How far is data broker penetration – What does the FTC case against ad tech giant Kochava reveal?
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Kochava, a self-proclaimed industry giant in mobile app data analytics, is locked in a legal battle with the Federal Trade Commission in a case that could lead to major changes in the global data market and Congress’ approach to artificial intelligence and data privacy. The stakes are high because Kochava’s covert data acquisition and AI-assisted analytics practices are common in the global location data market. In addition to several lesser-known data brokers, the mobile data market includes big players like Foursquare and data market exchanges like Amazon’s AWS Data Exchange. The FTC’s recently amended complaint against Kochava makes clear that there is truth in what Kochava advertises: it can provide data on any channel, on any device, to any person, and the buyer does everything with Kochava. Can measure something.
Separately, the FTC is touting its recent settlement with data broker Outlogic as what it calls the first-ever restriction on the use and sale of sensitive location data. Outlogic must destroy location data it holds and is prohibited from collecting or using such information to determine who comes and goes to sensitive locations such as health care centers, homeless and domestic abuse shelters and places of worship Is. According to the FTC and proposed class-action lawsuits against Kochava on behalf of adults and children, the company secretly collects data without consumer notice or consent, including vast amounts of consumer location and personal data.
It then analyzes that data using AI, which allows it to predict and influence consumer behavior in impressively diverse and alarming ways, and offers it for sale. Kochava has denied the FTC’s allegations. The FTC says Kochava sells a 360-degree perspective on individuals and advertises that it can combine precise geolocation data with emails, demographics, devices, homes and channels. In other words, Kochava takes location data, combines it with other data and ties it to consumer identity. The data it sells reveals precise information about an individual, such as visits to hospitals, reproductive health clinics, places of worship, homeless and domestic violence shelters, and addiction treatment facilities.
Furthermore, by selling such detailed data about people, the FTC says, Kochava is enabling others to identify individuals and subject them to threats of defamation, stalking, discrimination, job loss, and even That is putting him in danger of physical violence. I am a lawyer and law professor who practices, teaches, and researches about AI, data privacy, and evidence. These complaints highlight to me that US law has not kept pace with the regulation of commercially available data or the governance of AI. Most data privacy regulations in the US were conceived in the pre-generative AI era, and there is no comprehensive federal law that addresses AI-powered data processing.
There are efforts by Congress to regulate the use of AI in decision making such as hiring and sentencing. Efforts are also being made to provide public transparency regarding the use of AI. But Congress has yet to pass the law. What the lawsuit documents reveal According to the FTC, Kochava secretly collects and then sells its Kochava Collective data, which includes precise geolocation data, comprehensive profiles of individual consumers, consumers’ mobile app usage details, and Kochava’s consumer segments . The FTC says Kochava’s consumer class behavior and sensitive information such as gender identity, political and religious affiliation, race, visits to hospitals and abortion clinics, and people’s medical information, such as menstruation and ovulation, and even That may be based on cancer treatment.
By selecting certain segments, Kochava can identify and target extremely specific consumer groups. For example, this could include people who identify as gender other or all pregnant women who are African American and Muslim. The FTC says the selected classes may be limited to a specific geographic area or, possibly, even to a specific building. Based on identification, the FTC states that Kochava customers are able to obtain name, home address, email address, economic status and stability, and much more data about selected groups of people. This data is purchased by organizations such as advertisers, insurers, and political campaigns who want to narrowly classify and target people.
FTC also says that it can also be bought by people who want to harm others. How does Kochava acquire so much sensitive data The FTC says Kochava acquires consumer data in two ways: through Kochava’s software development kit that it provides to app developers, and directly from other data brokers. The FTC says software development kits provided by Kochava are installed in more than 10,000 apps globally. Kochava’s kit, embedded with Kochava’s coding, collects data and sends it back to Kochava without the consumer informing or consenting to the data collection. Another lawsuit against Kochava in California makes similar allegations of secret data collection and analysis, and that Kochava sells customized data feeds based on extremely sensitive and private information to suit its customers’ needs.
AI intrudes on your privacy The FTC’s complaint also outlines how advanced AI tools are enabling a new phase in data analysis. Generative AI’s ability to process large amounts of data can be used and learned from mobile data in privacy-invading ways. This includes guessing and disclosing sensitive or otherwise legally protected information such as medical records and images. AI offers the ability to learn and predict anything about individuals and groups, even very sensitive behavior. It also makes it possible to manipulate individual and group behavior, leading to decisions favoring specific users of the AI tool.
This type of AI coordinated manipulation can overwhelm your decision-making ability without your knowledge. Privacy in the Balance The FTC enforces laws against unfair and deceptive business practices, and it notified Kochava in 2022 about the company’s violations of the rules. Both sides have had some wins and losses in the ongoing case. Senior US District Judge B. Lynn Winmill dismissed the FTC’s first complaint and demanded more facts from the FTC. The Commission filed an amended complaint that provided more specific allegations.
Winmill has not yet ruled on another Kochava motion to dismiss the FTC’s case, but according to a Jan. 3, 2024 filing in the case, the parties are moving forward with discovery. A trial date is expected in 2025, but the date has not yet been set. Currently, companies, privacy advocates and policy makers are keeping an eye on this issue. The result, combined with the proposed legislation and the FTC’s focus on generic AI, data and privacy, will change the way companies obtain data, the ways they use AI tools to analyze data, and the ways in which machine- and human-based data analysis is conducted. This could lead to major changes in what data can be legally used in the US.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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