The Federal Trade Commission (FTC) recently increased scrutiny on data brokers with unprecedented settlements aimed at banning the sale of sensitive geolocation data. This comes as the latest attempt by the agency to tackle the industry’s long-standing alleged failures to sufficiently secure consumer information.
In January, enforcement actions were taken against InMarket Media LLC, X-Mode Social Inc. and its successor Outlogic LLC, barring them from selling consumers’ sensitive location data. As reported on Bloomberg Law, this increased focus on privacy by federal agencies is paramount to note for all parties involved in the handling and exchanging of such sensitive information.
The two settlements were issued nine days apart, demonstrating the FTC’s seriousness about vendor obligations in the face of escalating security and privacy concerns. According to Bhavna Changrani, an attorney at the FTC’s Division of Privacy and Identity Protection, the orders should be seen as a signal to the industry of the high value and sensitivity nature of people’s location data.
With these developments, the FTC has made clear that sellers need to review all geolocation information they handle. This in turn magnifies the onus on data brokers to ensure their operations encompass effective data protection and privacy measures.
Legal professionals and companies must pay growing attention to the rapidly evolving landscape of privacy laws and regulations. Keeping abreast of these developments will ensure continued compliance, maintain trust with consumers, and avoid potential legal complications.