App Developers Fined for Breaching Child Data Rules

In the US, two app developers have been ordered to pay a combined $360k in civil penalties as part of settlements with the Federal Trade Commission (FTC) over charges they had violated the Children's Open Privacy Protection Act (COPPA) Rule.

COPPA was established in 2008 to detail what a web site operator must include in a privacy policy, when and how to seek consent from a parent or guardian, and what responsibilities an operator has to protect children's privacy and safety online. It also bars companies from selling 'personally identifiable' data from children under the age of thirteen, without their parents' permission. In 2012, the FTC commissioned a study, which at the time, found that kids' apps siphon an 'alarming' amount of data from mobile devices without disclosing this to parents.

App developers Retro Dreamer and LAI Systems have now been fined for allegedly allowing advertising networks to collect data from children, so that they could serve them targeted ads. These cases are the first in which the FTC alleged that companies permitted advertisers to use persistent identifiers - pieces of data tied to a particular user or device - to serve ads to children. Persistent identifiers were among the categories added to the COPPA Rule's definition of personal information, when it was updated in 2013.

Jessica Rich, Director of the FTC's Bureau of Consumer Protection, commented: 'It's vital that companies understand the rules of the road when it comes to handling children's personal information online. These cases make it clear that we're closely watching this space to ensure children's privacy online is being protected.'

Web site: www.ftc.gov .