The FTC settled with data brokers X-Mode Social and Outlogic for selling precise location data without informed consent and failing to protect sensitive information. The proposed order bans the sale of sensitive location data, requires deletion of collected data, and mandates a comprehensive privacy program. This is the FTC's first action against a data broker for sensitive location data practices.
The proposed order bans X-Mode/Outlogic from selling or sharing sensitive location data, requires deletion of previously collected location data, mandates a comprehensive privacy program, implements supplier assessments, and provides consumers with ways to withdraw consent and delete their data.
In-house legal teams should review all vendor, customer, and data processing agreements where location data is collected, shared, or sold. Focus on clauses defining data scope (especially 'sensitive location data' covering medical clinics, places of worship, shelters), consent mechanisms for geolocation tracking, third-party data sharing/sale permissions, data security obligations, and data retention/deletion policies. Changes may be needed to prohibit the sale of sensitive location data, require explicit opt-in consent for precise location collection, impose stricter security safeguards on third-party data use, and align retention/deletion practices with the order's mandate to delete collected data.
Entity
X-Mode Social and Outlogic, LLC
Also known as: X-Mode Social
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/01/ftc-order-prohibits-data-broker-x-mode-social-outlogic-selling-sensitive-location-data
X Mode Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/X-Mode-Complaint.pdf
X Mode D&O
https://www.ftc.gov/system/files/ftc_gov/pdf/X-Mode-D%26O.pdf
statement chair lina m khan matter x mode social inc outlogi
https://www.ftc.gov/legal-library/browse/cases-proceedings/public-statements/statement-chair-lina-m-khan-matter-x-mode-social-inc-outlogic-llc
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"X-Mode Social and Outlogic"
"FTC Act"
"selling raw location data, failing to obtain informed consumer consent"
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.
The FTC sent warning letters to 24 large healthcare services companies, cautioning that incomplete, inaccurate, or untimely pricing information for scheduled medical care may be unfair or deceptive. The letters urge recipients to review their price-disclosure practices and take corrective action; they announce no fine or formal order.
$1.9M
The FTC alleged that Premier Franchising Group LLC and Franchise Fastlane LLC made deceptive and unsubstantiated claims about the Premier Martial Arts franchise opportunity and violated the Franchise Rule. The proposed settlements require the companies to pay a combined $1.85 million to compensate franchisees, prohibit certain misrepresentations, and require Franchise Rule compliance; certain franchisees may also cancel their agreements without penalty.
The FTC, Utah, and Nevada sued Lens.com Inc., alleging that it advertised artificially low contact lens prices while hiding mandatory checkout charges and misleading consumers about its AutoRefill subscription. The complaint seeks to stop the alleged practices; the court has not yet decided the case, and no penalty or remedy has been imposed.