FTC Orders Major Data Broker to Stop Selling Sensitive Location Data

The Federal Trade Commission took enforcement action against multiple data brokers for selling precise geolocation data that could reveal consumers' visits to sensitive locations including healthcare facilities, places of worship, domestic violence shelters, and military installations.

The FTC found that the companies failed to obtain informed consent and did not implement reasonable safeguards to prevent misuse of location data. The orders prohibit the companies from selling sensitive location data, require deletion of previously collected data, and impose compliance monitoring.

These actions signal the FTC's position that sale of sensitive location data can constitute an unfair practice under Section 5 of the FTC Act, even in the absence of comprehensive federal privacy legislation. The agency has indicated it will continue pursuing data brokers engaged in similar practices.