The Federal Trade Commission (FTC) has finalized an order that prohibits data broker Mobilewalla Inc. from selling sensitive location data. This decision is part of a settlement following allegations that the company sold such information without adequately verifying consumer consent.
In December, the FTC filed a complaint against Mobilewalla, accusing the company of unlawfully tracking and selling consumers' sensitive location data. This included data related to visits to healthcare facilities and places of worship.
According to the final order, Mobilewalla is now banned from collecting consumer data through online real-time bidding advertising exchanges for any purpose other than participating in those auctions. The FTC's action marks the first instance where it has labeled this practice as unfair.
Additionally, Mobilewalla is prohibited from misrepresenting how it collects, maintains, uses, deletes, or discloses consumers' personal information. The company must also not use, transfer, sell, or disclose location data from sensitive locations such as health clinics, religious organizations, correctional facilities, labor union offices, LGBTQ+-related locations, political gatherings, and military installations.
The Commission voted 4–1 in favor of approving the final order and responding to public comments. Commissioner Melissa Holyoak cast the sole dissenting vote.
The Federal Trade Commission's mission is to promote competition while protecting and educating consumers. It emphasizes that it will never demand money or make threats regarding transfers or prizes. Consumers can learn more about relevant topics at consumer.ftc.gov or report fraudulent activities at ReportFraud.ftc.gov. Updates are available via social media and through alerts on their website.
