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.
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.
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.
Entity
X-Mode Social and Outlogic, LLC
Also known as: X-Mode Social
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/01/ftc-order-prohibits-data-broker-x-mode-social-outlogic-selling-sensitive-location-data
X Mode Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/X-Mode-Complaint.pdf
X Mode D&O
https://www.ftc.gov/system/files/ftc_gov/pdf/X-Mode-D%26O.pdf
statement chair lina m khan matter x mode social inc outlogi
https://www.ftc.gov/legal-library/browse/cases-proceedings/public-statements/statement-chair-lina-m-khan-matter-x-mode-social-inc-outlogic-llc
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"X-Mode Social and Outlogic"
"FTC Act"
"selling raw location data, failing to obtain informed consumer consent"
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