InMobi has been fined $950,000 (Rs. 64,452,750) for craftily working around app permission that restricts access location. There were two type of data first was the location of user that was used to target the geotargetted ads and another was the Wireless data means InMobi was collecting the data about other devices in the same Geographical area by Wireless network even if the user has turned off the location in the device.
InMobi was using user location data irrespective of user’s consent and was using it to target him for ads. Jessica Rich, director of FTC’s Bureau of Consumer Protection says “InMobi tracked the locations of hundreds of millions of consumers, including children, without their consent, in many cases totally ignoring consumers’ express privacy preferences. This settlement ensures that InMobi will honor consumers’ privacy choices in the future, and will be held accountable for keeping their privacy promises.”
InMobi Deployed location targeting technology on all devices, irrespective of whether or not user has given their consent. InMobi delivered location targeted ads to children, over children’s apps. This violated the Children’s Online Privacy Protection Act (COPPA). The FTC has actually slapped a fine of $4 million (Rs. 27.14 crore), but suspended it to $950,000 (Rs. 6.4 crore) considering the financial condition of the company.
The company is said to destroy all its past collected data and is said not to repeat the same thing. Any further data that is collected will be taken only after user consent. InMobi will also be independently audited for compliance every two years for a period of 20 Years.
InMobi was founded in India and is a Singapore Based Company. It was country’s first Unicorn but no longer enjoys the status.