The Federal Trade Commission (FTC) continues to pressure data brokers, and this time it is showing its strength to InMarket Media, prohibiting it from selling precise location data.
The company came under fire from the FTC for failing to inform or seek consumer consent before using information for advertising and marketing purposes.
“InMarket Media will be prohibited from selling, transferring, or sharing any product or service that categorizes or targets consumers based on sensitive location data,” said last week.
See also: FTC: Bans data-forwarding company from selling Americans' location data
In addition, the company is required to destroy all location data it previously collected andis required to provide a mechanism to consumers that allows them to withdraw their consent and request the deletion of previously collected information.
InMarket Media is said to collect location information from its own proprietary apps, such as CheckPoints and ListEase, as well as from more than 300 third-party apps that integrate its software development kit (SDK). These apps have been installed on more than 420 million unique devices as of 2017.
“If the user allows access, the InMarket SDK obtains the device’s precise latitude and longitude, along with a timestamp and a unique mobile device, as often as the mobile device’s operating system provides it – and transmits them directly to [InMarket] servers,” the FTC complaint states.
See also: WhatsApp: Allows users to hide their location
This data is used to segment consumers into nearly 2,000 segments based on the locations they visited and serve customized ads to apps that include InMarket Media's SDK . It also offers a product that serves ads to consumers based on their current location.
The FTC further said that InMarket did little to ensure that third-party apps that incorporated its SDK had obtained users. It also failed to notify third-party apps that location data provided through its SDK would be combined with other data to create consumer profiles.
Furthermore, according to the FTC, the five-year retention of customer data by InMarket Media is not considered necessary for the purposes for which it is collected.
The FTC is particularly concerned about the invasion of user. Selling precise location data without a user's consent is considered an invasion of privacy.
See also: iOS 17: How to share your location with the Check-In feature?
Additionally, the FTC is concerned about the potential misuse of this data by third parties. Location data can be used for aggressive advertising campaigns, fraud, or even criminal activities.
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Finally, the service highlights the need for transparency in the processing and use of personal data. Users have the right to know how, where and why their data is being used.
Source: thehackernews.com
