Why Kochava Is a Risky Data Provider | Data Allegiance Analysis

Kochava (name changed to Collective Data Solutions), a major player in mobile advertising and location data brokerage, faces serious allegations about its business practices.

Data Allegiance's expert analysis reveals why Kochava is considered a high-risk data provider, highlighting ongoing legal actions, data privacy concerns, and reputational dangers for businesses using Kochava’s services.

1. FTC Lawsuit: Kochava Accused of Selling Sensitive Location Data

In August 2022, the Federal Trade Commission (FTC) filed a lawsuit against Kochava for allegedly selling precise geolocation data without consumers’ consent.This data could reveal visits to highly sensitive locations, including:

• Reproductive health clinics

• Places of worship

• Homeless and domestic violence shelters

• Addiction recovery centers

The FTC warns that such exposure could cause stigma, discrimination, emotional harm, and even physical danger.

➔ Source: FTC Sues Kochava for Selling Location Data

2. Federal Court Allows FTC Case Against Kochava to Proceed

In February 2025, a U.S. District Court rejected Kochava’s motion to dismiss the lawsuit, allowing the FTC’s case to move forward.The court concluded that Kochava’s practices could plausibly be deemed unfair under Section 5 of the FTC Act, increasing the legal risk surrounding the company's operations.

➔ Source: Judge Denies Kochava’s Motion to Dismiss

For companies considering data providers, unresolved regulatory litigation is a critical red flag.

3. Inadequate Consent and Questionable Anonymization Practices

The FTC alleges that Kochava collected and sold large volumes of consumer location and browsing data without proper consent mechanisms in place.While Kochava claimed data was anonymized, critics and regulators argue that location data is extremely difficult to truly de-identify, making it possible to re-identify individuals based on movement patterns.

➔ Source: FTC Complaint Details Against Kochava

This creates significant privacy, security, and compliance risks for any business using Kochava-sourced data.

4. Real-World Harm Potential from Location Tracking

The FTC stresses that the misuse of location data can lead to serious real-world harms, including:

• Outing individuals seeking reproductive healthcare

• Revealing victims of domestic violence seeking shelter

• Exposing religious or political affiliations

• Enabling physical stalking or targeted violence

Given the risks, sourcing data from Kochava could expose organizations to litigation, regulatory scrutiny, and massive reputational damage.

➔ Source: FTC Press Release on Kochava Case

Conclusion: Why Kochava Is a High-Risk Data Broker | Data Allegiance

Data Allegiance recommends that companies avoid sourcing data from Kochava until substantial privacy reforms and regulatory resolutions are achieved.With ongoing FTC litigation, evidence of non-consensual data sales, and the high potential for reputational harm, Kochava presents a significant risk for any brand concerned with data ethics, compliance, and consumer trust.