WASHINGTON, D.C. — The Federal Trade Commission (FTC) has announced a proposed settlement that bars Georgia-based data broker Mobilewalla, Inc. from selling sensitive location data and collecting consumer information without proper consent. The action follows allegations that the company unlawfully harvested and sold precise location data from millions of individuals, including data tied to health clinics, places of worship, and other sensitive locations, without consumers’ knowledge or approval.
The FTC’s complaint alleges Mobilewalla violated the FTC Act by collecting vast quantities of sensitive consumer data through real-time bidding auctions and third-party aggregators. Between January 2018 and June 2020, the company reportedly amassed more than 500 million unique consumer advertising identifiers paired with precise location data, which it sold to advertisers, data brokers, and analytics firms. The data was not anonymized, leaving individuals vulnerable to being identified and tracked based on sensitive characteristics such as medical conditions, religious affiliations, and political activities.
“Mobilewalla exploited vulnerabilities in digital ad markets to harvest this data at a stunning scale,” said FTC Chair Lina Khan. “The FTC is cracking down on firms that unlawfully exploit people’s sensitive location data and ensuring that we protect Americans from unchecked surveillance.”
The FTC further alleges that Mobilewalla used sensitive location data to develop audience segments for targeted advertising. Among examples cited, the company tracked visits to pregnancy centers to target pregnant women and analyzed protester activity following the 2020 death of George Floyd, even determining participants’ racial backgrounds.
Settlement and Compliance Requirements
Under the proposed settlement order, Mobilewalla is prohibited from selling, using, or misrepresenting the collection and handling of sensitive location data. The order also enforces stringent measures, including:
- Data Usage Restrictions: Mobilewalla must create a program to catalog sensitive locations and ensure data from these locations is not used, sold, or disclosed.
- Consumer Consent Verification: The company must establish procedures to verify that consumers have provided express consent for data collection and usage.
- Data Deletion: Mobilewalla is required to delete historic location data, consumer requests for deletion, and associated work products tied to sensitive information.
- Privacy Program: The company must implement a comprehensive privacy framework, including annual assessments and employee training, to guard against future misuse of personal data.
Additionally, Mobilewalla is required to allow consumers to withdraw consent for data collection and ensure that no information is collected from individuals without proper records of authorization.
Significance for Data Privacy Regulation
This case marks the first time the FTC has classified collecting data from online advertising auctions for secondary purposes as an unfair practice under the Federal Trade Commission Act. It also underscores the agency’s heightened scrutiny of data brokers and commitment to protecting consumer privacy from exploitative practices. Mobilewalla’s actions, the FTC noted, exposed individuals to potential harms, ranging from discrimination to physical violence, under circumstances they were unable to control.
The proposed settlement serves as a clear signal to the $200 billion global data broker industry, emphasizing the need for transparency, accountability, and compliance with consumer protection laws.
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