The FTC prohibits two data brokers from selling 'sensitive' location information.
Surveillance driven by advertisements and applications.
The Federal Trade Commission (FTC) has decided to prohibit data brokers Gravy Analytics and Mobilewalla from collecting, using, and selling information on the "sensitive" location of U.S. citizens, as announced on Tuesday. The FTC focused on Gravy Analytics, its subsidiary Venntel, and Mobilewalla for alleged violations of the FTC Act by collecting and marketing information that could be used to track individuals in healthcare facilities, military bases, religious sites, labor union meetings, and other critical locations.
According to the FTC, Mobilewalla “primarily relied on consumer information that the company collected from real-time bidding exchanges” while participating in the auction to display personalized ads on mobile devices and subsequently retained tracking data that identifies individuals. Additionally, they acquired information from various sources and used additional data to build profiles linked to each advertising ID. This combination of data, according to the complaint, allowed Mobilewalla to create audience segments targeting pregnant women and conduct analysis on individuals who attended protests following George Floyd's death.
On the other hand, Venntel's scheme is described as collecting location data through common mobile apps, which are then sold to other companies or government agencies. Reports indicate that the IRS, DEA, FBI, CBP, and ICE have purchased data from Venntel.
Now, the companies must comply with the order not to "sell, disclose, or use sensitive location data in any product or service" and must establish a sensitive location data program. The proposed settlement order for Mobilewalla will prohibit the company from:
- Misrepresenting how it collects, maintains, uses, deletes, or discloses consumers' personal information, as well as the extent to which consumers' locations are de-identified.
- Using, transferring, selling, or disclosing sensitive location data from health clinics, religious organizations, correctional facilities, union offices, LGBTQ+ spaces, political gatherings, and military bases.
Senator Ron Wyden of Oregon, who led efforts to address a gap that allowed data brokers to sell sensitive personal information, praised the FTC and CFPB for limiting what these companies can collect. In a statement sent to The Verge, Wyden emphasized that these companies could sell information about “law enforcement agents, judges, and military personnel in the open market” to “anyone with a credit card,” putting citizens and military personnel at risk.
Wyden also commented that U.S. government agencies were spying on Americans by obtaining this data without a warrant. "Many federal agencies hid behind the flimsy assertion that Americans consented to the sale of their data, but the FTC orders make it clear how false these claims were," Wyden stated.
