The U.S. Federal Trade Commission (FTC) has taken action against data aggregation company InMarket, prohibiting the sale of consumers’ precise location data. This move is part of the FTC’s ongoing efforts to regulate data brokers and protect consumer privacy.
Key Takeaway
The FTC has reached a settlement with InMarket, prohibiting the sale of consumers’ location data and requiring the company to destroy previously collected data unless consumer consent is obtained.
Unauthorized Use of Location Data
InMarket, a Texas-based marketing platform, has been accused by the FTC of collecting sensitive consumer data, including location data, without obtaining proper consent. The company allegedly utilized this data for targeted advertising without informing users adequately.
Allegations and Settlement Terms
The FTC claims that InMarket failed to obtain consent from users of its own apps, ListEase and CheckPoints, and did not adequately inform consumers about the data collection and usage practices. Additionally, the company’s SDK, incorporated into numerous third-party apps, allegedly did not provide clear notification to users regarding the use of their location data for targeted advertising.
As part of the settlement, InMarket is prohibited from selling, licensing, or sharing any product that targets phone owners based on sensitive location data. The company is also required to destroy all previously collected location data unless consumer consent is obtained. Furthermore, InMarket must notify affected consumers about the FTC’s action and provide them with an option to opt out of any data collection.
Company’s Response
In response to the allegations, InMarket’s chief legal officer and chief privacy officer, Jason Knapp, stated that the company disagrees with the FTC’s claims but is committed to enhancing its policies around data disclosure and use. Knapp emphasized that InMarket has no intention of selling consumer location data and is expanding its protections for consumers.
