FTC targets Mobilewalla over use of real-time bidding location data

The Federal Trade Commission (FTC) has leveled charges against Mobilewalla, accusing the company of unlawfully obtaining and utilizing consumer location data from real-time bidding (RTB) ad exchanges.

According to the FTC’s complaint, Mobilewalla allegedly exploited vulnerabilities in digital advertising ecosystems to gather location data at scale. The data included device identifiers and precise geolocation details, often retained regardless of whether Mobilewalla succeeded in winning the RTB auction. Between 2018 and June 2020, around 60% of the company’s location data reportedly originated from RTB exchanges. The FTC further alleges that Mobilewalla used the data for purposes beyond advertising, such as creating “geofences” around healthcare facilities and employee residences to enable targeted recruitment efforts.

Mobilewalla has agreed to settle the case, though it denies any wrongdoing. As part of the settlement, the company will be barred from collecting or retaining location data obtained through RTB exchanges for purposes other than participating in the auctions. Furthermore, the company is prohibited from using location data linked to sensitive locations, such as healthcare facilities, religious establishments, and political gatherings.

The FTC contends that Mobilewalla’s practices extended beyond data retention. For example, the company allegedly developed audience segments based on sensitive characteristics, such as medical conditions and religious beliefs, derived from location data. Critics, however, have highlighted gaps in the FTC’s argument, particularly regarding evidence of consumer harm. Republican FTC Commissioner Melissa Holyoak dissented, stating that the complaint lacked sufficient detail on how the data practices caused substantial injury to consumers.

Mobilewalla has faced criticism since at least 2020, when it published a demographic analysis of Black Lives Matter protesters based on location data. This prompted lawmakers, including Senator Ron Wyden, to call for an FTC investigation into bidstream data usage by Mobilewalla and other brokers. Critics argue that many companies exploit RTB systems to collect data without genuine intentions of participating in ad delivery.