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On March 15, 2019, the State Administration for Market Regulation and the Cyberspace Administration of China (“CAC”) jointly issued the Announcement on the Implementation of App Security Certification (the “Announcement”), creating a voluntary (but state-sanctioned) security certification scheme for mobile applications (“Security Certification Scheme”).

Operators of mobile applications are encouraged to obtain this certification to demonstrate their compliance with China’s national standard, GB/T 35273 Information Security Technology — Personal Information Security Specification (“the Standard”), in terms of their collection and use of personal data (our previous blogpost about the Standard can be found here).  Search engines and mobile application stores are encouraged to recommend certified applications to users.

The Implementation Rules on Security Certification of Mobile Internet Application (“Implementing Rules”), which set out detailed procedural requirements for the Security Certification Scheme, were also released at the same time as an annex to the Announcement.

Although not mandatory, as the state-sanctioned certification scheme for personal information protection, the creation of this program illustrates the Chinese regulators’ willingness to use soft tools to encourage best practices in the marketplace.
Continue Reading China Introduces Mobile Application Security Certification Scheme

By Kristof Van Quathem and Anna Sophia Oberschelp de Meneses 

Exactly one month after the GDPR started applying, the French Supervisory Authority (“CNIL”) issued a formal warning to two companies in relation to their processing of localization data for targeted advertising (see here).  The CNIL found that the consent on which both companies relied did not comply with the General Data Protection Regulation (“GDPR”).  The CNIL also concluded that one of the companies was keeping geolocation data for longer than necessary.

Fidzup and Teemo offer a tool (“SDK-tool”) that allows their customers, mobile app operators, to collect geolocation data and to use this data to provide customized advertising to their app users.  The two companies create profiles on the app users based on the users’ visits to certain points of interests identified by the customers, such as the physical stores of the customer (or of competitors).  They then provide advertising in the form of pop-ups to the app users.  Once a user downloaded a customer’s app, geolocation data is collected, irrespective of whether the app is running, and combined with other data collected about the app user, such as, an advertising ID and technical information about the device (e.g., MAC address).  Both companies relied on user consent obtained by the app operator to process the personal data they collected.  The agreements with Fidzup and Teemo required their customers to inform app users about the targeted advertising activities enabled by the SDK-tool and to obtain the app users’ consent.

The CNIL concluded that the consent obtained did not meet the requirements of the GDPR.  Under the GDPR consent must be “freely given, specific, informed and unambiguous”.  According to CNIL, the consent obtained did not meet any of these requirements.
Continue Reading French Supervisory Authority Issues 2 GDPR Warnings

The Article 29 Working Party (WP29) has published long-awaited draft guidance on transparency and consent under the General Data Protection Regulation (“GDPR”).  We are continuing to analyze the lengthy guidance documents, but wanted to highlight some immediate reactions and aspects of the guidance that we think will be of interest to clients and other readers of InsidePrivacy.  The draft guidance is open for consultation until 23 January 2018.
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Continue Reading EU Regulators Provide Guidance on Notice and Consent under GDPR

A new post on the Covington eHealth blog discusses the new web-based interactive tool released by the FTC, in conjunction with HHS and the FDA, to assist mobile health app developers in navigating applicable federal laws and regulations in the areas of advertising and marketing, medical devices, and data security and privacy.  As part of…

Yesterday, the Federal Trade Commission (“FTC”) announced that it issued warning letters to mobile app developers that installed software created by an entity called Silverpush that could allow third parties to monitor the television-viewing habits of consumers who have downloaded the mobile apps of those developers.  The letters were sent to 12 developers whose apps are available for download in the Google Play store and appear to include the Silverpush software.
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Continue Reading FTC Issues Warning Letters to App Developers Using Technology That Could Monitor What Users Watch on TV

On March 2, 2016, the Consumer Financial Protection Bureau (CFPB) entered into a consent order with online payment systems operator Dwolla, Inc., based on allegations that Dwolla deceived consumers about its data security practices and the safety of its online payment system. The CFPB brought this action under its authority in Sections 1031(a) and 1036(a)(1)…

A new post on Covington’s Inside Medical Devices blog discusses a new portal recently launched by HHS seeking questions from mobile health application developers.  The platform allows for individuals to both submit and review questions on the HIPAA implications of these mobile health applications.  To read the post, click here.

By Lindsey Tonsager and Megan Rodgers

The FTC held its “Start with Security” conference in San Francisco, California, last week, launching an initiative to provide companies with practical resources for implementing effective data security strategies.

The event was targeted at tech start-ups and small- and medium-sized businesses, but the panelists included representatives from companies with mature and well-resourced data security programs.

The panelists agreed that achieving greater data security is cheaper and easier to accomplish when it is considered early in the secure app development lifecycle. At the same time, panelists also acknowledged that companies face a myriad of potential security risks that must be balanced and prioritized, and that it may be more difficult for larger companies with complicated systems to adapt their practices to address evolving security risks.

Below are some practical tips the panelists provided for building a culture of “security by design”:…
Continue Reading Start With Security: Key Takeaways from the FTC’s Data Security Conference

In one of the first decisions evaluating Telephone Consumer Protection Act (TCPA) claims under the FCC’s recent omnibus TCPA order, the Northern District of California dismissed a putative class action lawsuit alleging that AOL violated the TCPA when users of its Instant Messenger service (AIM) sent text messages to incorrect recipients.  After the court dismissed…