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    Why the FTC is cracking down on location data brokers

    en-usFebruary 01, 2024

    Podcast Summary

    • FTC Cracks Down on Location Data BrokersThe FTC is taking action against location data brokers for collecting and selling sensitive location data without explicit consent, emphasizing the importance of user privacy and consent in the digital age

      The Federal Trade Commission (FTC) is intensifying its efforts to regulate companies dealing with sensitive location data, particularly those linked to medical facilities. This multibillion-dollar industry involves collecting and selling digital information about people's whereabouts, often without their explicit consent. The FTC has already reached its first settlement with a location data broker, signaling a strong stance against such practices. In our previous episode, we explored how mobile location data is gathered, sold, and used. After the break, we'll discuss an update to that episode, featuring an FTC lawyer who worked on this landmark privacy case. He aims to send a clear message to the industry about the importance of obtaining proper consent before collecting and selling location data. Our phones hold valuable information about us, including precise geolocation data, which can reveal our exact whereabouts. Privacy lawyer Lina Gumbrau previously led investigations into mobile apps that collect and sell this data without users' knowledge. Stay tuned for more insights on this evolving issue.

    • App location data raises privacy concernsApp location data, collected unknowingly by developers and sold to data brokers, has led to privacy invasions and raised ethical concerns, particularly in the context of sensitive information and dating apps.

      Location data collected by apps can be a valuable resource for various industries, but the way it's currently being used and sold has raised privacy concerns. App developers often unknowingly share this sensitive information with data brokers through software development kits (SDKs), leading to exploitation of individuals. A notable example is the case of a Catholic priest who resigned after his location data was linked to his visits to gay bars and use of a dating app. The issue came under renewed scrutiny following the overturning of Roe v Wade, prompting investigations into men's tracking apps and companies handling location data. While location data can be helpful for epidemiologists, real estate companies, and apps like navigation and ride sharing, its misuse has resulted in privacy invasions. It's crucial for app developers to be transparent about data collection and for regulations to protect consumers' privacy rights.

    • App Developers Need to Be Vigilant About SDKs and Data RisksApp developers should carefully consider the SDKs they use and the potential data risks involved. By removing SDKs and implementing safeguards, developers can prioritize their users' privacy and build trust in their apps.

      Some Software Development Kits (SDKs) used by app developers contain invisible location tracking capabilities, which can be sold to data brokers without the developers' knowledge. This is a concern for many app developers, including Brian Mueller, the founder of Carrot Weather. Carrot Weather is a unique weather app known for its snarky and sometimes homicidal personality. To avoid collecting and storing precise location data and selling ads with potential data exposure, Brian removed SDKs from his app. However, he still relies on third-party weather data providers, which he cannot fully control regarding data handling. To mitigate this risk, Brian uses his own servers as a buffer between his customers and the data providers, ensuring that they only see requests coming from his servers and not his customers' IP addresses. This approach helps protect his customers' data privacy. The key takeaway is that app developers need to be vigilant about the SDKs they use and the potential data risks involved. By removing SDKs and implementing safeguards, developers can prioritize their users' privacy and build trust in their apps.

    • Discussing location data privacy concernsFTC takes action against data brokers selling sensitive location data, highlighting the need for transparency and consent in handling personal data.

      While consumers may be willing to share their location data for personalized experiences and free services, there are concerns about the potential misuse of this sensitive information. The discussion highlights the case of X Mode, a data broker that allegedly sold location data revealing visits to sensitive places like medical clinics, houses of worship, and domestic abuse shelters. The FTC is taking action against such practices, aiming to protect consumers from potential harm. Developers are also considering the trade-offs between privacy, convenience, and business viability. The conversation underscores the importance of transparency and consent in handling personal data. As technology continues to evolve, it's crucial to strike a balance between innovation and privacy protection.

    • FTC Cracks Down on Mobile Advertising Company for Selling Location DataThe FTC fined a mobile advertising company for selling location data without proper consent, sparking debate and a trend of increased scrutiny on data privacy.

      The Federal Trade Commission (FTC) has recently taken action against a mobile advertising company, Outlogic (formerly known as XMob), for selling location data without proper consent. Outlogic disagrees with the FTC's decision but won't significantly change its business practices. The FTC's actions follow a similar case against another company and a broader trend of increased scrutiny on data privacy. Mint Mobile sponsors this NPR piece, offering unlimited wireless plans for $15 a month, while Saatva sponsors the show with their luxury mattresses sold online at half the price of traditional brands.

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