bbieron@platformeconomyinsights.com

Mobile Device Location Data Broker Kochava Settles Privacy Class Action

Feb 12, 2025

Report from MediaPost

In Brief – Kochava has reached a settlement in a private class action lawsuit that will require the data broker to make several major privacy changes. The agreement filed with US District Court Judge B. Lynn Winmill requires the company to implement six policy changes, including allowing consumers to opt out of the collection of their geolocation data through a simple web form, block the sharing or use of raw location data associated with so-called “sensitive” venues including health care facilities, schools, and jails, and ensure that location data that is collected during the operations of an app can only be used by that app’s developers unless the user has consented to general location sharing. The company also agreed to pay the plaintiffs’ lawyers $1.5 million and provide $17,500 to each of the lead class members, but beyond that there was no financial award. If approved by Judge Winmill, the settlement will resolve several lawsuits that were filed in 2022 and 2023 after the US Federal Trade Commission charged Kochava with acting unfairly by allegedly selling mobile device data that could expose sensitive information, such as whether people visited doctors’ offices or religious institutions.

Context – Judge Winmill is also presiding over the FTC’s lawsuit against Kochava. The judge dismissed the initial FTC foray as too “theoretical” and that failed to show evidence that the sale or use of the data collected by Kochava caused any actual substantial injuries. But he agreed in his review of the subsequent effort that it was possible that if Kochava’s business customers could purchase data that is granular and non-anonymized that it could expose consumers “to significant risks of secondary harms” and could be an “unfair” trade practice. Kochava’s CEO has argued that the regulator’s lawsuit was “really about the FTC attempting to make an end-run around Congress to create data privacy law.” Although there were widespread business concerns with the regulatory activism of the FTC led by Chair Lina Kahn, the new Chairman, Andrew Ferguson, did support the filing of the FTC’s second amended complaint against Kochava last July.

View By Monthly
Latest Blog
Dutch Regulator Opens Digital Services Act Investigation of Roblox

Report from NL Times In Brief – The Netherlands Authority for Consumers and Markets (ACM) has launched a formal Digital Services Act (DSA) investigation of Roblox over concerns that the online gaming platform may not be doing enough to protect children. The DSA...

EU Commission Moves to Stop Meta from Banning Chatbots on WhatsApp

Report from Wall Street Journal In Brief – The European Commission has informed Meta that it plans to block the company’s ban on third-party AI chatbots from operating over WhatsApp. The antitrust regulator has reached a preliminary finding that Meta’s policy could...

Department of Justice and State AGs Appeal Google Search Remedies Order

Report from Bloomberg In Brief – The US Department of Justice has announced that it notified the Federal Court of Appeals for the District of Columbia that it will appeal US District Judge Amit Mehta’s remedies order in the federal antitrust lawsuit that found Google...

Governor Newsome Drops Funding for Media from California State Budget

Report from SFiST In Brief – The latest budget proposal from California Governor Gavin Newsom (D) has eliminated funding for the News Transformation Fund, a state initiative to pay millions of dollars to California media companies. The fund was announced in 2024 as...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required