Nomi Technologies, which places sensors in its client's stores, allowing these clients to track their customers' movements through the stores, has reached a settlement with the FTC, which charged it with misleading customers in its privacy policy.

Nomi uses its sensors to collect information about the customers using their mobile devices MAC addresses (a MAC address is a digital ID that is unique to any device that can connect to the internet). Thereafter, it uses the information obtained by it to inform its clients of how many customers have entered or avoided entering their stores, which customer is a returning customer, and more. 

Although under its privacy policy, Nomi declared it will inform customers whenever a tracking is taking place, and will also provide them with an in-store mechanism to opt-out of that tracking, in practice it did neither of these.

In the settlement reached between Nomi and the FTC, the company has committed to disclose and inform its clients' customers, who are subject to data collection, of its data collection practices, and also to avoid any misrepresentation of information in its privacy policy.