Dive Brief:
- The Federal Trade Commission has barred another data firm from selling or licensing precise location data that could reveal sensitive information about consumers.
- Regulators alleged that data aggregator InMarket Media failed to receive informed consent from its app users about how the company would use the information, including for targeted advertising. The FTC also said InMarket failed to ensure third-party apps obtained informed consent, and that the firm kept location data longer than was necessary.
- The proposed settlement is the second similar case this month. The FTC previously settled allegations that data broker Outlogic had sold location data that could link consumers’ visits to sensitive places like reproductive health clinics.
Dive Insight:
Regulators have lately been cracking down on the sale of location data that could link them back to sensitive places like clinics, a growing concern for privacy experts in the wake of the Supreme Court's decision to overturn Roe v. Wade.
Earlier this month, the FTC announced a settlement with Outlogic, formerly known as X-Mode Social, following allegations that the company sold raw location data that could be used to track visits to clinics.
In one instance, regulators cited a clinical research company that licensed custom audience segments of people who had visited cardiology, endocrinology or gastroenterology offices and then pharmacies or infusion clinics in Columbus, Ohio.
In 2022, the agency sued data broker Kochava for selling geolocation data that could be used to track users’ locations, including an example where the FTC could identify a user who had visited a reproductive health clinic and link that information to a home address. That case is ongoing.
In the latest proposed order, regulators alleged that InMarket failed to notify users that their location data would be used for targeted advertising, and kept information for five years — increasing the likelihood that the data could be misused and reveal sensitive information.
InMarket collects location data from its own apps as well as third-party apps that use its software development kit, according to the FTC’s complaint.
The firm then sorts users into audience segments based on visits to certain locations — like “wealthy and not healthy” or “parents of preschoolers” — for advertising purposes.
InMarket disagreed with the FTC’s allegations, a spokesperson told Healthcare Dive. The company is “expanding our existing sensitive location protections” and working with partners using its software development kit to make sure their notice and consent processes are clear.
In December, the firm announced it was working with a nonprofit to identify location information near reproductive health clinics and remove it from the company’s database.
