Resolving the FTC’s first complaint against a mobile app developer under the Children’s Online Privacy Protection Act (“COPPA”), W3 Innovations, LLC, a developer of children’s games for the iPhone and iPod touch, has agreed to pay $50,000 to settle allegations that it collected and disclosed the personal information of thousands of children under the age of 13 without first providing parents notice of their children’s privacy practices or obtaining parental consent.

The FTC alleged that several of the mobile apps operated by W3 Innovations, including the Emily’s Girl World app, Emily’s Dress Up app, Emily’s Dress Up & Shop app, and Emily’s Runway High Fashion app, are directed to children under the age of 13.  In addition to collecting and maintaining children’s email addresses, the FTC claimed that the defendants also allowed children to publicly post personal information, including their full names, on message boards in violation of COPPA.

The settlement provides industry guidance on a few of the issues that the FTC raised as part of its 2010 COPPA Rule review and is a reminder that the FTC may decide to resolve some of these issues through enforcement actions rather than through the rulemaking process.  For example, the FTC’s 2010 Notice of Inquiry on COPPA asked for comment on how the definition of “Internet” applies to mobile communications.  The FTC’s complaint clarifies that the FTC believes COPPA is broad enough to cover mobile applications.  The complaint also clearly defined the term “online service” for the first time, stating that W3 Innovations’ mobile apps are “online services” covered by the COPPA rule because they “send and receive information via the Internet.” 

As we blogged about here, the FTC has told industry to expect more enforcement actions against mobile app developers under Section 5 of the FTC Act.  This settlement suggests that the FTC also plans to use its enforcement authority under COPPA to help ensure that mobile app developers fulfill their obligations to protect children’s privacy.  

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Photo of Lindsey Tonsager Lindsey Tonsager

Lindsey Tonsager helps national and multinational clients in a broad range of industries anticipate and effectively evaluate legal and reputational risks under federal and state data privacy and communications laws.

In addition to assisting clients engage strategically with the Federal Trade Commission, the…

Lindsey Tonsager helps national and multinational clients in a broad range of industries anticipate and effectively evaluate legal and reputational risks under federal and state data privacy and communications laws.

In addition to assisting clients engage strategically with the Federal Trade Commission, the U.S. Congress, and other federal and state regulators on a proactive basis, she has experience helping clients respond to informal investigations and enforcement actions, including by self-regulatory bodies such as the Digital Advertising Alliance and Children’s Advertising Review Unit.

Ms. Tonsager’s practice focuses on helping clients launch new products and services that implicate the laws governing the use of endorsements and testimonials in advertising and social media, the collection of personal information from children and students online, behavioral advertising, e-mail marketing, artificial intelligence the processing of “big data” in the Internet of Things, spectrum policy, online accessibility, compulsory copyright licensing, telecommunications and new technologies.

Ms. Tonsager also conducts privacy and data security diligence in complex corporate transactions and negotiates agreements with third-party service providers to ensure that robust protections are in place to avoid unauthorized access, use, or disclosure of customer data and other types of confidential information. She regularly assists clients in developing clear privacy disclosures and policies―including website and mobile app disclosures, terms of use, and internal social media and privacy-by-design programs.