FTC Bans Data Broker Kochava From Selling Location Data Without Consent
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WASHINGTON — The Federal Trade Commission announced Monday a ban prohibiting data broker Kochava and its subsidiary, Collective Data Solutions, from selling precise location data without explicit consumer consent. The settlement resolves charges that the company collected and sold geolocation information from hundreds of millions of mobile devices without authorization, enabling tracking to sensitive locations such as health clinics and domestic violence shelters.
The order, issued May 5, 2026, marks a significant regulatory action against the data brokerage industry. The FTC alleged that Kochava’s practices violated Section 5 of the FTC Act by engaging in unfair and deceptive practices. The company is now required to obtain clear, affirmative consent from consumers before collecting or selling their location data. The ban applies to Kochava and Collective Data Solutions indefinitely.
Kochava, based in New York, has been a major player in the mobile advertising ecosystem, providing location analytics to advertisers and developers. The FTC investigation revealed that the company aggregated location data from mobile applications, often without users being informed that their movements were being tracked and sold to third parties. This data included precise coordinates that could reveal visits to sensitive locations, raising privacy concerns.
The settlement does not require Kochava to pay a monetary penalty but imposes strict compliance measures. The company must implement a comprehensive privacy program, undergo regular audits, and notify the FTC of any changes to its data practices. Failure to comply could result in significant civil penalties.
Consumer privacy advocates have welcomed the settlement as a necessary step toward protecting individuals from invasive tracking. The Electronic Privacy Information Center stated that the order sets a precedent for holding data brokers accountable for their practices. However, some industry representatives argue that the ban could stifle innovation in location-based advertising and analytics.
The FTC emphasized that the settlement aims to prevent future harm to consumers by ensuring that data brokers obtain meaningful consent before selling sensitive information. Commission Chair Lina Khan noted that the order reflects the agency’s commitment to safeguarding privacy in the digital age.
Kochava has not commented publicly on the settlement. The company’s website remains active, and it continues to offer data services to clients. It is unclear whether the ban will affect existing contracts or how the company will adjust its business model to comply with the new restrictions.
The case highlights growing scrutiny of data brokers by federal regulators. As mobile applications increasingly rely on location data for functionality and advertising, the FTC’s action signals a shift toward stricter oversight of the industry. Other data brokers may face similar investigations as the agency seeks to enforce privacy standards.
The settlement is subject to a 30-day public comment period before becoming final. If no objections are raised, the ban will take effect immediately, reshaping how location data is collected and sold in the United States.