Home Privacy The FTC Spells Out Why It Zeroed In On Kochava

The FTC Spells Out Why It Zeroed In On Kochava

SHARE:
FTC Commissioner Alvaro Bedoya

In the weeks since the Federal Trade Commission sued Kochava in late August for allegedly selling sensitive geolocation data, some have wondered: Why Kochava?

Kochava isn’t the only ad tech company with a location data business. And it arguably has (well, had) a lower profile than SafeGraph, for example, which has been excoriated in the press for selling information tied to abortion clinic visits.

After the FTC filed its suit, Jessica Lee, a partner at the law firm Loeb & Loeb and chair of its privacy, security and data innovations practice, made the point on Twitter that the FTC’s complaint against Kochava read like “an indictment of the business model more than an indictment about the specific practices of one business.”

As in, an indictment of ad tech.

Earlier this week, AdExchanger asked FTC Commissioner Alvaro Bedoya during his keynote at the NAD’s conference on advertising law in Washington, DC, why the commission decided to focus on Kochava rather than any other ad tech company with a location data business.

And, according to Bedoya, Kochava was singled out for a reason.

“I suspect you’re right, that other companies engage in the same practices, but not all of them engage in the practices described in that complaint,” Bedoya said. “That is one of the reasons … I was eager to support our action against that company.”

The FTC’s reasoning

One of the main assertions in the FTC’s complaint is that the data Kochava lists in its data marketplace, known as the Kochava Collective, isn’t anonymized – and raw data isn’t good for your health.

The FTC contends that Kochava failed to adequately protect its data from public exposure and that, until at least June 2022, the company allowed anyone with an AWS account to easily obtain a free data sample and access to more data containing information tied to tens of millions of mobile ad IDs.

This data could then be combined with other data (like someone’s home address from public records or an inference based on the fact that a specific mobile phone spends every night in the same physical place) to identify individuals and track their visits to sensitive locations, including addiction recovery facilities, reproductive health clinics and places of worship.

What the complaint doesn’t say is whether this was actually happening – but the potential for harm was enough for the FTC to take action.

And there is precedent for the FTC taking a stand against the use or potential use of sensitive data in a way that consumers wouldn’t reasonably expect.

Setting an example

And speaking of precedent, that’s another reason why Bedoya voted in favor of filing the complaint against Kochava. (The end vote was 4-1 in favor, with outgoing FTC Commissioner Noah Phillips as the only dissenting opinion.)

Although FTC Chair Lina Khan sets the commission’s overall strategy, Bedoya said that he’s “particularly interested in” cases like Kochava “where precedents could be established that could inform industry as a whole.”

Bedoya couldn’t say much more, because the Kochava case is actively in litigation, but he did say that when cases with the potential to create precedent land on his desk, “those are the ones I spend the most time on, the most time studying and the most time talking to [FTC] staff about.”

For more articles featuring Alvaro Bedoya, click here.

Must Read

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

Google Had Its Day In Court. Now, It’s Amazon’s Turn

Google won’t have to break up its ads business after being declared an online monopolist. Meanwhile, Amazon faces a lawsuit from the FTC alleging that it charged advertisers more than necessary for ecommerce ads.

The FTC’s Amazon Lawsuit Is Ad Tech’s History Of Opacity Repeating Itself

Buy-side experts said it’s another example of a Big Tech platform taking advantage of the lack of transparency built into programmatic ad auctions. And they’re not optimistic change is coming.

How The Fin Tech Clearco Finances Ecommerce Startups (Without Losing Its Shirt)

This week, the Commerce Media Newsletter catches up with a startup from outside the world of data-driven advertising, but with an interesting position when it comes to ecommerce advertising. That’s Clearco, a Canadian fin tech company founded in 2015.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
LOS ANGELES, CALIFORNIA - APRIL 26: Halo Collar CMO Seth Solomons attends a Celebration to Shine a Light On Dog Safety With Halo Collar on April 26, 2022 in Los Angeles, California. (Photo by Stefanie Keenan/Getty Images for Halo Collar)

How Halo Collar Uses Data And Incrementality To Raise Both Awareness And Sales

Halo Collar, a dog collar brand with direct-to-consumer origins, is preparing for its retail expansion by honing its first-party data strategy and incrementality measurement.

tech family cartoon technology family

CartographAI Launched To Help Advertisers Pick The Right Tech Vendors. Now, It’s Helping Vendors Market Themselves, Too

The company is launching an accelerator program to help tech vendors pitch their solutions in a way that makes sense to advertisers.

Comic: Weather Bar

Neuroscience And AI Are Transforming The Weather Company’s Measurement Stack

TWC is building a monetization model that treats weather as both a contextual and an emotional signal, and it’s using AI sales agents to bring it to market.