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In ordinary words.
Your phone's movements can become someone else's product.
In legal terms.
Consent, sensitive-data and unfair-practice restrictions apply; enforcement has targeted unlawful sales.
Where it stops being legal.
This practice is not categorically legal. Applicable federal, state and local laws, disclosures, procedural protections and the specific facts can make particular conduct unlawful.
General U.S.-focused information. Cases and statutes may have jurisdiction-specific exceptions. This citation may be a general primer; verify the governing primary authority. Not legal advice.