Consent Order

On October 22, 2019, the Federal Trade Commission reached a proposed settlement with the developer of three so-called “stalking” apps that enabled purchasers of the app to secretly monitor the mobile devices on which they were installed.  Developer Retina-X Studios, LLC and its owner James N. Johns marketed the three apps—MobileSpy, PhoneSheriff, and TeenShield—as a means to monitor children and employees by sharing detailed information about these individuals’ smart phone activities, including their text messages and GPS locations.  The FTC complaint alleges that the developer failed to ensure that the apps would be used for legitimate and lawful purposes, did not secure personal information collected from children and other users, and misrepresented the extent to which that information would be kept confidential.

While the FTC settlement represents its first case against developers of tracking apps, the complaint’s allegations rely on provisions of the FTC Act that are broadly applicable to companies that collect, store, and/or monitor users’ personal information, as well as the Children’s Online Privacy Protection Act (“COPPA”): 
Continue Reading FTC Reaches Settlement with Developer of Tracking Apps

On May 8, 2019, the Federal Trade Commission (FTC) announced its first three cases that exclusively enforce the Consumer Review Fairness Act (CRFA).  Enacted in December 2016 to protect consumers’ ability to share their honest reviews, the CRFA prohibits companies from using form contracts that bar consumers from writing negative…
Continue Reading The FTC Announces Consumer Review Fairness Act Enforcement Actions

Aura Labs, Inc. (Aura) has settled the FTC’s charges that it deceived consumers in relation to its mobile blood pressure app.  The FTC’s complaint alleged that Aura deceptively claimed the app was as accurate as traditional blood pressure cuffs, and also that Aura’s owner posted a 5-star review of the app without disclosing his connection to the company.

The stipulated settlement order, which was signed by the district court on December 9, bars Aura from making similar representations about the accuracy of its blood pressure measurements absent “competent and reliable scientific evidence.”  It also requires Aura to disclose any material connections between the company and people who endorse its products.  And it imposes reporting and compliance audit requirements on Aura for ten years.
Continue Reading Blood-Pressure App Settles FTC Deception Charges

Yesterday, the FTC announced a settlement with Goldenshores Technologies, a company that makes the most-downloaded flashlight app on the Android platform.  The FTC alleged that Goldenshores violated Section 5 of the FTC Act by failing to disclose to consumers that it shared location data it collected from users’ device with…

Continue Reading FTC Settles Charges Against Flashlight App Maker

Yesterday, the FTC announced that it had approved a final order settling charges that HTC America failed to take reasonable steps to secure the software it developed for mobile devices.  (We’ve previously blogged about the case here.)  The FTC alleged that this failure amounted to an “unfair” practice in…

Continue Reading HTC America’s Settlement with FTC Becomes Final

Yesterday, the Federal Trade Commission (“FTC”) approved an agreement with MySpace to settle charges that the company misrepresented the extent to which it shared personal information with third-party advertisers.  MySpace’s privacy policy suggested that it would not share personally identifiable information (“PII”) with third parties without the user’s permission, but…

Continue Reading FTC Approves MySpace Settlement

Today the Federal Trade Commission has announced its approval of a consent decree to settle charges that Google misrepresented to users of Apple’s Safari browser that it would not place tracking “cookies” or serve targeted ads to those users, violating an earlier privacy settlement between the company and the FTC.  The decree…

Continue Reading FTC Approves $22.5 Million Consent Decree to Settle Charges that Google Bypassed Safari Users’ Privacy Settings

Yesterday, the FTC announced that MySpace has agreed to settle charges that it engaged in deceptive practices by disclosing personal information to third parties despite statements in its privacy policy suggesting it would not engage in such sharing.  The proposed settlement with MySpace reflects the FTC’s continuing concern with the…

Continue Reading MySpace Settles FTC Charges