The Federal Trade Commission (FTC) has taken decisive action against data brokers Gravy Analytics and Mobilewalla, banning them from collecting, using, and selling sensitive location data of Americans. The FTC alleges that these companies violated consumer privacy by tracking and selling information that could reveal individuals' visits to healthcare facilities, military bases, places of worship, and other sensitive locations.

"Persistent tracking by data brokers can put millions of Americans at risk, exposing the precise locations where service members are stationed or which medical treatments someone is seeking," said FTC Chair LinaKhan.

The FTC's complaint highlights how Mobilewalla gathered data from real-time bidding exchanges used for online advertising, essentially tracking individuals as they browsed the internet on their mobile devices. The company then combined this data with information from other sources to create detailed profiles, including sensitive information like pregnancy status and attendance at political protests.

Venntel, a subsidiary of Gravy Analytics, collected location data from seemingly innocuous mobile apps and sold access to this data to businesses and government agencies, including the IRS, DEA, FBI, and ICE.

Under the FTC's orders, both companies are prohibited from selling, disclosing, or using sensitive location data in any product or service. They are also required to establish comprehensive data security programs to protect consumer information.

Senator Wyden Applauds FTC Action

Senator Ron Wyden (D-OR), a vocal advocate for privacy rights, praised the FTC's action, stating that these companies were selling sensitive information about law enforcement officials, judges, and military personnel to "anyone with a credit card," potentially endangering lives.

Wyden also criticized government agencies for exploiting a loophole to obtain this data without a warrant, emphasizing that the FTC's orders expose the false claims of consumer consent used to justify these practices.

Impact on the Data Brokerage Industry

This FTC action sends a strong message to the data brokerage industry, signaling a heightened focus on protecting consumer privacy, particularly in the sensitive area of location data. It is likely to prompt increased scrutiny of data collection practices and could lead to further regulations to safeguard individuals' sensitive information.