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"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.