FTC Takes Action Against Mobilewalla for Unlawful Sale of Location Data

The FTC has sued Mobilewalla for unlawfully selling sensitive location data without consent, highlighting serious privacy risks for consumers.

The Federal Trade Commission (FTC) has recently launched a legal challenge against Mobilewalla, Inc., alleging that the company has violated Section 5 of the FTC Act.

According to the complaint, Mobilewalla inappropriately sold sensitive location data of consumers and targeted them based on personal traits, all without securing necessary consent.

The FTC describes these practices as unfair, particularly criticizing how the company collects and retains consumer data from real-time bidding (RTB) exchanges indefinitely.

Mobilewalla’s Data Brokerage Practices

Mobilewalla operates as a data broker, accumulating vast amounts of consumer information, including highly specific location data that can reveal personal aspects of individuals’ lives.

The company touts its ability to provide an in-depth understanding of consumer behavior across various online and offline platforms.

However, many consumers remain blissfully unaware that their location data is being collected through Mobilewalla’s partnerships with other data providers.

In addition to location data, Mobilewalla gathers an extensive range of personal information from multiple sources.

This includes data acquired from RTB exchanges and other brokers, which may also source their information from networks of suppliers, mobile apps, and online advertising platforms.

Most of this data collection occurs through RTB exchanges, which are designed to deliver advertisements to users’ devices swiftly.

When an app or website employs specific technology, they collect the user’s personal data and send it to the RTB exchange as part of a bidding process.

This all happens in milliseconds and without the consumer’s direct involvement.

Even if advertisers do not win the auction, they can still access and use information from the bid requests.

Privacy Concerns and Consumer Risks

The FTC points out that Mobilewalla retains data from these bid requests, even when it fails to win a bid.

This data includes the mobile advertising identifier (MAID) of the device and precise geolocation details, provided that the location services are turned on.

Mobilewalla integrates this information with additional purchased data, such as phone numbers, to form comprehensive consumer profiles.

They then sell access to this data, including unmasked location details, which raises serious privacy issues since MAIDs can directly link back to specific users.

The FTC’s concerns center around the risks associated with these practices.

The attached location data could enable tracking individuals to sensitive places like healthcare facilities, religious institutions, LGBTQ+ centers, domestic violence shelters, and organizations aiding the homeless or vulnerable populations.

The ability to infer such sensitive details poses a threat of significant harm—potentially leading to stigma, discrimination, emotional distress, and even physical violence against targeted consumers based on their identifiable characteristics.

Ongoing Scrutiny and Ethical Implications

In a similar vein, the FTC has recently concluded actions against Gravy Analytics, Inc. and Venntel, Inc., following investigations into how they collect and sell sensitive consumer location data.

This ongoing scrutiny highlights the increasing importance of consumer privacy and the ethical implications of data collection practices in today’s digital landscape.

Source: Natlawreview.com