Justin Sherman on the FTC Settlement with Location Data Broker X-Mode
Jan 19, 2024
auto_awesome
Lawfare's podcast discusses the FTC settlement with X-Mode Social, a location data broker. They explore the prohibition of selling sensitive location data, potential actions against data brokers, and the need for comprehensive privacy legislation. The podcast also analyzes the FTC complaint against X-Mode, the challenges of data sharing obligations, and the implications and frustrations surrounding the lack of privacy legislation.
The FTC's settlement with X-Mode prohibits the sale of location data about sensitive locations, setting a precedent for protecting sensitive information from other location data brokers.
The X-Mode settlement highlights the need for comprehensive privacy legislation to address privacy abuses and ensure long-lasting and impactful changes in data protection.
Deep dives
X-Mode's Importance in Location Data Broker Industry
X-Mode is a prominent location data broker that collects over 10 billion location data points daily and sells it to clients in various industries. The FTC reached a settlement with X-Mode after finding that it engaged in unfair business practices, including selling sensitive location data.
FTC's Measures to Protect Sensitive Locations
The FTC's settlement with X-Mode prohibits the sale of location data about sensitive locations, such as medical facilities, religious organizations, correctional facilities, and temporary shelters. This groundbreaking decision sends a clear message to other location data brokers about the need to protect sensitive information.
Challenges in Ensuring Compliance and deterring Other Brokers
While the FTC settlement with X-Mode is a significant step, challenges remain. Ensuring compliance with the order and the need for broader privacy legislation are ongoing concerns. Additionally, other location data brokers may continue selling data on sensitive locations, highlighting the need for greater regulation and industry-wide changes.
The Need for Comprehensive Privacy Legislation
The X-Mode settlement underscores the need for comprehensive privacy legislation. The FTC's limited resources and the lack of clear regulations create challenges in addressing privacy abuses. The order may prompt increased congressional scrutiny, but comprehensive legislation is necessary for long-lasting and impactful changes in data protection.
Last week, the Federal Trade Commission (FTC) reached a settlement with location data broker X-Mode Social. X-Mode collects over 10 billion location data points from all over the world every day, and sells it to clients in a range of industries, like advertisers, consulting firms, and private government contractors. The FTC argued that the data broker was conducting unfair business practices, including selling people’s sensitive location data.
To discuss the FTC settlement and its implications, Lawfare's Fellow in Technology Policy and Law Eugenia Lostri sat down with Justin Sherman, Founder and CEO of Global Cyber Strategies and a Senior Fellow at Duke University’s Sanford School of Public Policy. They talked about the FTC’s groundbreaking decision to list sensitive locations about which X-Mode cannot sell data, the likelihood that we will see further FTC action against data brokers, and the persistent need for comprehensive privacy legislation to better address harms.