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In a significant move highlighting the increasing focus on privacy regulations, the Federal Trade Commission (FTC) has taken unprecedented steps against a data broker accused of selling consumers’ precise geolocation data without their consent. The FTC announced on Thursday that it had reached a settlement with InMarket Media, a Texas-based data aggregator, marking the first time the commission has banned a company from selling or licencing individuals’ detailed location information.
The FTC’s action comes in response to allegations that InMarket Media collected extensive consumer location data from mobile apps, assuring users that the information would be utilised to enhance app services. However, the company reportedly failed to disclose that the data would also be used for targeted advertising, violating user consent standards outlined by the FTC.
According to the complaint, InMarket manipulated the location data to create specific consumer groups for advertisers, such as “Christian churchgoers,” “parents of preschoolers,” high-school students, and homeschooled children. The FTC contends that InMarket failed to obtain informed consent from these individuals before utilising their data for advertising purposes.
As part of the settlement, InMarket is prohibited from selling or licencing the collected data, and the company must either delete all previously gathered location data or take measures to anonymize it. InMarket responded by stating its fundamental disagreement with the FTC’s allegations but expressing satisfaction that the settlement resolves the accusations. The company emphasised its commitment to data privacy policies and confirmed its refusal to sell consumer location data.
The FTC’s action against InMarket follows a broader trend of increased scrutiny of data brokers. Last year, the FTC proposed comprehensive measures to limit how businesses across the United States collect and utilise consumers’ personal information. This recent settlement also comes shortly after another unprecedented FTC order targeting a different data broker, Outlogic (formerly X-Mode), which marked the first ban on selling “sensitive” location data. Sensitive locations include medical facilities, places of worship, prisons, labour union offices, schools, childcare centres, and domestic violence shelters, among others.
All too frequently, serial data hoarders that endlessly vacuum up and use personal information track Americans, said FTC Chair Lina Khan, underscoring the ongoing commitment to protecting Americans from unchecked corporate surveillance. The regulatory actions underscore the growing importance of protecting consumer privacy in the digital age.
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