WASHINGTON, D.C. — In a landmark ruling, the Federal Trade Commission (FTC) has taken decisive action against data broker X-Mode Social and its successor, Outlogic, forbidding both entities from further transaction of sensitive location data. This verdict represents the FTC’s pioneering settlement with data brokers regarding such information, setting a new benchmark in terms of consumer privacy protection.
The said settlement was prompted by FTC allegations against X-Mode Social and Outlogic. Both companies were implicated in the sale of location data, possessing a level of precision alarming enough to track individuals to sensitive locales such as health clinics, religious institutions, and domestic abuse shelters. It was further alleged that these companies grossly mishandled the information, failing to establish reasonable protective measures over the third-party utilization of such data.
The location data in question, sold by X-Mode and Outlogic, was intricately linked with personal mobile advertising IDs. This facilitated the identification of individual consumers’ mobile devices and their respective location history. This information was subsequently trafficked to a broad range of clients spanning various industries – from real estate to finance.
As part of the settlement, X-Mode and Outlogic are obligated to either eradicate or anonymize all existing location data, unless express consent has been provided by consumers or the data has been duly deidentified or sanitized. Furthermore, both companies are mandated to undertake a rigorous supplier assessment process, designed to ensure informed consent from consumers with regards to the collection, use, and sale of their location data.
Beyond this, X-Mode and Outlogic are required to establish stringent procedures to thwart any correlation of location data with sensitive sites and to provide consumers with a straightforward mechanism to withdraw consent and inquire about the receiving entities of their personal data.
Undoubtedly, the FTC’s action against X-Mode and Outlogic underscores a firm commitment to privacy protection and curbing the activities of data brokers. The ramifications of selling sensitive location data extend well beyond mere privacy intrusion. It could potentially render consumers vulnerable to violence, discrimination, and other profound damages.
This settlement not only serves as a milestone in consumer data rulings but also emphatically reinforces the FTC’s essential role in thwarting unfair and deceptive practices within the industry. This newly set precedent is likely to have far-reaching implications for future cases involving data brokers.
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