Data broker Kochava agrees to change business practices to settle lawsuit
Mobile device users who sued the data broker Kochava asked a federal judge for final approval to settle a lawsuit in a deal that will force the company to no longer share or sell data revealing sensitive locations.
Kochava is currently embroiled in ongoing litigation with the Federal Trade Commission, which has said that the data broker’s sale of precise geolocation within 10 feet of a device, along with other highly sensitive data, violates the agency’s rule against unfair and deceptive practices.
Kochava has agreed to significant changes to its business practices as part of the deal.
If the judge approves the settlement, Kochava will also no longer be able to directly profit off of location data it pulls from software development kits embedded in apps by selling the data to other parties.
Kochava also has agreed to create an opt-out tool allowing consumers to easily request that their information be removed from the company’s database and ensure that they are placed on a “black list” blocking future collection and sharing of their data.
The agreement, which was shared with the judge on Friday, also includes a $1.5 million payout to attorneys and a payment of $2,500 to each plaintiff not exceeding $17,500 total.
Suzanne Smalley
is a reporter covering privacy, disinformation and cybersecurity policy for The Record. She was previously a cybersecurity reporter at CyberScoop and Reuters. Earlier in her career Suzanne covered the Boston Police Department for the Boston Globe and two presidential campaign cycles for Newsweek. She lives in Washington with her husband and three children.