FTC Cracks Down on Data Brokers Selling Sensitive Location Data to Harmful Parties

In a bold move to protect consumer privacy, the Federal Trade Commission (FTC) has taken action against three data brokers—Gravy Analytics, Venntel, and Mobilewalla—for unlawfully tracking and selling sensitive consumer location data. The charges stem from allegations that these companies sold location information revealing visits to places like health clinics, places of worship, military installations, and labor union offices, without the consent of those affected.

The FTC’s aggressive stance is designed to put an end to practices that undermine consumer rights and expose individuals to potential discrimination, violence, and emotional harm. This marks the fourth and fifth enforcement actions taken this year alone against companies exploiting sensitive location data.

Selling Sensitive Data: A Breach of Privacy & Trust

The FTC’s complaints paint a disturbing picture of how consumer location data is being collected, used, and sold without informed consent. Gravy Analytics and Venntel, operating under the guise of legitimate data aggregation, gathered millions of data points from mobile devices, with users unaware of how their data was being used. The companies then sold these data sets, which included information about visits to sensitive locations, to other entities—such as advertisers and government agencies—exposing individuals to a range of risks.

Among the allegations against Gravy Analytics and Venntel is the use of geofencing, a technique that maps out virtual boundaries to track individuals' visits to sensitive locations. The data collected not only revealed consumers’ physical movements but also sensitive characteristics like medical conditions, religious practices, and political activities, potentially violating their privacy and civil liberties.

The FTC’s Samuel Levine condemned the practice, stating, “Surreptitious surveillance by data brokers undermines our civil liberties and puts servicemembers, union workers, religious minorities, and others at risk.”

Similarly, Mobilewalla faced scrutiny for collecting and selling location data harvested from real-time advertising exchanges and third-party aggregators. Mobilewalla’s sales included sensitive data from consumers visiting medical centers, pregnancy clinics, and places of worship, exposing them to potential discrimination or violence.

Proposed Settlements: Tough Measures for Data Brokers

In response to the allegations, the FTC has proposed comprehensive settlements aimed at curbing these harmful practices. Gravy Analytics, Venntel, and Mobilewalla are now under strict orders to cease selling or disclosing sensitive location data unless required by national security or law enforcement purposes. These companies must also create robust sensitive location data programs to prevent future misuse.

Specific actions required by the settlements include:

• The deletion of all historic location data that could be traced back to individual consumers.
• The implementation of privacy programs designed to safeguard consumers’ personal information and ensure proper consent is obtained for all data collection.
• A ban on selling data related to sensitive locations, such as healthcare facilities, religious institutions, military sites, and correctional facilities.
• Provisions to allow consumers to request deletion of their data and prevent further collection of sensitive information.

FTC’s Expanding Efforts to Protect Consumer Privacy

The FTC’s recent actions are part of a broader crackdown on data brokers that sell location data without consumers’ knowledge or consent. Previous enforcement actions this year have focused on companies like X-Mode and InMarket, which were found to be selling precise location data without proper safeguards. The commission’s stance has become clear: consumers’ right to privacy must be protected, and companies found violating these principles will face severe consequences.

FTC Chair Lina Khan emphasized the agency's commitment to holding data brokers accountable, stating, “Mobilewalla exploited vulnerabilities in digital ad markets to harvest this data at a stunning scale. The FTC is cracking down on firms that unlawfully exploit people’s sensitive location data and ensuring that we protect Americans from unchecked surveillance.”

For data brokers, these settlements mark a turning point in how sensitive location data will be handled in the future. The mandates set forth by the FTC will require companies to adopt more stringent policies and practices, ensuring that consumer consent is not only obtained but verifiable. These companies will also face substantial penalties if they fail to comply with the new regulations.

For consumers, the FTC’s actions represent a step toward regaining control over personal data. The proposals are a direct response to growing concerns about privacy invasions and surveillance, offering a much-needed shield against exploitation by companies selling personal information for profit.

As these cases move forward, the public will have a chance to comment on the proposed settlements before they become final. The FTC’s decision to pursue these cases with such urgency signals that consumer protection is a top priority for the commission, and those who continue to exploit personal data without consent will face increasing scrutiny and enforcement.

The FTC’s crackdown on data brokers like Gravy Analytics, Venntel, and Mobilewalla underscores the importance of protecting sensitive consumer data in a world where privacy violations can have severe consequences. As the regulatory landscape evolves, companies must be prepared to rethink their data practices and embrace a future where consumer rights are respected and upheld. With the FTC leading the charge, consumers may finally see a significant reduction in the risks posed by invasive data harvesting and the exploitation of their personal information.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.