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On January 18, the FTC issued a consent order prohibiting a digital platform and data
aggregator from selling or licensing precise consumer location data
on the grounds that it did not obtain consumer consent before
collecting and selling the data to advertisers.
The company collected consumer data, including location data,
purchase history, and other personal information, through its
applications and third-party apps. The data was subsequently sold
to advertisers who used it for targeted advertising. In its order,
the FTC underscored the sensitive nature of the location data,
which could reveal personal details like health information,
political affiliations, and personal habits. The FTC alleged the
company’s actions constitute unfair or deceptive acts or
practices in violation of Section 5(a) of the FTC Act.
Under the order, the company is required to, among other things,
delete the precise location data it previously collected, issue a
notice to affected consumers informing them of the FTC’s
decision, and refrain from future violations.
Putting it into Practice: This FTC order is
emblematic of a broader push by regulators to enhance protections
of consumer data and enforce stricter data privacy standards
through cracking down on violators and new data privacy rule
proposals (previously discussed here, here, and here). Without the proper consent protocols in
place, companies engaging in the collection and sale of consumer
data, for advertising or otherwise, could find themselves within
the crosshairs of the FTC.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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