WASHINGTON, D.C. — The Federal Trade Commission (FTC) has prohibited InMarket Media from dealing in consumer location data — unless it has the explicit consent of the involved parties. This is eye-opening news, not just for InMarket, but for all businesses that deal with customer location data.
Based in the Lone Star State, InMarket Media — a giant in the data aggregation arena — gathers location data from myriad sources, including its own apps and those of third parties. The goal here is clear: use this data to craft laser-targeted ads. However, the FTC contends that InMarket overstepped its bounds, failing to secure the fully informed consent of its app users or ensure that third-party apps operating on its Software Development Kit did the same.
But that’s not the only bone the FTC has to pick with InMarket. It has also expressed reservations about the company’s five-year retention period for geolocation data, noting that this unnecessary data hoarding upped the odds of misuse or undesired exposure of sensitive data. This case echoes a prior FTC action concerning similar issues, underscoring the need for stringent consumer privacy protection in an age marked by increasingly sophisticated corporate surveillance.
Under the new FTC order, InMarket doesn’t just find its hands tied when it comes to selling or licensing location data – the company is also required to erase previously sourced data. The only scenario in which it doesn’t have to is if explicit consumer consent is obtained or the data is suitably de-identified or stripped of sensitive characteristics. Furthermore, InMarket will need to let consumers withdraw their consent easily and request data deletion. It is also obliged to notify impacted consumers of the FTC’s intervention and let them opt out of data gathering or erase their data.
In the grand scheme of things, the FTC’s stand against InMarket will likely have ramifications far beyond this single company. By coming down hard on unauthorized sales or licensing of detailed location data, the FTC is sending a clear message: consumer privacy cannot be compromised. And it’s not just about consent – the FTC is fierce about emphasizing the importance of companies reassessing their privacy safeguards to ensure consumers are fully protected. This InMarket case serves as a stark reminder that locations traced by data cannot be monetized recklessly and that regulatory authorities like the FTC are determined to wield their considerable power to watch over consumer privacy.
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