The Federal Trade Commission (FTC) has taken a significant step in protecting Americans' privacy by banning two data brokers, Gravy Analytics and Mobilewalla, from collecting, using, and selling sensitive location data. The agency announced the move on Tuesday, citing the risks of surveillance and harm to millions of Americans.

The FTC targeted Gravy Analytics, its subsidiary Venntel, and Mobilewalla for allegedly violating the FTC Act by collecting and selling information that could be used to track people to healthcare facilities, military bases, religious sites, labor union gatherings, and other sensitive locations. According to the FTC, this sensitive location data can be used for surveillance, putting millions of Americans at risk.

Mobilewalla, one of the banned data brokers, relied primarily on consumer information collected from real-time bidding exchanges. The company would bid to show people personalized ads on their mobile devices and then retain tracking information identifying them. Additionally, Mobilewalla bought information from other sources and used additional data to build out the profiles attached to each advertising ID. This allowed the company to create audience segments targeting pregnant women, as well as provide analysis of people who attended protests over the death of George Floyd.

Venntel, Gravy Analytics' subsidiary, collected location data from otherwise ordinary mobile apps and sold access to the data to other businesses or government agencies. According to 404 Media, the IRS, DEA, FBI, CBP, and ICE have all purchased Venntel data. The scope of the data collection and sale is alarming, with Senator Ron Wyden from Oregon stating that these companies could sell information about "law enforcement, judges and members of the armed forces" to "anyone with a credit card," putting citizens and military personnel in danger.

The FTC's ban requires the companies to comply by never "selling, disclosing, or using sensitive location data in any product or service, and must establish a sensitive data location program." Mobilewalla's proposed settlement order will also prohibit the company from misrepresenting how it collects, maintains, uses, deletes, or discloses consumers' personal information, and the extent to which consumers' location data is deidentified.

Furthermore, the company will be prohibited from using, transferring, selling, and disclosing sensitive location data from health clinics, religious organizations, correctional facilities, labor union offices, LGBTQ+-related locations, political gatherings, and military installations. The ban is a significant step in protecting Americans' privacy and preventing the misuse of sensitive location data.

Senator Ron Wyden applauded the FTC and CFPB for limiting what the companies can collect, stating that US government agencies spied on Americans by obtaining this data without a warrant. "Many federal agencies hid behind the flimsy claim that Americans consented to the sale of their data, but the FTC's orders make it clear how untrue these claims were," said Wyden.

The implications of this ban are far-reaching, with significant consequences for the data brokerage industry as a whole. The move highlights the need for stronger regulations and oversight to protect Americans' privacy and prevent the misuse of sensitive data. As the digital landscape continues to evolve, it is essential that policymakers and regulatory agencies prioritize privacy and security to ensure that Americans' personal data is protected.