FTC Fines Data Broker $45 Million for Misusing Data for AI
OmniData Corp was also forced to delete AI models trained on improperly obtained consumer data in a landmark enforcement action.
The U.S. Federal Trade Commission on August 20, 2025, announced a major enforcement action against data brokerage firm OmniData Corp. The company agreed to a $45 million settlement to resolve charges that it unfairly used sensitive consumer information to train its artificial intelligence models.
The FTC's complaint alleged that OmniData used location data and other personal details scraped from third-party applications without obtaining specific consumer consent. This data was then used to build predictive AI models that were sold to clients for advertising and screening purposes.
Algorithmic Disgorgement
A key provision of the settlement requires OmniData to delete all …
Archive Access
This article is older than 24 hours. Create a free account to access our 7-day archive.