Biden Administration Halts Company’s Sale of Medical Visit Data in Landmark Privacy Settlement

The Biden administration has secured a landmark settlement, marking the Federal Trade Commission’s (FTC) first ban on selling sensitive location data. Outlogic, formerly known as X-Mode Social, faced the FTC’s action after it was found to be collecting and selling data on individuals’ medical visits, raising concerns about privacy, especially related to visits to abortion providers.

Key Points:

1. Government Intervention: The FTC, following an investigation, reached a settlement with Outlogic, prohibiting the company from selling data on people’s visits to medical centers. This marks the government’s first significant enforcement on location data privacy since the issuance of a 2022 executive order aimed at enhancing privacy protections, particularly for those seeking abortion services.
2. Crackdown on Health Privacy Violations: The FTC’s action comes in the wake of the U.S. Supreme Court’s decision overturning Roe v. Wade in 2022, prompting the Biden administration to prioritize privacy protections related to reproductive health care services through an executive order issued in July 2022.
3. Location Data Privacy Concerns: With no federal law against selling location data from various devices, companies like Outlogic can collect and share sensitive location information, tracking individuals to their homes, workplaces, and other sites. Privacy advocates and lawmakers have raised concerns about potential misuse of such data.
4. FTC Chair’s Statement: FTC Chair Lina Khan emphasized the significance of the settlement, stating, “The FTC’s action against X-Mode makes clear that businesses do not have free license to market and sell Americans’ sensitive location data.” The ban aims to protect individuals from intrusive data practices and corporate surveillance.
5. Details of Violations: Outlogic, in one contract, collected location data on individuals visiting medical facilities and then shared this information with a clinical research company for marketing and advertising purposes. While the data did not include information on abortion clinics, the FTC deemed it a significant privacy violation.
6. Settlement Terms: The settlement requires Outlogic to delete all previously collected data without consent and establish a clear opt-out mechanism for individuals unwilling to participate in the company’s location data collection.
7. Company’s Response: Outlogic disputed the FTC’s announcement, stating that its investigation found no misuse of data. The company argued that its contractual restrictions prevented customers from identifying individuals linked to sensitive locations like healthcare facilities.
8. Broader Data Collection Practices: Outlogic gathers data from over a hundred mobile apps, including navigation, weather, and fitness apps. Previous reports have highlighted the company’s receipt of data from Muslim prayer apps and family-tracking and dating apps.
9. Political and Legislative Response: Senator Ron Wyden (D-Ore.) called for stronger privacy regulations, emphasizing the need for Congress to pass tough privacy legislation to protect personal information and prevent government agencies from purchasing data from brokers.

As the Biden administration takes a decisive step in enforcing privacy measures, the settlement with Outlogic sets a precedent in the ongoing debate over data privacy and the regulation of location data. The impact on the broader data broker industry and the evolving landscape of privacy protection remains to be seen.