FTC Crackdown: Data Brokers' Political, Pregnancy Info Sales Banned

The Federal Trade Commission (FTC) has recently concluded settlements with data brokers X-Mode Social (now Outlogic) and Kochava for misusing sensitive location data, preventing them from selling information related to reproductive health clinics, places of worship, and other sensitive locations. This action highlights the growing concern over data privacy, particularly in the political and reproductive health arenas.

Data brokers, such as X-Mode Social and Kochava, collect precise location data from millions of users worldwide. This information can reveal intimate details about individuals' lives, including their political leanings, religious beliefs, and reproductive health decisions. Until the settlements, these companies sold this sensitive data to various industries, including real estate, finance, and private government contractors, without proper consent or safeguards.

The FTC's investigation uncovered serious vulnerabilities in data collection practices, including lack of consumer consent, inadequate safeguards against downstream use, and failure to protect sensitive data. The agency imposed significant penalties on the data brokers, requiring them to delete previously collected sensitive location data, ban the collection and sale of data from sensitive locations, and establish robust privacy programs.

The FTC's action comes amidst growing public concern over data privacy, particularly in the political and reproductive health domains. Following the Supreme Court's decision to overturn Roe v. Wade in 2022, lawmakers and advocacy groups raised concerns about data brokers tracking and selling data about visits to sensitive locations. Senator Ron Wyden (D-Ore.) introduced the My Body, My Data Act of 2022 to limit reproductive health data collection, and numerous congressional Democrats sent letters to data brokers urging them to stop the practice.

The settlements highlight the urgent need for stricter regulations and enforcement of data privacy laws to curb the unaudited sale of sensitive personal information. Data brokers, acting as intermediaries, collected and sold granular geolocation data and other sensitive personal information. Wealthy donors, political action committees, and third-party vendors then acquired this data to micro-target political ads, track reproductive health decisions, and even influence public opinion.

The FTC's action is a step in the right direction, but it is not a panacea for the broader issue of data privacy. Congress must pass tough privacy legislation to prevent government agencies from buying personal data from data brokers and to ensure that Americans' sensitive information is protected from misuse.



In conclusion, the FTC's settlements with X-Mode Social, Outlogic, and Kochava signal a growing commitment to protecting consumers' privacy, particularly in the political and reproductive health domains. As data brokers continue to amass and sell sensitive personal information, strong regulations and enforcement are essential to prevent future misuse. Investors should monitor the ongoing debate around data privacy and consider supporting companies that prioritize consumer protection and data security.