Telecommunications firms and mobile-based apps make billions of dollars per year by selling customer location data to marketers and other businesses, offering a vast window into the whereabouts of cellphone and app users, often without their knowledge. That practice, which has come under increasing scrutiny and criticism in recent years, is now the subject of proposed legislation in New York [Editor’s note: the link may be paywalled; alternative source]. If passed, it is believed that the city would become the first to ban the sale of geolocation data to third parties. From a report: The bill, which will be introduced on Tuesday, would make it illegal for cellphone companies and mobile app developers to share location data gathered while a customer’s mobile device is within the five boroughs. Cellphone companies and mobile apps collect detailed geolocation data of their users and then sell that information to legitimate companies such as digital marketers, roadside emergency assistance services, retail advertisers, hedge funds or — in the case of a class-action lawsuit filed against AT&T — bounty hunters. “The average person has no idea they are vulnerable to this,” said Councilman Justin L. Brannan, a Brooklyn Democrat who is introducing the bill. “We are concerned by the fact that someone can sign up for cell service and their data can wind up in the hands of five different companies.”

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