FTC Settles with Data Brokers Over Unlawful Data Collection

The U.S. Federal Trade Commission (FTC) announced on Tuesday that it has reached settlements with two consumer data brokers, Mobilewalla and Gravy Analytics, who were accused of selling sensitive personal information, including data on individuals' religious and political beliefs and pregnancy status.

The FTC alleged that these companies engaged in unfair and deceptive practices by gathering location data without ensuring it had been obtained with the individuals' consent. This marks a significant step in the Biden administration's ongoing efforts to crack down on data brokers over privacy concerns.

As part of the settlements, Mobilewalla and Gravy Analytics have agreed to stop using sensitive location data and to provide opt-out mechanisms for individuals. Additionally, Mobilewalla has agreed to stop gathering information from online advertising auction platforms for purposes other than bidding on ads, a practice the FTC deemed unlawful for the first time.

FTC Chair Lina Khan emphasized the need for further attention from U.S. policymakers on online ad auctions, stating that the multi-billion-dollar industry built around targeted advertising may leave Americans' sensitive data extraordinarily exposed.

Gravy Analytics' subsidiary, Venntel, which sells location data to government contractors, has also raised constitutional concerns among the FTC's Democratic commissioners. The FTC's two Republican commissioners partially supported the settlements, with one agreeing that selling location data to U.S. government agencies could violate individuals' constitutional rights.