While smartphones give users access to location-based applications such as real-time navigation aids, free- or reduced-cost mobile applications, and faster responses in emergencies, how providers use location data is essentially unregulated. Advocates point out that consumers (1) are generally unaware of how their locations are shared with, and used by, third parties; (2) could be subject to increased surveillance when location data are shared with law enforcement; and (3) could be at higher risk for identity theft or threats to physical safety when companies keep this information for long periods or share it with third parties that do not adequately protect it.
Industry associations and privacy advocates have recommended voluntary guidelines, but their use varies from company to company.
The General Accountability Office (GAO) looked into this issue recently and recommends that the U.S. Department of Commerce’s National Telecommunications and Information Administration work with industry, consumer, and privacy groups to develop an industry-wide code of conduct. GAO also urged the FTC to issue guidance on appropriate actions mobile companies should take to protect location data privacy.
