• by Wendy Davis , Staff Writer @wendyndavis, January 7, 2014

Companies that offer mobile navigation services should do a better job of informing consumers how their location data is used. That's according to a report released this week by the Government Accountability Office.

At the request of Sen. Al Franken (D-Minn.), the GAO examined privacy practices by 10 companies, including providers of in-car navigation systems like OnStar, portable devices like Garmins, and mapping apps like Google Maps. The agency concluded that those companies could be clearer about how they use data.

“All selected companies disclose that they collect and share location data,” the report states. But, it adds, nine of the companies examined offered “broadly worded” reasons for disclosing data, and five companies that share “de-identified” location data don't say why they do so.

“Without clear disclosures, risks increase that data may be collected or shared for purposes that the consumer is not expecting or might not have agreed to,” the report states.

The GAO also points out that the companies it examined allowed consumers to wield some control over data collection, but didn't allow people to request the deletion of data that had been gathered.

Why do companies collect the information? The main reason is to provide directions, information on nearby gas prices or other services that are tied to location. The GAO adds that some of the companies “may also collect location data to provide consumers additional features such as the location of nearby restaurants or points of interest.”

Franken said in a statement that the report shows the need for new legislation to protect location privacy. “It’s just commonsense that all companies should get their customers’ clear permission before they collect or share their location information,” he stated.