FTC Bans Data Brokers from Selling Sensitive Location Data in Landmark Privacy Action

FTC bans major data brokers from selling sensitive location data, marking significant victory for consumer privacy rights and civil liberties protection.

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Key Takeaways

  • FTC prohibits data brokers from collecting and selling sensitive location data that could expose Americans to discrimination and harm
  • Companies must delete vast databases of historical location data and implement strict privacy protection measures
  • Action represents broader regulatory push to protect consumer privacy in digital age

Why it matters: The Federal Trade Commission has taken decisive action against major data brokers for unlawfully tracking and selling Americans’ sensitive location data, marking a significant step in protecting consumer privacy. As reported by 404media, this crackdown highlights growing concerns about surveillance capitalism and its impact on civil liberties.

The Big Picture: According to NBC, the FTC charged Gravy Analytics, its subsidiary Venntel, and Mobilewalla with collecting and selling location data that revealed visits to sensitive locations without proper consent. These companies processed massive amounts of personal data:

  • Over 17 billion daily signals from roughly 1 billion mobile devices
  • Tracked visits to healthcare facilities and places of worship
  • Monitored political activities and protests

Privacy Violations: The companies’ practices exposed consumers to serious risks:

  • Created detailed individual profiles without consent
  • Sold data to government agencies including FBI and IRS (The Verge)
  • Used geofencing to track people at sensitive locations

Enforcement Actions: The FTC’s order implements strict controls:

  • Companies banned from selling sensitive location data
  • Must delete historical data and derived products
  • Required to establish location data protection programs
  • Violations face penalties up to $51,744 per incident

Looking Forward: This marks the FTC’s fifth action this year addressing location data misuse, signaling increased regulatory scrutiny of data brokers. They are also probing Uber over subscription service complaints. The proposed orders are open for public comment for 30 days before finalization.

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