Judge dismisses FTC data privacy lawsuit against Kochava

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Update:

• The Federal Trade Commission (FTC) must strengthen its consumer harm assertions if it wants to move forward with a privacy data lawsuit against Kochava, a judge ruled.
• Idaho U.S. District Judge B. Lynn Winmill dismissed Kochava’s preemptive suit to shut down the commission’s claims because the mobile app analytics provider failed to show any viable cause of action supporting its injunctive relief.
• The FTC’s suit accuses the company of unlawfully selling geolocation data that could enable third parties to track mobile device users to and from sensitive locations.
• In his order, Judge Winmill wrote the FTC has failed to allege Kochava’s “purported privacy intrusion practices” creates a “substantial injury” to consumers.

FTC Kochava lawsuit overview: 

• Who: A federal judge in Ohio has declined to dismiss a lawsuit filed by the Federal Trade Commission against Kochava Inc. 
• Why: The FTC claims Kochava violated federal law by allegedly selling sensitive geolocation data of hundreds of millions of mobile device users without their consent.
• Where: The lawsuit was filed in Idaho federal court.

(Feb. 27, 2023)

A federal judge in Ohio has declined to dismiss a lawsuit filed by the Federal Trade Commission (FTC) against Kochava Inc. over claims the mobile app analytics provider unlawfully sold sensitive geolocation information. 

The judge said that, while “fact-driven” issues still remained with the lawsuit, the most he would do is order the FTC to repair some “technical shortcomings” that he ruled existed in its claims, Law360 reports. 

The FTC is accusing Kochava of violating federal law by allegedly selling geolocation data that belongs to hundreds of millions of mobile device users without their consent. 

The agency argues the alleged misconduct by Kochava could expose the mobile device users to harmful conduct such as discrimination, stalking, emotional distress, physical violence, discrimination or other harm, reports Law360. 

Kochava argues FTC has failed to adequately plead claim under unfairness prong of Section 5 of FTC Act

Kochava has reportedly argued, meanwhile, that the FTC has failed to adequately plead its claim under the unfairness prong of Section 5 of the FTC Act, which would enable the agency to crack down on acts or practices that would cause consumers “substantial” injury. 

Section 5 of the FTC Act would only kick into effect for consumers if the injuries caused by the acts and practices could not be “reasonably avoided” and were not able to be exceeded by “countervailing benefits to consumers or to competition,” Law360 reports. 

Kochava has further reportedly argued the data it sells is only “general coordinates” and that the company cannot actually be linked back to a specific user without someone having to take “significant effort” while using third-party information. 

The judge ruled, however, that he didn’t find it reasonable for a mobile device user to have to turn off before going into certain places, such as visiting a doctor, going to a courthouse — for work, in his case — or attending church, Law360 reports. 

Last year, the head of the FTC’s consumer protection bureau warned advertisers that he would not hesitate to seek out monetary penalties for those found to be attempting to deceive consumers. 

Have you had your geolocation data sold to a third-party without your consent? Let us know in the comments.

The FTC Kochava lawsuit is Federal Trade Commission v. Kochava Inc., Case No. 2:22-cv-00377, in the U.S. District Court for the District of Idaho.

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