FTC Cracks Down: Bans Data Brokers from Selling Sensitive Location Data
In a landmark move, the U.S. Federal Trade Commission (FTC) has banned two major data brokers from collecting and selling Americans’ sensitive location data. The settlements mark a significant step in protecting consumer privacy amid growing concerns over unauthorized data tracking.
Key Takeaways
- FTC action: Gravy Analytics and Mobilewalla prohibited from collecting sensitive location data
- Violations: Companies allegedly tracked visits to healthcare facilities, military bases, and places of worship
- New requirements: Must delete historical data and implement sensitive location protection programs
- Broader trend: Part of increasing government scrutiny of data broker practices
The FTC’s Case Against Data Brokers
The FTC announced settlements on Tuesday with:
1. Gravy Analytics (and subsidiary Venntel)
- Location: Virginia-based
- Allegations:
- Collected and sold granular location data without consumer consent
- Derived sensitive information (health, political, religious data) from location patterns
- Continued using data after learning consent wasn’t obtained
2. Mobilewalla
- Location: Georgia-based
- Allegations:
- Obtained data through real-time bidding exchanges without user knowledge
- Failed to anonymize data or filter sensitive locations
- Created targeted advertising segments based on protest participation
What Constitutes “Sensitive Location Data”?
The settlements specifically protect data revealing visits to:
- Healthcare facilities
- Religious organizations
- Schools and educational institutions
- Correctional facilities
- Military bases
- Domestic abuse shelters
Settlement Requirements
Both companies must now:
- Immediately cease all collection of sensitive location data
- Delete existing sensitive location data in their possession
- Implement comprehensive programs to:
- Identify and catalog sensitive locations
- Prevent future collection/sale of related data
- Establish oversight to ensure compliance
Broader Implications
This action comes as part of increased regulatory focus on data privacy:
- The Consumer Financial Protection Bureau recently proposed rules to block sale of personal/financial data
- Reflects growing concern about commercial exploitation of sensitive location information
- Sets precedent for future enforcement against data brokers
Why This Matters
Location data can reveal:
- Medical conditions (via clinic visits)
- Religious/political affiliations
- Personal relationships
- Daily routines and vulnerabilities
Unauthorized collection and sale of this information creates significant privacy risks for millions of Americans.
Note: Neither company responded immediately to requests for comment.
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