FTC targets data brokers over privacy concerns

Data brokers Mobilewalla and Gravy Analytics have agreed to stop using sensitive location data following a settlement with the US Federal Trade Commission (FTC). The agreement addresses concerns about tracking individuals’ religious beliefs, political leanings, and pregnancy status through mobile device data.

The settlement represents the first instance of banning the collection of location data through online advertising auctions. The FTC accused the companies of unfair practices, stating that Mobilewalla gathered information without consent from ad auction platforms. Such platforms allow advertisers to bid on specific audiences but inadvertently exposed consumers to privacy risks.

Gravy Analytics, owned by Unacast, sold location data to government contractors, prompting constitutional concerns from FTC commissioners. Mobilewalla disputed the allegations but stated the agreement allows it to continue offering insights while respecting privacy. Both companies committed to halting sensitive data usage and introducing opt-out options for consumers.

FTC Chair Lina Khan highlighted the broader risks of targeted advertising, warning that Americans’ sensitive data is at risk of misuse. The settlement is part of the Biden administration’s effort to regulate data brokers and strengthen privacy protections, as outlined by proposed rules from the US Consumer Financial Protection Bureau.