The US Federal Trade Commission (FTC) has settled with two data brokers, Mobilewalla and Gravy Analytics, over allegations that they used location data without consent. The settlements mark the first time the FTC has banned the use of location data gathered through online ad auctions.
Mobilewalla was accused of collecting data from hundreds of millions of mobile devices through online advertising platforms. The company agreed to stop gathering information for purposes other than bidding on ads, and will instead provide opt-out mechanisms for individuals.
Gravy Analytics also agreed to stop selling sensitive location data to government agencies, raising constitutional concerns among FTC commissioners. However, some Republican commissioners partially supported the settlements, citing that attendance at public protests may not be considered sensitive information.
The FTC’s crackdown on data brokers comes as part of the Biden administration’s efforts to address privacy concerns in the industry. The agency has proposed new rules to rein in the industry and limit its use of location data.
FTC Chair Lina Khan emphasized the importance of further attention from policymakers, stating that the multi-billion-dollar industry built around targeted advertising may leave Americans’ sensitive data exposed.
Source: https://www.reuters.com/technology/cybersecurity/ftc-settles-with-data-brokers-that-sold-political-pregnancy-info-2024-12-03