FTC Bans Outlogic from Selling Sensitive Location Data

In a landmark move underscoring privacy concerns, the Federal Trade Commission (FTC) has imposed a ban on Outlogic, formerly known as X-Mode Social, from selling sensitive location data harvested from smartphone apps. This enforcement action marks a watershed in consumer privacy protection. The FTC has mandated that Outlogic must either gain explicit consumer consent or ensure data is anonymized before using it further.

This crackdown follows extensive scrutiny of X-Mode’s practices, such as selling precise location data that could track people’s visits to sensitive sites. Such practices, revealed by the FTC, raised profound concerns about individuals being exposed to risks such as discrimination and emotional distress. Furthermore, recipients of X-Mode’s location data are prohibited from associating it with LGBTQIA+ service locations under the stringent FTC order.

Prompted by these concerns, tech giants Apple and Google issued an ultimatum to developers: eliminate X-Mode from apps or face exclusion from their app stores. This decisive action effectively curtails the reach of Outlogic’s data collecting capabilities.

Yet, despite assertive moves by corporations, Outlogic contests allegations of data misuse and maintains it has instituted contractual terms that prevent associating data with sensitive locations, intending to adhere to FTC policies with minimal impact on its business operations.

Amidst the outcry over privacy, it has come to light that the U.S. military, too, has been purchasing granular movement data from various apps, without user consent or awareness, feeding into concerns about privacy and potential military use. Senator Ron Wyden has thrown his weight behind the crackdown on companies like X-Mode, calling for legislation to regulate and fine data brokers to bolster consumer privacy.

For consumers, the broader issue remains. The FTC has set a precedent signaling to data brokers the impermissible nature of unethical data collection and sale. Now, Outlogic is required to introduce methods for consumers to withdraw consent and to implement a comprehensive privacy program.

The overarching message is clear—privacy is paramount. The efforts of the FTC, combined with the scrutiny from media and governmental figures, are pivotal steps forward in reining in the unregulated wild west of sensitive data commerce. The developments here provide a vanguard case, potentially heralding a new era in data privacy and cybersecurity. For in-depth information about the FTC’s ban on Outlogic, please visit this FTC news release.