The US Federal Trade Commission (FTC) has imposed restrictions on Mobilewalla and Gravy Analytics after it was revealed that they collected and sold sensitive location data of millions of Americans without their consent.
The data included information about members of the military, patients at clinics, political protesters and other vulnerable groups. According to the FTC, these practices violate privacy and pose risks of discrimination, physical violence or psychological pressure.
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The new restrictions prohibit companies from collecting, selling or sharing location data unless it is for national security or law enforcement purposes. Mobilewalla, in particular, allegedly collected hundreds of millions of advertising codes between 2018 and 2020, which it combined with precise location data and then sold to third parties. This data was used for targeted marketing and, in some cases, for racial profiling of protesters.
The FTC stressed that addressing these practices is part of a broader effort to protect privacy, noting that these are the fourth and fifth cases involving the illegal sale of location data in just 28 months. FTC Chairwoman Lina Kahn emphasized the seriousness of the problem posed by uncontrolled surveillance through digital tools.
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Then, Virginia-based Gravy Analytics was accused of selling user profiles based on sensitive location data, including political activities, religious beliefs and medical preferences. Along with its subsidiary, Venntel, it allegedly used geofencing to collect and sell data, creating “virtual geographic boundaries” that targeted consumers based on specific characteristics or events. Affected locations included schools, child care centers and services for the homeless or refugees.
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These practices, the FTC said, violate the law that prohibits unfairly and deceptively collecting or selling data without users' consent. The commission is requiring both companies to delete all location data they have collected and implement a strict audit program for handling sensitive location data.
Source: cybernews
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