On January 18, the FTC ruled that digital platforms and data aggregators do not sell or sell consumers’ precise location data, citing that they did not obtain consumer consent before collecting and selling the data to advertisers. A consent order was issued prohibiting the granting of a license.
The company collected consumer data through its applications and third-party apps, including location data, purchase history, and other personal information. The data was then sold to advertisers, who used it for targeted advertising. In its order, the FTC emphasized the sensitivity of location data, which can reveal personal information such as health information, political affiliation, and personal habits. The FTC asserted that the company’s conduct constituted unfair or deceptive acts or practices in violation of Section 5(a) of the FTC Act.
Under the order, the company is required, among other things, to delete any previously collected precise location data, issue notices informing affected consumers of the FTC’s decision, and refrain from future violations.
Practice: The FTC order represents a broader push by regulators to strengthen protections for consumer data and enforce stricter data privacy standards by cracking down on violators and proposing new data privacy rules (previously reported here , here, and here). Without proper consent protocols in place, companies that collect and sell consumer data for advertising or other purposes may be targeted by the FTC.
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