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The U.S. Federal Trade Commission has banned the data broker X - Mode Social from sharing or selling users ’ sensitive location datum , the Union regulator say Tuesday .

The first of its sort settlement prohibits X - musical mode , now known as Outlogic , from sharing and trade user ’ sensitive information to others . The settlement will also require the data factor to delete or destroy all the localisation data it antecedently collect , along with any products produced from this data , unless the company obtain consumer consent or ensures the datum has been de - identified .

10 - Mode buys and sells access to the location data collected from ordinary phone apps . While just one of many organizations in the multibillion - dollar data broker industry , X - Mode faced scrutiny forselling access to the commercial location dataof Americans ’ past movements to the U.S. authorities andmilitary contractor .

Soon after , Apple and Google separate developers toremove X - Mode from their appsor face a ban from the app stores .

The FTC alleged that X - Mode sell precise location data that could be used to chase hoi polloi ’s visits to sensitive locations , such as medical and reproductive health clinic , places of religious worship and domestic insult shelters .

The regulator also alleged that the data broker failed to move out the sensitive fix from the cutting locating data it sold to third - party and did not apply “ reasonable or appropriate safeguards ” against downstream use of this accurate location data point . For at least one of its contract , the FTC said that X - Mode provided an unknown private clinical inquiry companionship with information about consumers who had visited certain medical facilities , chemist’s or specialty infusion centers within a geographic area across Columbus , Ohio .

X - Mode also failed to assure that exploiter of its own apps — Drunk Mode and Walk Against Humanity — were fully inform about how their precise positioning data point would be used , the FTC said .

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“ The entropy revealed through the location data that X - Mode / Outlogic sold not only violated consumer ’ concealment but also expose them to likely discrimination , strong-arm furiousness , emotional distress , and other damage , ” the FTC say in a argument .

“ Geolocation information can reveal not just where a person lives and whom they spend time with but also , for example , which medical treatments they try and where they worship , ” tell FTC chair Lina M. Khan . “ The FTC ’s action against X - Mode makes clear that businesses do not have free licence to market and sell Americans ’ raw location datum . ”

“ By secure a first - ever ban on the use and sale of sensitive localisation data , the FTC is go forward its critical workplace to protect Americans from intrusive datum brokers and unchecked corporate surveillance , ” said Khan .

As per the FTC ’s order , X - Mode must also implement procedures to ensure that recipient of its locating data do not assort the information with location that provide service to LGBTQIA+ people , provide a simple way for consumers to withdraw their consent for the collection and use of their location data point and establish and apply a comprehensive privacy program that protects the privateness of consumers ’ personal information .

A affirmation give to TechCrunch by public relations firm Broadsheet , which represent Outlogic , study : “ We differ with the entailment of the FTC jam firing . After a drawn-out investigation , the FTC found no example of misuse of any data and made no such allegation . Since its origination , X - Mode has imposed exacting contractual terms on all data customer interdict them from associating its data with sensitive locations such as healthcare facility . Adherence to the FTC ’s freshly introduced insurance policy will be secure by implementing extra technical cognitive process and will not require any meaning changes to business or products . ”

Sen. Ron Wyden , whose office first revealed that X - Mode had sold locating data to U.S. military contractors , said in response to the FTC ’s findings : “ I commend the FTC for submit toughened action to hold this shady localization data broker responsible for for its sale of Americans ’ location data point . ”

update with comment from Outlogic and Ron Wyden ’s office .

Location broker X - Mode go on to track users despite app storehouse ban