FTC Sues Data Broker Kochava Over User Data Sale

The Federal Trade Commission has filed a lawsuit against data broker Kochava for selling geolocation data that could be used to trace individuals’ movements, a press release said Monday (Aug. 29).

By selling the data, the FTC said Kochava allows malicious actors to identify individuals and expose them to stalking, job loss, discrimination or physical violence. Individuals could be traced to such places as reproductive health clinics, domestic violence shelters, and places of worship.

The suit seeks to halt Kochava’s selling of geolocation data, making them delete the information it has collected.

“Where consumers seek out health care, receive counseling, or celebrate their faith is private information that shouldn’t be sold to the highest bidder,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “The FTC is taking Kochava to court to protect people’s privacy and halt the sale of their sensitive geolocation information.”

Kochava didn’t respond to a request for comment by PYMNTS.

Kochava, based in Idaho, buys vast amounts of location information from mobile devices, which is packaged into customized data that match unique mobile device ID numbers with timestamped latitude and longitude locations, which can help with advertising and analysis of foot traffic.

People are reportedly not always aware their data is being used this way, and don’t have control over what Kochava does with it.

The FTC has also recently warned about scams involving student loan forgiveness, PYMNTS wrote.

Read more: FTC Warns Public About Student Loan Forgiveness, Payment Pause Scams

The scammers have been falsely claiming they can help people sign up for student loan forgiveness, getting them in early or getting them guaranteed eligibility, which the FTC said are all lies.

“Never pay up front for student loan forgiveness,” the FTC alert stated. “Only scammers will charge you in advance.”

There have also been scams related to student loans, which have been paused numerous times since the pandemic began.

The agency said consumers can avoid scams by signing up for Department of Education updates to be notified when the process for debt forgiveness begins. They can also make sure their federal loan servicer has their correct information.