Outlogic agrees to stop selling sensitive location data in settlement with FTC

In a landmark settlement, Virginia-based data broker Outlogic (formerly X-Mode Social) agreed to stop selling sensitive location data that tracks individuals’ movements. The agreement with the Federal Trade Commission (FTC) resolves allegations that Outlogic violated consumer privacy by distributing consumer data without consent to various entities, including advertisers and government contractors.

The FTC emphasized that until last May, Outlogic had not taken steps to exclude sensitive locations such as doctors’ offices and places of worship from the raw data it sold. The company, which positions itself as the second-largest location data company in the United States, has also pledged to delete all illegally obtained sensitive location data and not share that information unless consumers explicitly consent to its use.

Federal Trade Commission Chairwoman Lena Khan highlighted the risks posed by unregulated selling of location data, saying it could lead to harassment and even physical harm. She called for stronger protections against “uncontrolled corporate surveillance”.

Outlogic typically collects data through its apps, third-party software applications, and through purchases from data aggregators. Notably, the company provides buyers with “audience segmentation” data that identifies different groups, including those on military bases and firehouses.

Khan criticized the data brokerage industry for relying on vague disclosures as a means of justifying the use and sale of people’s sensitive location data. In 2021, X-Mode was acquired by Atlanta-based company Digital Envoy and later renamed Outlogic.

In response to the FTC’s statement, Outlogic said it disagreed with the implications of the FTC’s position, insisting there was no evidence of misuse of location data. The company claims that since its founding in 2013, it has prohibited customers from linking their data to sensitive locations, including medical facilities.

Reuters contributed to this article.

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