FTC Locates Problems with Data Broker’s Sale of Sensitive Consumer Information

  • The FTC settled with X-Mode Social, Inc. and its successor Outlogic, LLC to resolve allegations the location data broker violated the FTC Act by selling location data that could be used to identify people and track them to sensitive locations such as medical facilities, places of religious worship, and domestic abuse shelters.
  • The FTC’s complaint alleged that the raw data sold by the company—which was associated with mobile advertising IDs—was not anonymized and could be used to match an individual consumer’s phone with the locations they visited. In addition, the complaint alleges that the company failed to honor consumers’ privacy choices and failed to fully inform them of how their data could be used.
  • Under the terms of the settlement, X-Mode/Outlogic is prohibited from making misrepresentations regarding its collection and use of location data, must establish a program to ensure it is not sharing data related to sensitive locations, and must provide consumers with easy ways to withdraw consent for the collection and use of location data, among other things.