The FTC cracks down on data brokers selling sensitive location data in a groundbreaking move to protect Americans’ privacy.
This week, the Federal Trade Commission (FTC) announced settlements with Gravy Analytics and Mobilewalla, two companies accused of illegally collecting and selling sensitive location data without consent.
These data brokers were reportedly tracking millions of Americans near critical locations such as hospitals, military bases, and places of worship.
Key Takeaway to FTC Cracks Down on Data Brokers Selling Sensitive Location Data:
- The FTC’s settlements prohibit these companies from collecting or selling sensitive location data and require them to delete all previously collected data, marking a significant step forward in consumer data privacy.
What Did the FTC Find?
The FTC revealed that both companies violated consumer privacy laws by selling detailed location data without proper consent.
This data included sensitive information about where individuals went and what activities they engaged in, raising serious ethical and legal concerns.
Gravy Analytics Violations
- Sold precise location data tied to visits to sensitive locations like medical facilities and religious institutions.
- Used this data to make assumptions about individuals’ health, political views, and religious affiliations.
- Continued data collection even after learning users did not provide informed consent.
Mobilewalla’s Missteps
- Collected location data through third-party aggregators and real-time bidding systems, bypassing user consent.
- Failed to anonymize data, leaving individuals identifiable.
- Analyzed sensitive data for advertising purposes, including a controversial report profiling racial demographics of George Floyd protesters in 2020.
What the FTC Settlement Requires
The settlements impose strict new rules for these companies, signaling that the FTC crackdown on data brokers selling sensitive location data will have serious consequences.
| Settlement Terms | Details |
|---|---|
| End Data Collection | Both companies must stop collecting and selling sensitive location data. |
| Delete Existing Data | All historical data tied to sensitive locations must be permanently deleted. |
| Implement Privacy Programs | Companies must establish programs to identify and safeguard sensitive locations like hospitals and schools. |
| Prohibit Targeting Based on Location Data | Data brokers can no longer use sensitive location data to develop advertising audiences. |
Why This Is a Big Deal
The FTC cracks down on data brokers selling sensitive location data at a time when public concerns about digital privacy are growing.
Imagine your visits to a therapist, a doctor, or even a place of worship being tracked and sold without your knowledge. This isn’t just a breach of privacy, but an invasion of personal safety and freedom.
A similar incident happened in 2018 when a fitness tracking app, Strava, gave away the location of secret U.S. Army base locations tied to U.S. military bases. This raised alarms about national security risks and highlighted the lack of regulation in the data broker industry.
How Does This Impact You?
This ruling is a win for consumer privacy, but it also highlights how vulnerable we all are to data misuse. While the FTC’s actions target Gravy Analytics and Mobilewalla, many other data brokers operate in the same way.
This decision sets a precedent, but it’s up to individuals to stay vigilant.
How You Can Protect Your Data
- Limit App Permissions: Only allow apps to access your location when necessary.
- Opt for Privacy-Focused Apps: Use apps and browsers that prioritize user privacy.
- Stay Informed: Follow news on data privacy and understand your rights as a consumer.
A Broader Push for Privacy Protections
The FTC cracks down on data brokers selling sensitive location data as part of a larger effort by the U.S. government to protect consumers. On the same day, the Consumer Financial Protection Bureau (CFPB) proposed a rule to stop data brokers from selling personal financial information, including Social Security and phone numbers.
These actions reflect a growing commitment to regulating how companies handle sensitive personal information.
About Gravy Analytics and Mobilewalla
Gravy Analytics: A Virginia-based company providing location intelligence services for businesses and government agencies. Its practices have drawn criticism for their lack of transparency and potential ethical violations.
Mobilewalla: Based in Georgia, Mobilewalla specializes in consumer data analytics and audience targeting. The FTC’s findings highlighted significant flaws in its data collection and privacy practices.
Conclusion: A Milestone for Consumer Privacy
The FTC’s crackdown on data brokers selling sensitive location data marks a major milestone in the fight for digital privacy. This decision not only protects millions of Americans but also sets a strong precedent for how data brokers should operate moving forward.
However, the battle for privacy is far from over. Both individuals and policymakers must remain vigilant as technology continues to evolve.
FAQs
What is the significance of this FTC decision?
The ruling holds data brokers accountable and ensures that sensitive location data is no longer collected or sold without consent.
What kind of data was being collected?
Gravy Analytics and Mobilewalla tracked visits to sensitive locations like hospitals, religious institutions, and private homes.
How can I protect my location data?
Limit app permissions, use privacy-focused tools, and stay informed about data privacy laws.
What happens if the companies violate the settlement terms?
They could face significant penalties and additional legal actions.
Does this ruling affect other data brokers?
While this case targets specific companies, it sets a precedent that could influence the entire data broker industry.
