Security News > 2024 > January > FTC bans data broker from selling Americans’ location data
Today, the U.S. Federal Trade Commission banned data broker Outlogic, formerly X-Mode Social, from selling Americans' raw location data that could be used for tracking purposes.
Under the order released today, the first time data brokers were barred from sharing and selling users' sensitive location data, Outlogic must now delete all unlawfully collected sensitive location data, including any models or algorithms derived from this data.
The FTC's complaint sheds light on Outlogic's history of selling consumer location data to hundreds of clients across diverse industries, including real estate, finance, and government sectors.
"The FTC's action against X-Mode makes clear that businesses do not have free license to market and sell Americans' sensitive location data. By securing a first-ever ban on the use and sale of sensitive location data, the FTC is continuing its critical work to protect Americans from intrusive data brokers and unchecked corporate surveillance."
Outlogic specializes in selling and licensing precise location data sourced from its proprietary mobile apps, third-party apps using its software development kit, and purchasing data from other brokers.
Outlogic also had shortcomings in providing complete disclosures regarding who would be able to buy the users' location data and failed to obtain informed consent from consumers to access their sensitive location data, a critical oversight noted in FTC's complaint.