FTC Issues First Order Prohibiting Sale of Sensitive Location Data and Bans Data Broker from Selling Precise Consumer Location Data

In a landmark decision, the Federal Trade Commission (“FTC”) has taken action against data brokers X-Mode Social and its successor company, Outlogic, by imposing a prohibition on their ability to share or sell sensitive location data. This settlement marks the first time the FTC has intervened in the collection and sale of sensitive geolocation data, setting a new precedent for data privacy protections. The case centers around X-Mode and Outlogic’s practice of collecting and selling precise location data linked to mobile advertising identifiers. This data, which is tied to specific devices, was being sold without sufficient safeguards or consumer consent. The precise geolocation data was particularly troubling because it included visits to sensitive locations such as medical and reproductive health clinics, religious institutions, and domestic violence shelters. This type of information, if misused, can have dire consequences for individuals, including discrimination, harassment, or emotional distress.