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FTC Prohibits X-Mode Social and Outlogic from Selling Sensitive Location Data

X-Mode Social and Outlogic, LLCJanuary 9, 2024Federal Trade Commission

Summary

The FTC settled with data brokers X-Mode Social and Outlogic for selling precise location data without informed consent and failing to protect sensitive information. The proposed order bans the sale of sensitive location data, requires deletion of collected data, and mandates a comprehensive privacy program. This is the FTC's first action against a data broker for sensitive location data practices.

Remedy

The proposed order bans X-Mode/Outlogic from selling or sharing sensitive location data, requires deletion of previously collected location data, mandates a comprehensive privacy program, implements supplier assessments, and provides consumers with ways to withdraw consent and delete their data.

BanData DeletionCompliance ProgramAudit Requirement

Contract Impact

In-house legal teams should review all vendor, customer, and data processing agreements where location data is collected, shared, or sold. Focus on clauses defining data scope (especially 'sensitive location data' covering medical clinics, places of worship, shelters), consent mechanisms for geolocation tracking, third-party data sharing/sale permissions, data security obligations, and data retention/deletion policies. Changes may be needed to prohibit the sale of sensitive location data, require explicit opt-in consent for precise location collection, impose stricter security safeguards on third-party data use, and align retention/deletion practices with the order's mandate to delete collected data.

Contract Search Terms

sensitive location datainformed consentdata sale prohibitionthird-party data sharingdata security safeguardsdata retention schedulegeolocation tracking consentsensitive locations definitiondata broker agreementdata deletion requirement

Laws Cited

FTC Act

Violation Types

Entity Details

Entity

X-Mode Social and Outlogic, LLC

Also known as: X-Mode Social

Industry

Data Broker

Official Sources

Source Evidence

Entity Name
"X-Mode Social and Outlogic"
Laws Cited
"FTC Act"
Violation Types
"selling raw location data, failing to obtain informed consumer consent"

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