New York City Could Make It Illegal To Sell Phone Location Data

There’s a solid chance that New York City might become the first city in the United States to ban the sale of geolocation data to third parties. A bill has been introduced today that’s going to make it illegal for mobile app and cellphone companies to sell the location data that’s collected in the city. They would run the risk of hefty fines in the event of a violation.

As per the bill, these companies could see fines of up to $10,000 per day, per user for multiple violations. Users would even have the right to sue the companies that share their data without obtaining permission first.

There’s likely going to be some pushback against this bill since the sale of user location data is a big business. It generates billions of dollars per year for mobile app and telecommunication companies.

This practice has come under some scrutiny recently with the Federal Communications Commission even calling for a federal crackdown against it. Major carriers in the United States have also promised that they will stop selling the location data of their customers. New York City is taking matters into its own hands and not awaiting federal action. It remains to be seen, though, if this bill gets enough support so that it’s passed and becomes the law.

Adnan Farooqui
Categories: Cellphones