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Silicon Valley Apps for Kids Meetup

Laura D. Berger October 22, 2012

The views expressed herein are those of the speaker, and do not represent the views of the Commission or any individual

Commissioner.

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FTC Jurisdiction FTC Act (Section 5) prohibits unfair or

deceptive acts and practices in or affecting commerce

FTC also enforces 45 other statutes and more than 30 trade regulation rules

Privacy-related standards the FTC enforces include Children’s Online Privacy Protection Act (“COPPA”), as well as other laws, such as the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act.

Deception a material representation or omission that is likely to mislead consumers acting reasonably under the circumstances

Unfairness practices that cause or are likely to cause substantial injury to consumers that are not outweighed by countervailing benefits to consumers or competition and are not reasonably avoidable by consumers. Note: Section 5 and COPPA violations often are alleged in

tandem – e.g., if you say you don’t collect information from kids under 13, but you do.

FTC Act (Section 5)

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FTC Advice for App Developers

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Tell the truth about what your app can do.   

Disclose key information clearly and conspicuously. 

Build privacy considerations in from the start. 

Be transparent about your data practices.  Offer easy to find and easy to use choices.  Honor your privacy promises.  Protect kids’ privacy.    Collect sensitive information only with

consent.  Keep user data secure. 

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Children’s Online Privacy Protection Act (COPPA)

COPPA is the only child-specific federal privacy law in the United States.

Among other things, operators of commercial websites and online services must provide NOTICE and obtain parents’ CONSENT before collecting personal information from children under age 13.

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COPPA’s Goals Permit parents to make informed choices

about when and how children’s personal information is collected, used, and disclosed online; and

Enable parents to monitor their children’s interactions and help protect them from the risks of inappropriate online disclosures.

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Who must comply? Operators of commercial websites and

online services directed to children that collect, maintain, or provide the opportunity to disclose personally identifying information or “PII.”

Operators of general audience sites and services (including teen/tween sites) who have actual knowledge that they collect kids’ PII.

Entities on whose behalf operators collect the information.

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“Directed to Children”FTC considers several factors, including:

Subject matter, content, age of models, language, graphics, activities, or incentives;

Whether advertising promoting or appearing on the site or service is directed to children;

Evidence about intended audience; Empirical evidence about audience composition.

2011 Proposed Additions: Music & celebrities appealing to children.

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“Directed to Children”: Mobile Apps

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“Directed to Children”: Social Networks

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General Audience Must have actual knowledge that they

collect personal information from children.

“Actual knowledge” can come from asking a child’s age, grade, birthday, other age-identifiers. May also come from notification from a concerned parent or other individual.

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What must Operators do under COPPA?

Post a privacy policy and links to the policy wherever personal information is collected.

Give parents direct notice of its information practices.

With certain exceptions, obtain verifiable parental consent before collecting information.

And . . .

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…Operators also must: Provide parents access and opportunity to

delete child’s personal information and opt-out of future collection.

Limit collection of personal information. Establish and maintain reasonable procedures to

protect the confidentiality, security, and integrity of personal information.

2011 Proposal: Strengthen security provision; add data retention/deletion requirements

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Self-Regulatory Safe Harbor Programs under COPPA

There are 5 approved safe harbors: Aristotle, Inc. www.aristotle.com/integrity CARU www.caru.org ESRB www.esrb.org Privo, Inc. www.privo.com TRUSTe www.truste.com

An operator participating in and complying with an FTC-approved safe harbor will be deemed to be in compliance with the Rule.

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COPPA Enforcement

FTC actively enforces COPPA.

Agency has filed 20 federal court actions, and has obtained over $7.6 million in civil penalties.

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Federal Court Orders

FTC is authorized to seek up to $16,000/violation in penalties, and may also seek:

Deletion of personal information collected without parental consent;

Employee education and written acknowledgement;

Written compliance report to FTC; and Consumer education.

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What is “personal information” (cont’d)?

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What is “personal information”?

Full name Physical address E-mail address Social Security Number Telephone number A screen name revealing

e-mail A persistent identifier

combined with personal information or “PI”

Any information tied to PI

2011 Proposal:• Persistent Identifiers not

used for “support for internal operations”

• Geolocation • Screen-names not used

for “support for internal operations”

• Photos, Videos

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Verifiable Parental Consent:2011 Proposed Modifications

Add new methods: electronic scans, video-conferencing, or use of government issued ID that is immediately deleted.

Eliminate Email Plus 2 new approval procedures:

Commission approval Safe Harbor approval

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FTC Resources for businesses

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Exploring the Marketplace

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Kids Apps Survey Reviewed 200 kids apps on Android and 200 on

Apple

Looked for disclosures available in App stores or by developers

Very little information disclosed prior to download

Recommendation – app stores, developers and other ecosystem participants need to improve disclosures re data practices