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The U.S. Federal Trade Commission (FTC) has imposed new restrictions on data brokerage firms Mobilewalla and Gravy Analytics after both companies were found to have illegally collected and sold the precise location data of millions of Americans. This data included sensitive information about military members, patients at healthcare facilities, religious worshippers, and individuals attending political protests. The ruling aims to protect consumer privacy and curb the misuse of location-based data.
The FTC’s complaint highlighted how these data brokers used advanced technologies to track and exploit the locations of individuals without their knowledge or consent. The companies gathered sensitive location information, including visits to military sites, women’s health clinics, and religious institutions. The data was then sold to third parties, including advertisers and analytic firms, for targeted marketing campaigns based on consumers’ personal attributes like medical conditions and religious beliefs.
Mobilewalla, a Georgia-based company, collected over 500 million consumer identifiers between January 2018 and June 2020, pairing them with precise location data to track individuals’ movements. This data was not anonymized, making it possible to identify individuals and their locations, including their private residences.
Gravy Analytics, based in Virginia, used a method known as geo-fencing to gather location data, creating virtual boundaries around sensitive locations such as schools, healthcare facilities, and places of worship. The company then sold this information to create consumer profiles, which were used for targeting individuals based on their political activities, health decisions, or religious affiliations.
As part of the FTC’s ruling, both companies are banned from handling or using sensitive location data from these sites, unless required for national security or law enforcement purposes. Additionally, they must delete all historical location data and develop a program to identify and safeguard sensitive locations.
FTC Chair Lina Khan stressed the risks of digital surveillance, noting that this case marks the fourth and fifth actions taken by the FTC in the past 28 months against the illegal sale of sensitive location data. The ruling serves as a warning about the dangers of unregulated data practices and highlights the need for stronger privacy protections.
