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FTC Settles Kochava Case, Barring Sale of Sensitive Location Data Without Consent

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Why it matters

The Federal Trade Commission has settled its case against Idaho data broker Kochava Inc. and its subsidiary, Collective Data Solutions, under Section 5 of the FTC Act. The proposed final order prohibits both companies from selling, licensing, or sharing precise location data without affirmative express consumer consent tied to a specific requested service. The FTC alleged that Kochava sold location data from hundreds of millions of mobile devices that could track visits to reproductive health clinics, places of worship, addiction recovery centers, and shelters—exposing consumers to stalking, discrimination, and violence. The settlement also mandates a sensitive-location compliance program, supplier consent verification, incident reporting to the FTC, consumer access to data recipients, and data deletion protocols.

The settlement resolves a dispute that began with the FTC's August 2022 lawsuit and proceeded through contested litigation. Kochava had fought the agency's claims in court, making this case a significant test of the FTC's authority over commercial location-data markets. The parties have reached resolution without trial, though the specific terms of the final order remain subject to public comment.

For practitioners, this settlement establishes a concrete regulatory floor: sensitive location data cannot be monetized without explicit consumer consent. Data brokers, ad-tech platforms, and mobile analytics firms should review their location-data practices against this consent-based framework. The case signals the FTC's willingness to police location markets under existing consumer-protection authority, likely foreshadowing enforcement against similar practices across the industry.

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