The FTC’s unprecedented move against data brokers, explained

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“The FTC’s action is significant because of the prohibitions—barring the company from selling data about sensitive locations, rather than just paying fines,” says Justin Sherman, an adjunct professor at Duke’s Sanford School of Public Policy. In other words, it’s more than a slap on the wrist. 

Sherman, who runs a project at Duke focused on the industry and who was involved in the research about military members, adds that this new move is “also notable because the FTC is focused on how certain locations are more sensitive than others.” The idea that people have different rights to privacy in different contexts is similar to the argument the FTC is making in its ongoing lawsuit against the data broker Kochava, which it’s suing on the grounds that it identifies anonymous users without consent and tracks their sensitive location data.

No matter what the FTC does next, data brokers are likely to continue to draw scrutiny for their sketchy practices. The new settlement is also likely to fuel more calls for forceful legislative action against them.

In a statement, Senator Ron Wyden’s office said, “While the FTC’s action is encouraging, the agency should not have to play data broker whack-a-mole. Congress needs to pass tough privacy legislation to protect Americans’ personal information and prevent government agencies from going around the courts by buying our data from data brokers.” 

Maybe something to look forward to in 2024?

What I am reading this week

What I learned this week

A new study found that deplatforming—or kicking someone off of social media, usually because of the spreading of misinformation—reduces overall attention to those figures online. I’d recommend Justin Hendrix’s analysis of the study in Tech Policy Press, in which he explains that the current research on the effects of deplatforming has yielded complex and unclear results. However, this new body of work from researchers at EPFL Switzerland and Rutgers University indicates that while it does have an effect on overall attention, the effect of deplatforming is much higher for lesser-known people. For the most well-known individuals, like former president Donald Trump, deplatforming does not have as much of an impact. It’s really important research as tech platforms hone their misinformation tool kit ahead of a big election year.

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