Apple and Google are in trouble over privacy issues with customers. The scandal is called Locationgate, according to Search Engine Land’s Greg Sterling. It has recently been revealed that the iPhone and Android enabled phones are tracking customers’ movements without their consent.

This claim is of course being disputed by Apple and Google, however both companies do utilize mobile tracking software in their products. The software does allow them to track every move a customer makes. An interesting fact: the iPhone collects data even when location services offered are turned off. Now that’s creepy.

Apple has declined to comment on the issue at hand, but Google had this to say:

All location sharing on Android is opt-in by the user. We provide users with notice and control over the collection, sharing and use of location in order to provide a better mobile experience on Android devices. Any location data that is sent back to Google location servers is anonymized and is not tied or traceable to a specific user.

The statement above is not comforting at all. It just confirms that data is being collected. What I – and others in the industry – want to know is what happens to the data and who has access to it.

It has been argued that the data is beneficial to city planners, health officials, and a variety of researchers. The data has proven to be quite revealing of a person’s mood, health, and more. That is great, but what about my right to privacy? I would rather have the ability to keep my location and movements to myself rather than have a researcher poking through it. Apple and Google should give customers to ability to opt-in to location tracking, as well as the ability to opt-out. With Foursquare and Facebook Places, you have the choice to disclose your location. No one is collecting that information without your consent.

Currently, Congress is taking a closer look by launching formal investigations into the practices at both Apple and Google. I am glad that this happening now so that laws can be written and everyone will know where they stand in regards to location tracking via mobile devices. I am unsure of what actions Congress will take, but it will set a precedent for future issues, especially regarding privacy within search logs.

How do you feel about Locationgate? Should Apple and Google be able to track your movements and store that data?

***4/27/11 3:46PM – Apple has finally opened up about location tracking on the iPhone