diff --git a/sharing/common/nearby_share_prefs.cc b/sharing/common/nearby_share_prefs.cc
index 873d2d1a..3366b843 100644
--- a/sharing/common/nearby_share_prefs.cc
+++ b/sharing/common/nearby_share_prefs.cc
@@ -118,6 +118,7 @@ void RegisterNearbySharingPrefs(PreferenceManager& preference_manager,
         kNearbySharingBackgroundFallbackVisibilityName,
         static_cast<int>(kDefaultFallbackVisibility));
     preference_manager.SetBoolean(kNearbySharingIsReceivingName, true);
+    preference_manager.SetBoolean(kNearbySharingIsAnalyticsEnabledName, false);
   }
 
   preference_manager.SetInteger(
@@ -165,7 +166,6 @@ void RegisterNearbySharingPrefs(PreferenceManager& preference_manager,
       kNearbySharingSchedulerUploadLocalDeviceCertificatesName);
   preference_manager.Remove(kNearbySharingUsersName);
 
-  preference_manager.SetBoolean(kNearbySharingIsAnalyticsEnabledName, false);
   preference_manager.SetBoolean(kNearbySharingIsAllContactsEnabledName, true);
 }
 
diff --git a/sharing/nearby_sharing_service_impl_test.cc b/sharing/nearby_sharing_service_impl_test.cc
index b2d93e94..0dc50661 100644
--- a/sharing/nearby_sharing_service_impl_test.cc
+++ b/sharing/nearby_sharing_service_impl_test.cc
@@ -4700,7 +4700,8 @@ TEST_F(NearbySharingServiceImplTest, LoginAndLogoutShouldResetSettings) {
   });
   EXPECT_TRUE(logout_notification.WaitForNotificationWithTimeout(kWaitTimeout));
   absl::SleepFor(absl::Milliseconds(100));
-  EXPECT_FALSE(service_->GetSettings()->GetIsAnalyticsEnabled());
+  // data collection flag is not reset on logout.
+  EXPECT_TRUE(service_->GetSettings()->GetIsAnalyticsEnabled());
   EXPECT_FALSE(service_->GetAccountManager()->GetCurrentAccount().has_value());
   EXPECT_TRUE(sharing_service_task_runner_->SyncWithTimeout(kTaskWaitTimeout));
 }