The Federal Trade Commission (FTC) has taken decisive action to prohibit Kochava and its subsidiary from trading in detailed location data, a move aimed at protecting consumer privacy.

This decision addresses accusations that Kochava put millions of mobile users at risk by disclosing their whereabouts without proper consent.

The FTC's legal action against the Idaho-based Kochava began in August 2022, asserting that the company was profiting from the sale of accurate geolocation details linked to a vast number of mobile devices. This practice enabled outside parties to decipher users' movements and daily activities, including trips to medical facilities and religious sites, as noted by the FTC. The agency highlighted that most consumers were not adequately informed about or able to consent to this invasive data collection, raising serious concerns about potential abuses.

Under a new proposed settlement agreement, Kochava and its affiliated company, Collective Data Solutions (CDS), are prohibited from selling or sharing sensitive location information unless they secure explicit and clear consent from users. Furthermore, even when such permission is given, the data can only be utilized for specific services requested by the consumer, significantly curtailing commercial use.

Kochava specializes in data analytics related to mobile applications, providing services such as advertising measurement and data brokerage through its subsidiary, CDS, which manages many of its data operations.

The FTC's ruling enforces stringent compliance measures regarding how location data is managed. Kochava and CDS are required to create a system that can identify and prevent the transfer of information pertaining to sensitive locations. Additionally, they must establish a verification process to ensure that collected data has valid user consent. The companies must also report any misuse of location data by third parties that contravenes their contractual guidelines.

Moreover, the order pushes for enhanced transparency and user empowerment. Consumers will have the right to request details about which entities have accessed their location data and will be given a clear option to withdraw consent for future data sharing. A policy regarding data retention will also be enforced, ensuring that collected data is deleted in a timely manner.

For individuals worried about their location privacy, it is advisable to manage app permissions, turn off non-essential location services, and scrutinize the data-sharing policies of their applications.

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