The United States Federal Trade Commission (FTC) has initiated significant legal actions against two American data brokers, Mobilewalla and Gravy Analytics, accusing them of unlawfully trafficking in sensitive location data. This data, the FTC asserts, has been utilized for purposes beyond mere advertising, including tracking individuals near protected sites such as churches, military bases, and healthcare facilities. Alarmingly, this sensitive information was allegedly used for political campaigns and even governmental operations like immigration enforcement. The actions taken by the FTC highlight growing concerns over data privacy and the ethical use of location data in a rapidly evolving digital landscape.
Mobilewalla, based in Georgia, is accused of engaging in particularly invasive tracking practices. The FTC charges that the company tracked the movements of individuals residing in domestic abuse shelters and allegedly targeted individuals participating in protests that arose in response to George Floyd’s murder in 2020. In court filings, the agency claims Mobilewalla endeavored to unveil the racial identities of these protesters by monitoring their mobile devices as they visited specific locations, including Hindu temples and Black churches. These allegations set a concerning precedent regarding the use of location data to surveil marginalized groups and raise critical questions about the responsibilities data brokers hold concerning consumer privacy.
On the other hand, Gravy Analytics, along with its subsidiary Venntel, faces accusations of collecting and exploiting consumers’ location data without obtaining proper consent. The FTC argues that the company employed this data to derive unfair inferences about consumers’ health decisions and religious affiliations, further emphasizing a worrisome trend of using personal information for profiling. Gravy Analytics reportedly amassed over 17 billion location signals daily from nearly a billion mobile devices, selling this access to various federal law enforcement agencies, including the Department of Homeland Security and the FBI. This raises significant concerns about how location data can be weaponized against ordinary citizens and the need for regulatory oversight.
Mobilewalla responded to the allegations through a spokesperson asserting that their privacy policies are continually evolving. While the company disagrees with the FTC’s characterizations, it expressed satisfaction with a potential resolution that allows them to continue offering business insights while ensuring consumer privacy is respected. The company’s reply indicates a tension between the demand for data-driven insights for commercial success and the imperative of protecting consumer rights in an age of increasing surveillance and commercialization of personal data.
The FTC emphasizes that the collected location data has the potential to pinpoint sensitive information about consumers, including their religious affiliations and everyday routines. By tracking mobile device location, the companies could determine where individuals lived, worked, worshipped, and socialized—allowing for targeted advertising predicated on deeply personal attributes. Such capabilities underscore the risks posed by the unchecked collection of location data, particularly how it could lead to discrimination or unwanted targeting based on religion, health status, or other protected characteristics.
Ultimately, the legal action taken against Mobilewalla and Gravy Analytics could signal a turning point in how data privacy is managed within the digital economy. The proposed settlements, which include a prohibition on collecting sensitive location data and the requirement to delete previously gathered data, represent the FTC’s first foray into directly overseeing data collection practices from advertising exchanges. This case may set a precedent for stronger regulatory frameworks governing data brokers, potentially leading to greater consumer protections and accountability in the data industry. As discussions around digital privacy continue to evolve, the outcomes of these settlements will likely shape the landscape in which data brokers operate, influencing how consumer information is handled in the future.
