FTC Approves Final Order In Nomi Technologies Case

After a public comment period, the Federal Trade Commission has approved a final order resolving the Commission’s complaint against Nomi Technologies for misleading consumers about the available choices to opt-out of the company’s mobile device tracking program.

The settlement was first announced in April 2015. In its complaint, the FTC alleged that Nomi misled consumers with promises that it would provide an in-store mechanism for consumers to opt out of tracking and that consumers would be informed when locations were using Nomi’s tracking services. The complaint alleges that these promises were not true because no in-store opt-out mechanism was available, and consumers were not informed when the tracking was taking place.

Under the terms of the settlement with the FTC, Nomi will be prohibited from misrepresenting consumers’ options for controlling whether information is collected, used, disclosed or shared about them or their computers or other devices, as well as the extent to which consumers will be notified about information practices.

The Commission vote to approve the final order and letters to commenters was 3-1, with Commissioner Maureen Ohlhausen voting no. Commissioner Julie Brill issued a statement, and Commissioner Ohlhausen issued a dissenting statement.   

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.