The FTC finalized an order against data broker X-Mode and its successor Outlogic for selling precise location data that could track visits to sensitive locations like medical clinics and places of worship. The order bans them from sharing or selling sensitive location data and requires them to delete collected data, implement privacy programs, and ensure downstream compliance.
The order prohibits X-Mode/Outlogic from selling or sharing sensitive location data, requires deletion of previously collected location data unless consensual or deidentified, mandates creation of a sensitive locations list, implements a supplier assessment program, sets procedures for data recipients to avoid misuse, and establishes a comprehensive privacy program with a data retention schedule.
In-house legal teams should review all vendor, customer, and data processing agreements where location data is shared, sold, or processed. Focus on clauses governing data sharing, consent mechanisms (especially for sensitive locations like medical clinics or places of worship), data retention and deletion obligations, breach notification, and downstream use restrictions. Contracts may need amendments to explicitly prohibit the sale or sharing of sensitive location data, require deletion of previously collected location data, mandate the implementation of privacy programs, and include audit rights or indemnification to ensure downstream recipients comply with restrictions on sensitive location data.
Entity
X-Mode Social and Outlogic
Also known as: X-Mode
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-finalizes-order-x-mode-successor-outlogic-prohibiting-it-sharing-or-selling-sensitive-location
X ModeSocialComplaint
https://www.ftc.gov/system/files/ftc_gov/pdf/X-ModeSocialComplaint.pdf
X ModeSocialDecisionandOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/X-ModeSocialDecisionandOrder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"X-Mode and its successor Outlogic"
"sold precise location data that could be used to track people’s visits to sensitive locations such as medical and reproductive health clinics and places of worship."
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$106.8M
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