:
- The FTC’s growing focus on location data privacy
- Increasing regulatory pressure on the data broker industry
- A potential shift in how consumer data can be collected and used
As digital privacy concerns continue to grow, this case may set important precedents for future regulatory actions in the data brokerage space.
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