The Federal Trade Commission (FTC) will ban data broker Kochava and its subsidiary, Collective Data Solutions (CDS), from selling, sharing, or disclosing sensitive location data without consumers’ affirmative, express consent. This action resolves allegations that the companies sold detailed location information from hundreds of millions of mobile devices, potentially revealing individuals’ movements to sensitive venues such as health facilities and places of worship.
The FTC sued Kochava, based in Idaho, in August 2022 for collecting and distributing precise location data without consumers’ awareness or consent, which the agency said violated privacy rights. The complaint asserted that the lack of transparency deprived consumers of the ability to prevent harm from unauthorized data sharing.
Terms of the FTC Order
Under the proposed settlement order, Kochava and CDS are barred from selling or disclosing sensitive location data unless they first obtain a consumer’s explicit consent and the data is used to provide a service directly requested by that consumer. Specific requirements include:
- Establishing a program to identify sensitive locations and prevent their location data from unauthorized sale or disclosure.
- Implementing a supplier assessment process ensuring that all collected location data is backed by consumer consent.
- Reporting incidents to the FTC if third parties violate contractual terms by sharing consumers’ precise location data.
- Allowing consumers to request details about entities that have purchased their location data and providing easy means to revoke consent for future sales.
- Developing a data retention schedule requiring periodic deletion of collected location data.
The FTC’s two commissioners approved the stipulated final order, which now awaits judicial approval in the U.S. District Court for the District of Idaho. Once signed by the court, the order will carry the force of law.
Why it matters
This settlement addresses growing concerns about privacy violations stemming from covert location tracking. Location data linked to sensitive places can reveal personal details about consumers’ health, religious practices, and other private behaviors. The FTC’s order enforces stricter controls and transparency standards, aiming to protect consumers from undisclosed surveillance and unauthorized data resale.
Background
Kochava is a prominent data broker known for collecting granular mobile device location information and selling it to marketers and other third parties. The FTC’s 2022 lawsuit highlighted how such practices can infringe on privacy when consumers are unaware of or cannot control the distribution of their data. The case marks one of the FTC’s significant moves to regulate location data sharing, joining broader efforts to secure consumer privacy in the digital age.
The FTC continues to monitor and investigate data privacy issues, emphasizing enforcement actions to prevent deceptive or unfair data handling practices by companies.
Sources
This article is based on reporting and publicly available information from the following source:
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