iOS Developer Pays $50k FTC Fine

August 15, 2011 -

The iOS app maker responsible for games such as Zombie Duck Hunt, Truth or Dare, and Emily's Dress Up today settled with the Federal Trade Commission for collecting children's personal data in its iPhone and iPod touch apps. Broken Thumbs Apps and its parent company W3 Innovations were targeted by an FTC lawsuit on Friday. Today the company announced a settlement.

The FTC alleged in its complaint that W3 "collected, maintained, and/or disclosed personal information" entered into its kid apps such as emails and other private information. This included a list of more than 30,000 e-mails as well as personal information from more than 300 Emily's Girl World App users and 290 Emily's Dress Up users. Some of W3's apps asked children to enter names before beginning the game or leave comments on a blog related to the app, details of which are saved to W3's archives.

The FTC further alleges that these apps were clearly marketed to children and that the company has seen more than 50,000 app downloads since it first began offering games on the iPhone and iPod touch. Because these apps send and receive information via the Internet, the FTC said that they were in violation of the Children’s Online Privacy Protection Act (COPPA) and the FTC's COPPA Rule, which requires parents to give consent before the company collects or uses the personal information of children. With W3/Broken Thumbs, parents were not aware that their kids' details were being collected and used for marketing purposes.

The company quickly acquiesced to the complaint and has paid a $50,000 fine. It also agreed to delete all personal information that was collected in violation of the COPPA Rules and claims that it won't make any future Rule violations.

US Representative Ed Markey (D-MA) applauded the FTC's decision to pursue W3:

"Since COPPA was signed into law in 1998, children increasingly connect to the Internet on the go, using an array of mobile apps and new services that did not exist when the law was enacted," Markey said in a statement. "Earlier this year, I introduced the ‘Do Not Track Kids Act’ with Congressman Joe Barton to bring COPPA up to date and add additional safeguards for teens. I look forward to working with my colleagues to move forward our bipartisan bill so that we can provide strong protections for children and teens, enabling them to learn, communicate and enjoy entertainment in a safe online environment."

Senator Amy Klobuchar (D-MN), agreed with Markey:

"This settlement is an important victory for online and mobile privacy. Mobile apps can be great tools for kids to learn and have fun, but parents should never have to worry that their child’s personal information is being collected or violated. I will continue to make sure we have clear rules of the road that allow consumers to have more control over their online and mobile information," she said in a statement.

Source: Ars Technica

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Andrew EisenHence the "Uh, yeah. Obviously."09/02/2014 - 12:53am
SleakerI think Nintendo has proven over the last 2 years that it doesn't.09/02/2014 - 12:31am
Andrew EisenSleaker - Uh, yeah. Obviously.09/01/2014 - 8:20pm
Sleaker@AE - exclusives do not a console business make.09/01/2014 - 8:03pm
Papa MidnightI find it disappointing that, despite the presence of a snopes article and multiple articles countering it, people are still spreading a fake news story about a "SWATter" being sentenced to X (because the number seems to keep changing) years in prison.09/01/2014 - 5:08pm
Papa MidnightAnd resulting in PC gaming continuing to be held back by developer habits09/01/2014 - 5:07pm
Papa MidnightI find it disappointing that the current gen of consoles is representative of 2009-2010 in PC gaming, and will be the bar by which games are released over the next 8 years - resulting in more years of poor PC ports (if they're ever ported)09/01/2014 - 5:06pm
Andrew EisenMeanwhile, 6 of Wii U's top 12 are exclusive: Mario 3D World, Nintendo Land, Pikmin 3, Mario Kart 8, Wonderful 101, and ZombiU. (Wind Waker HD is on the list too but I didn't count it.)09/01/2014 - 4:36pm
Andrew EisenLikewise, only two of Xbox One's top 12 are exclusive: Dead Rising 3 and Ryse: Son of Rome (if you ignore a PC release later this year).09/01/2014 - 4:34pm
Andrew EisenNot to disrespect the current gen of consoles but I find it telling that of the "12 Best Games For The PS4" (per Kotaku), only two are exclusive to the system: Infamous: Second Son and Resogun.09/01/2014 - 4:30pm
MaskedPixelantehttp://www.joystiq.com/2014/09/01/beyond-two-souls-ps4-trophies-emerge-directors-cut-reported/ MMM MMM, nothing quire like reheated last gen games to make you appreciate the 400 bucks you spent on a new console.09/01/2014 - 4:24pm
Andrew EisenThat's actually a super depressing thought, that a bunch of retweeters are taking that pic as an illustration of the actual issue instead of an example of a complete misunderstanding of it.09/01/2014 - 4:20pm
Andrew EisenObviously, the picture was created by someone who doesn't understand what the issue actually is (or, possibly, someone trying to satire said misunderstanding).09/01/2014 - 4:10pm
Papa MidnightPeople fear and attack what they do not understand.09/01/2014 - 4:04pm
Papa MidnightWell, let's not forget. Someone held their hand in a peace sign a few weeks ago and people started claiming it was a gang sign. Or a police chief displayed the hand signal of their fraternity and was accused of the same.09/01/2014 - 4:04pm
SleakerEither people don't understand that what the picture is saying is true, or the picture was created out of a misunderstanding of what sexism is.09/01/2014 - 3:52pm
Sleaker@AE ok yah that's where the kind of confusion I'm getting. Your tweet can be taken to mean two different things.09/01/2014 - 3:51pm
Andrew EisenSleaker - No. No, not even remotely. The pic attached to my tweet was not made by me; it's not a statement I'm making. It's an illustration of the complete misunderstanding of the issue my tweet is referring to.09/01/2014 - 3:13pm
Papa MidnightIn other news, Netflix states why it paid Comcast: http://money.cnn.com/2014/08/29/technology/netflix-comcast/index.html?hpt=hp_t209/01/2014 - 3:10pm
Papa MidnightAndrew Eisen: Sites like Tumblr make things seem much bigger than they are. A vocal extreme minority start complaining and things go as they do.09/01/2014 - 3:09pm
 

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