Editor’s Note: This article examines the coordinated efforts of the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) to enhance consumer privacy protections in the digital age. It details key enforcement actions against data brokers such as Gravy Analytics, Venntel, and Mobilewalla and explores the broader governmental initiative, including Executive Order 14117, to secure Americans’ sensitive personal data. The piece highlights the scale of data collection, the implications for civil liberties and national security, and the evolving regulatory framework designed to balance technological innovation with accountability.


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Industry News – Data Privacy and Protection Beat

Bolstering Consumer Privacy: FTC and CFPB Lead Charge Against Data Misuse

ComplexDiscovery Staff

Recent actions by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) underscore a robust federal response to data privacy violations. These measures, including cases against data brokers like Gravy Analytics, Venntel, and Mobilewalla, and the CFPB’s proposed rule targeting sensitive data sales, aim to enhance consumer protections in the digital age. The initiatives are complemented by a broader government strategy, exemplified by Executive Order 14117, to safeguard Americans’ sensitive personal data.

Key Cases Highlighting Data Privacy Concerns

Gravy Analytics and Venntel

The FTC’s proposed consent order against Gravy Analytics and Venntel represents a landmark action targeting data brokers who allegedly violated consumer privacy rights. These companies were accused of profiting from sensitive location data without obtaining proper consent, including tracking individuals at healthcare facilities, religious sites, and political gatherings. The FTC’s order prohibits these companies from selling or utilizing such data, mandates the deletion of all non-compliant records, and imposes fines of up to $51,744 per violation.

The scale of these violations is significant. Gravy Analytics claimed to process over 17 billion signals from approximately one billion mobile devices daily. These practices exposed consumers to risks of discrimination, stigmatization, and exploitation while raising questions about government agencies’ use of data from brokers like Venntel.

Mobilewalla: An Expanding Scope of FTC Actions

In a parallel case, the FTC targeted Mobilewalla, a data broker accused of collecting over 500 million unique consumer advertising identifiers paired with precise location data between January 2018 and June 2020. The complaint alleged that Mobilewalla collected sensitive information, including visits to health clinics, places of worship, and LGBTQ+-related locations. The FTC’s order prohibits Mobilewalla from selling sensitive location data, collecting data for non-auction purposes, and using location data to reveal private home addresses.

These actions against Gravy Analytics, Venntel, and Mobilewalla reflect a deliberate effort by the FTC to curb exploitative practices in the data brokerage industry. The cases also highlight the broader implications of data collection, particularly when such data is misused to target vulnerable populations or facilitate surveillance.

CFPB’s Proposed Rule: Regulating Data Brokers

Complementing the FTC’s enforcement efforts, the CFPB has proposed a rule to regulate data brokers under the Fair Credit Reporting Act (FCRA). This rule aims to bring companies like Experian and Equifax under stricter compliance standards, requiring explicit consumer consent before selling sensitive personal data, including financial information and Social Security numbers.

Rohit Chopra, Director of the CFPB, has called out the dangers posed by unregulated data sales, emphasizing that these practices enable harmful activities like stalking and fraud. The proposed rule seeks to close loopholes in the data brokerage industry, aligning these companies’ responsibilities with those of credit reporting agencies to prevent unauthorized use of sensitive personal data.

The Broader Government Initiative

The actions of the FTC and CFPB are part of a larger federal strategy to protect Americans’ sensitive data. On February 28, 2024, President Biden signed Executive Order 14117, titled “Preventing Access to Americans’ Bulk Sensitive Data and United States Government-Related Data by Countries of Concern.” This executive order aims to prevent foreign adversaries from accessing Americans’ sensitive personal information and includes directives for multiple federal agencies to implement stricter data protection rules.

Described by the White House as “the most significant executive action any President has ever taken to protect Americans’ data security,” the order represents a pivotal step in safeguarding national security and consumer privacy. It mandates the development of new regulations to control the flow of sensitive data to countries of concern and reinforces the importance of governmental oversight in the digital economy.

The Scale and Implications of Data Collection

The cases against Gravy Analytics, Venntel, and Mobilewalla reveal the staggering scope of data collection in the modern digital ecosystem. Additionally, the sensitive nature of this data—including visits to military installations, childcare facilities, political gatherings, and locations supporting racial and ethnic communities—illustrates the far-reaching implications of unregulated data practices.

These large-scale data collection practices not only compromise individual privacy but also pose risks to civil liberties and national security. By targeting data brokers who exploit such information, the FTC and CFPB aim to address these vulnerabilities and establish a foundation for stronger regulatory oversight.

Privacy and Accountability in the Digital Age

The recent actions by the FTC and CFPB reflect a coordinated federal effort to protect consumer privacy in an increasingly complex digital landscape. From addressing unauthorized data collection by brokers like Gravy Analytics, Venntel, and Mobilewalla to proposing stricter rules for the industry, these measures emphasize the need for accountability and transparency in data handling practices.

However, the success of these initiatives will depend on consistent enforcement, public support, and the ability to navigate political and industry resistance. As these regulatory efforts unfold, they represent a critical step toward balancing technological innovation with consumer rights and civil liberties. By aligning enforcement with broader governmental initiatives like Executive Order 14117, federal agencies are setting the stage for a privacy-centric digital economy that prioritizes the protection of sensitive personal data.

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