FTC Continues Crackdown on Data Brokers Selling Sensitive Location Data in 2024

The Federal Trade Commission (FTC) is cracking down on data brokers who sell sensitive location data that could potentially harm individuals. In 2022, the FTC sued data broker Kochava for selling data that could tie individuals to sensitive locations. This was a warning to the advertising industry, and in 2024, the FTC continues to focus on data brokers and the sale of location data.

Recently, the FTC announced settlements with two data brokers, Outlogic (formerly X-Mode) and InMarket, prohibiting them from selling sensitive location data. The FTC found that both companies violated the FTC Act in separate complaints. FTC Chair Lina Khan emphasized the importance of protecting consumer privacy and preventing firms from monetizing data tracking people’s precise location.

The FTC’s interest in the data broker industry stems from a 2022 executive order signed by President Joe Biden to protect the privacy of individuals seeking reproductive healthcare. Both InMarket and X-Mode/Outlogic asked consumers for consent to collect their data, but the FTC alleges that they failed to fully inform consumers about how their data would be used.

Privacy lawyer Odia Kagan noted that the focus is on the sensitivity of the data, mass surveillance, and monetization, and not just limited to data brokers. The FTC has defined sensitive locations to include places like medical care facilities, reproductive health providers, and locations associated with political or social demonstrations.

The FTC’s actions have implications for the entire industry, as companies like FourSquare, Precisely, and Cuebiq have voluntarily adopted guidelines to restrict the use of sensitive location data. However, other major players like Google, Gravy Analytics, and Oracle Advertising have not publicly endorsed these guidelines.

The FTC’s efforts to regulate the sale of sensitive location data highlight the importance of protecting consumer privacy and ensuring transparency in data collection practices. As the commission continues to focus on data brokers, the industry as a whole must pay attention to these developments to safeguard consumer data and prevent potential harm.