Mobile Tracking Firm Nomi Gets FTC Wrist-Slap


The Federal Trade Commission has gone after a mobile tracking firm that it says gathered information on 9 million consumers’ mobile devices in the first nine months of 2013. The agency alleges that Nomi, a small New York firm that was acquired by retail analytics company Brickstream in 2014, misled people when it said they could opt out from its tracking technology in stores, since no opt-out tool was available.

Mobile trackers have become a popular presence in retail outlets, entertainment arenas and even parks and museums. The settlement could signal future investigations by the commission related to the burgeoning and controversial world of mobile tracking via beacons and other technologies.

According to the FTC settlement, “Consumers who did not opt out on Nomi’s website and instead wanted to make the opt-out decision at retail locations were unable to do so, despite the explicit promise in Nomi’s privacy policies. Consumers were not provided any means to opt out at retail locations and were unaware that the service was even being used.”

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