FTC Prohibits Kochava from Selling Location Data

The Federal Trade Commission (FTC) decided on May 6, 2026, to prohibit the data broker Kochava and its subsidiary Collective Data Solutions (CDS) from selling location data of American consumers without their explicit consent. This action follows allegations that Kochava sold precise geolocation data from hundreds of millions of mobile devices. The FTC found that Kochava collected data that allowed tracking users' movements over extended periods. This information was gathered and sold without the knowledge or consent of the individuals involved.

The agency argues that this violates privacy regulations and endangers consumer privacy. As part of the settlement, Kochava is required to delete all collected location data and refrain from collecting new data unless consumers provide their explicit consent. This represents a significant step in regulating the data broker industry, which has faced increasing scrutiny in recent years. The FTC has emphasized that protecting consumer privacy is one of its top priorities. The agency plans to take further action against companies that violate privacy laws.

This decision could also impact other data brokers that employ similar practices. Kochava has previously argued that the collected data is anonymized and does not contain personal information. However, the FTC has determined that anonymization is insufficient to protect user privacy. The agency pointed out that even anonymized data can be used in combination with other information to identify individuals. The FTC's decision could also have legal consequences for Kochava.

The company may face additional penalties or lawsuits if it violates the new requirements. Experts warn that this could set a precedent for future privacy cases. In recent years, the FTC has increasingly taken action against companies that violate privacy regulations. In 2025, several major tech companies were fined heavily for failing to adequately protect user privacy. These developments indicate that regulation in the area of privacy is gaining importance.

The FTC's decision is welcomed by privacy advocates who have long pointed to the need for stricter regulation of the data broker industry. These groups argue that consumers have a right to control their personal data and that companies should be transparent about the use of this data. The FTC has announced that it will continue to monitor the practices of data brokers to ensure that consumer rights are upheld. The agency plans to publish further guidelines in the coming months that will clarify the requirements for consumer consent.

The decision takes effect immediately, and Kochava has until June 1, 2026, to implement the necessary measures. The FTC will monitor compliance with the new regulations and may take further action if necessary. "We will ensure that consumers have control over their data and that companies respect privacy," said an FTC spokesperson.