Surveillance Data Industry Faces Crackdown As FTC Issues Ban

The Federal Trade Commission (FTC) announced on Tuesday a ban on Venntel, a major location data provider, from selling sensitive consumer data.

The order targets Gravy Analytics, Venntel’s parent company, and demands the deletion of historic data collected from vulnerable locations, including health clinics, places of worship, and refugee shelters.

Venntel’s location data is sourced through smartphone apps and the advertising ecosystem. The data has been sold to government agencies such as the IRS, FBI, and Immigration and Customs Enforcement (ICE), as reported on Tuesday by 404 Media.

Venntel also supplies data to surveillance tools like Babel Street’s Locate X and Fog Data Science, used for tracking individuals’ movements.

The complaint alleges that Gravy Analytics and Venntel violated federal laws by collecting and selling location data without users’ consent. The companies reportedly continued using this data even after learning that users had not agreed to its collection.

They also sold lists linking individuals to sensitive attributes, such as medical conditions, religious beliefs, and political activities.

FTC Bureau of Consumer Protection Director Samuel Levine emphasized the significance of protecting Americans’ privacy. “Surreptitious surveillance by data brokers undermines our civil liberties,” Levine said.

The FTC accused Gravy of violating the FTC Act by selling sensitive data, including health and political information, without informed consent. Gravy collected over 17 billion location signals daily from a billion devices, continuing to do so despite consumers’ objections.

This action follows concerns about Venntel’s role in tracking phones at locations like abortion clinics and Black Lives Matter protests.  An investigation by 404 Media and others revealed Venntel’s use of smartphone apps to gather location data without users’ explicit consent.

To address these allegations, the FTC has proposed a settlement prohibiting the companies from selling or using sensitive location data, except in cases involving national security or law enforcement.

The order also mandates the deletion of previously collected data and the creation of a sensitive data program to protect consumer privacy.

The ban underscores increasing scrutiny of location data firms’ practices and their impact on privacy. Senator Ron Wyden, who advocated for protecting military personnel’s data, commended the FTC’s decisive measures, said 404 Media.

Gravy Analytics did not respond to press inquiries. This enforcement action highlights the growing tension between surveillance capabilities and safeguarding civil liberties.