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.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

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

Inside The Fall Of Oracle’s Advertising Business

By now, the industry is well aware that Oracle, once the most prominent advertising data seller in market, will shut down its advertising division. What’s behind the ignominious end of Oracle Advertising?

Forget about asking for permission to collect cookies. Google will have to ask for permission to not collect them.

Criteo: The Privacy Sandbox Is NOT Ready Yet, But Could Be If Google Makes Certain Changes Soon

If Google were to shut off third-party cookies today and implement the current version of the Privacy Sandbox, publishers would see their ad revenue on Chrome tank by around 60% on average.

Platforms Are Autogenerating Creative – And It’s Going To Be Terrible

This week, we’re diving into the most important thing in advertising – the actual creative – and how major ad platforms are well on their way to an era of creative innovation. Actually, strike that. I meant creative desolation.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: TFW Disney+ Goes AVOD

Disney Expands Its Audience Graph And Clean Room Tech Beyond The US

Disney expands its audience graph and clean room tech to Latin America, marking the first time it will be available outside the US. The announcement precedes this week’s launch of Disney+ with ads in Latin America.

Advertible Makes Its Case To SSPs For Running Native Channel Extensions

Companies like TripleLift that created the programmatic native category are now in their awkward tween years. Cue Advertible, a “native-as-a-service” programmatic vendor, as put by co-founder and CEO Tom Anderson.

Mozilla acquires Anonym

Mozilla Acquires Anonym, A Privacy Tech Startup Founded By Two Top Former Meta Execs

Two years after leaving Meta to launch their own privacy-focused ad measurement startup in 2022, Graham Mudd and Brad Smallwood have sold their company to Mozilla.