FTC Prohibits Another Data Broker from Marketing Consumers’ Location Information
The U.S. Federal Trade Commission has continued its crackdown on data brokers with a settlement banning data aggregation company InMarket from selling consumers’ precise location data.
Texas-based InMarket, which debuted as CheckPoints at TechCrunch Disrupt 2010, provides a marketing platform that collects sensitive consumer data — including location data, purchasing history, and demographic information — which brands and advertising agencies use to facilitate targeted advertising on mobile devices.
Based on the data that InMarket collects, brands can target shoppers who are likely to be low-income millennials or Christian churchgoers, according to the FTC.
In its proposed order unveiled Thursday, the FTC accused InMarket of failing to obtain users’ consent before using their location data for marketing and advertising purposes.
That order marked the first time the regulator struck a deal to prohibit a company from selling sensitive location data.
