New bill would prohibit sharing of users&#39; mobile location data

Legislation proposed by Democratic New York City Councilmember Justin L Brannan could prevent the sale of customer mobile location data, with fines of up to $10,000 per day for those in violation. The bill, set for review by the office of Mayor Bill de Blasio, would only permit location data sharing when firms provide a service customers explicitly requested. If passed, the legislation could threaten US location-targeted advertising sales, which generated approximately $21bn in 2018.

Telecommunications firms and mobile-based apps make billions of dollars per year by selling customer location data to marketers and other businesses, offering a vast window into the whereabouts of cellphone and app users, often without their knowledge.

That practice, which has come under increasing scrutiny and criticism in recent years, is now the subject of a proposed ban in New York. If the legislation is approved, it is believed that the city would become the first to forbid the sale of geolocation data to third parties.

The bill, which was introduced on Tuesday, would make it illegal for cellphone companies and mobile app developers to share location data gathered while a customer’s mobile device is within the five boroughs.

Cellphone companies and mobile apps collect detailed geolocation data of their users and then sell that information to legitimate companies such as digital marketers, roadside emergency assistance services, retail advertisers, hedge funds or — in the case of a class-action lawsuit filed against AT&T — bounty hunters.