FTC Reaches 2 Nonmonetary Settlements for Location Data Violations

Accused of “unlawfully tracking and selling sensitive location data” of mobile phone users, Gravy Analytics and subsidiary Venntel agreed to a final consent order banning them “from selling, disclosing, or using sensitive location data except in limited circumstances involving national security or law enforcement,” the agency said.

The commission approved the order on a 5-0 vote. The settlement doesn’t include an admission of guilt. Gravy and Venntel violated the FTC Act by “unfairly selling sensitive consumer location data, and by collecting and using consumers’ location data without obtaining verifiable user consent for commercial and government uses,” the FTC alleged. An attorney for Gravy and Venntel didn't comment Tuesday.

Also, the FTC said it reached another nonmonetary settlement with Mobilewalla, a data broker accused of violating consumer consent when selling location data. The company agreed to the settlement without admitting guilt over FTC allegations that it sold location data “without taking reasonable steps to verify consumers’ consent,” the agency said.

Mobilewalla, which collects location data through third-party data suppliers, is “banned from collecting consumer data from online real-time bidding advertising exchanges for purposes other than participating in those auctions, marking the first time the agency has alleged such a practice was an unfair act or practice,” the agency said.

The commission voted 4-1 to finalize the order. Commissioner Melissa Holyoak voted no, but no statement was issued on her behalf.

Under the agreement, the company is “banned from misrepresenting how it collects, maintains, uses, deletes or discloses consumers’ personal information, and the extent to which consumers’ location data is deidentified." An attorney for Mobilewalla didn’t comment.