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Washington, D.C. - The FTC has settled with data broker X-Mode Social and its successor Outlogic, based in Norfolk, Virginia, banning them from selling or sharing sensitive location data following allegations that the companies sold raw location data without obtaining informed consumer consent. The data sold includes mobile advertising IDs, unique to each mobile device, allowing the tracking of individuals to specific locations.

Key Points

• X-Mode/Outlogic acquired location data through third-party apps using their software development kit (SDK), their own mobile apps, and purchases from other data brokers.
• The company failed to inform users of their apps, "Drunk Mode" and "Walk Against Humanity," and third-party app users about the extent of data use and did not ensure informed consumer consent. The company also neglected to honor opt-out requests for tracking and personalized ads from some Android users.
• Their clientele spans various industries, including real estate and finance, as well as private government contractors.
• Until May 2023, X-Mode/Outlogic had no policies to exclude sensitive locations from the data sold, nor did they implement adequate safeguards against the misuse of this data.
• The FTC highlights the risks posed by this practice, including potential discrimination, physical violence, emotional distress, and privacy violations.
• X-Mode/Outlogic has been involved in creating custom audience segments for marketing purposes, including providing data to a private clinical research company. The location data they collected included sensitive location information that included healthcare settings.
• The FTC considers X-Mode/Outlogic's actions as violations of the FTC Act due to unfair and deceptive practices. The order requires the companies to create a list of sensitive locations to prevent data sharing, sale, or transfer, and to delete all prior collected location data.
• They must also establish a supplier assessment program, set up data misuse prevention procedures, offer consent withdrawal options, and create a comprehensive privacy program. Additionally, the order bars them from using the location data of consumers who've opted out of targeted ads or tracking without explicit consent.