The Federal Trade Commission (FTC) has taken decisive action against InMarket Media, a Texas-based data aggregator, for allegedly selling consumers’ precise geolocation data without proper consent. This marks the first instance where the FTC has prohibited a company from selling or licensing such data. The regulator accused InMarket of collecting extensive location data from mobile apps, assuring users it would enhance app services without disclosing its use for targeted advertising.
InMarket reportedly categorized consumers into specific groups like “Christian churchgoers,” “parents of preschoolers,” and high-school students for advertisers. The FTC contended that InMarket failed to obtain informed consent from these individuals before deploying their data for advertising purposes.
The settlement mandates InMarket to cease selling or licensing the data and either delete all previously collected location data or take measures to anonymize it. While InMarket expressed fundamental disagreement with the allegations, it welcomed the settlement’s resolution and emphasized its commitment to reinforcing data disclosure policies.
This move by the FTC comes on the heels of its recent order against Outlogic (formerly X-Mode), another data broker, marking the first time the sale of “sensitive” location data has been banned. Sensitive locations include medical facilities, places of worship, prisons, schools, and domestic violence shelters.
Public awareness of the sensitivity of location data has grown, especially in the context of the Supreme Court’s recent decision on Roe v. Wade and state laws allowing the prosecution of abortion-seekers. Policy experts have raised concerns about location data potentially revealing individuals’ sought medical care. In response, companies like Google have adjusted their practices, reducing the retention time for location history and providing users with more control over their data.
The FTC’s scrutiny of data brokers aligns with its broader efforts to limit businesses’ collection and use of consumers’ personal information. The regulator aims to protect Americans from unchecked corporate surveillance and reinforce privacy measures in an era where data hoarding and exploitation have become prevalent.
