In 2021, Near, a company specializing in collecting and selling location data, proudly declared itself as holding “The World’s Largest Dataset of People’s Behavior in the Real World,” encompassing data from 1.6 billion individuals across 44 countries. The following year, Near went public through a Special Purpose Acquisition Company (SPAC) with a valuation of $1 billion. However, just seven months later, the company filed for bankruptcy and has since agreed to sell its assets.
For the 1.6 billion individuals represented in Near’s dataset, a crucial concern arises: What will become of Near’s vast collection of location data? With the company’s assets up for sale, any acquiring entity could potentially gain access to this extensive information.
The possibility of sensitive location data, including information from places like abortion clinics, being sold during Near’s bankruptcy proceedings has raised significant concerns in Congress. Recently, Senator Ron Wyden from Oregon wrote to the Federal Trade Commission (FTC), urging the agency to protect consumers and investors from Near’s questionable practices. He highlighted his office’s investigation into the company and called for the FTC to intervene in the bankruptcy process to ensure that all location and device data related to Americans is promptly destroyed and not sold to other data brokers.
Wyden’s request draws parallels to a 2010 FTC intervention where the agency blocked the use of eleven years’ worth of subscriber data during the bankruptcy of XY Magazine, a publication aimed at young gay men. In that instance, the FTC mandated the destruction of the data to prevent its misuse.
Wyden’s investigation into Near was prompted by a May 2023 report from The Wall Street Journal, which revealed that Near had licensed location data to the anti-abortion group Veritas Society. This data was used to target advertisements at visitors of Planned Parenthood clinics in an effort to discourage women from seeking abortions. The investigation also uncovered that Near had been selling its location data to the Department of Defense and intelligence agencies. As of now, Near has not responded to requests for comment on these revelations.
According to Near’s privacy policy, all collected data can be transferred to new owners, explicitly listing “prospective buyers of our business” as potential recipients. This type of clause is common in privacy policies during business transactions. However, complications arise when the sold company possesses data containing sensitive information.
Recently, a bankruptcy court filing revealed that Wyden’s requests were granted. The court order imposed restrictions on the use, sale, licensing, or transfer of location data collected from sensitive locations in the United States. It requires any company purchasing this data to establish a “sensitive location data program” with detailed policies and ensure ongoing monitoring and compliance. This includes creating a list of sensitive locations such as reproductive health care facilities, doctor’s offices, places of worship, mental health care providers, correctional facilities, and shelters. Additionally, the order mandates that companies must cease any collection, use, or transfer of location data unless consumers have explicitly provided consent.
In a statement, Wyden praised the FTC for stepping in to prevent the misuse of Americans’ sensitive location data. He emphasized the importance of protecting this data, especially in light of the new legal threats to women following the Supreme Court’s June 2022 decision to overturn Roe v. Wade. Wyden stated, “The threat posed by the sale of location data is clear, particularly to women who are seeking reproductive care.”
The bankruptcy order also shed light on how data brokers license data to one another.
Near’s list of contracts included agreements with several location brokers, advertising platforms, universities, retailers, and city governments. However, it remains unclear whether these agreements involved Near licensing data to others, Near acquiring data from these companies, or both.
As data privacy continues to be a pressing issue, the case of Near underscores the urgent need for comprehensive legislation to protect individuals’ personal information from being exploited by data brokers and to ensure that sensitive data does not fall into the wrong hands during corporate bankruptcies.
