The FTC, which doesn’t like adtech much, is getting its last licks in before the incoming Trump administration remakes it in its image.
Today, Lina Khan’s group announced it was taking action against three companies—Gravy Analytics, its subsidiary Venntel, and Mobilewalla—for “unlawfully collecting and selling sensitive consumer location data.” The FTC’s moves are part of their broader push to curb adtech and address perceived privacy violations related to overly invasive tracking. Location data, of course, is always one of the more sensitive forms of data collection and usage given its connection to devices and physical locations.
The complaints allege Gravy Analytics and Venntel collected “precise” geolocation data from over a billion mobile devices daily, using it to sell insights about visits to sensitive locations such as healthcare facilities, places of worship, and labor union offices.
Similarly, the FTC alleges that Mobilewalla “harvested” data from RTB exchanges without consumer knowledge or consent, using it to build audience segments targeting individuals based on sensitive traits, such as health conditions or religious affiliations.
Both cases involve the sale of what the FTC describes as raw, identifiable data that could **potentially** expose end consumers to risks including discrimination, stigma, and even physical harm.
In the FTC’s proposed settlements, they say they want to impose strict limits on the sale or use of sensitive location data and require the three companies to delete historical data, set up privacy programs, and ensure suppliers obtain clear consumer consent. Notably, Mobilewalla is the first company banned from collecting data in ad auctions for purposes beyond participating in those auctions.
Why This Matters:
These enforcement actions highlight growing concerns over the role of so-called data brokers in the digital economy. Often, the FTC blurs the line between an adtech company and a “data broker,” with the latter obviously not carrying a positive connotation.
As government scrutiny of adtech data practices intensifies, the industry has been working hard to showcase accountability and transparency in handling consumer data. The IAB, for example, has made major strides in the past year, announcing a variety of initiatives to strengthen privacy standards and compliance. Apple, Google, and others have also taken steps to emphasize privacy in support of consumer protections.
Still, it often feels like there is no pleasing the FTC, which has repeatedly referred to adtech as “surveillance advertising.” In response to that, we have seen adtech grow increasingly critical of the FTC. For example, analyst Eric Seufert recently said, “I doubt that we will see as galvanized an ideological strain in the FTC under Trump.”
Experts React:
Neil Chilson, former Chief Technologist at the FTC, noticed an interesting detail: the FTC’s statement on the Mobilewalla case was revised after its release, with paragraphs added to respond to dissenting opinions. Insider FTC stuff, albeit fascinating and seemingly controversial. (The original version has been deleted.)
But it does draw attention to the dissent, most notably from Commissioner Melissa Holyoak. She argues that the FTC fails to explain how Mobilewalla’s collection of sensitive data from RTB exchanges harms consumers.
She also opposes the count regarding Mobilewalla’s use of audience segments based on sensitive characteristics, stating, “there is nothing intrinsically unfair about categorizing consumers based on sensitive characteristics derived from location data.”
Our Take:
The FTC doesn’t like adtech (though, of course, location data is an incredibly sensitive area). Will this change with a new administration? Unclear.
