FTC's Second Kids' Report Reveals Survey Results for Mobile Applications | Practical Law

FTC's Second Kids' Report Reveals Survey Results for Mobile Applications | Practical Law

On December 10, 2012, the Federal Trade Commission (FTC) released a report, Mobile Apps for Kids: Disclosures Still Not Making the Grade, detailing the results of the FTC's second survey of kids' mobile apps. The report finds that little progress has been made toward informing parents of what they need to know to determine what data mobile apps collect from their kids, how the data is shared or who will have access to it.

FTC's Second Kids' Report Reveals Survey Results for Mobile Applications

Practical Law Legal Update 4-523-0485 (Approx. 3 pages)

FTC's Second Kids' Report Reveals Survey Results for Mobile Applications

by PLC Intellectual Property & Technology
Published on 10 Dec 2012 • USA (National/Federal)
On December 10, 2012, the Federal Trade Commission (FTC) released a report, Mobile Apps for Kids: Disclosures Still Not Making the Grade, detailing the results of the FTC's second survey of kids' mobile apps. The report finds that little progress has been made toward informing parents of what they need to know to determine what data mobile apps collect from their kids, how the data is shared or who will have access to it.
The FTC issued a press release on December 10, 2012 announcing the publication of a report detailing the results of the FTC's second survey of kids' mobile apps. The report found that app stores, developers and third parties that interact with the apps have made little progress toward informing parents about data collected and shared with kids' mobile apps since the FTC's first survey of kids' mobile apps in 2011 and its related report issued in February 2012 (see Legal Update, FTC Report Calls for More Privacy Protection in Mobile Apps for Kids).
The report, Mobile Apps for Kids: Disclosures Still Not Making the Grade, surveyed apps for children and looked at disclosures and links on each app's promotion page in the app store, on the app developer's website and within the app.
The report found that:
  • Most apps failed to provide any information about the data collected through the app, the type of data collected, the purpose of the collection and who would have access to the data.
  • Nearly 60% of the surveyed apps shared certain information with third parties, such as app developers or advertising networks, without disclosing this sharing to parents.
  • Some apps contained interactive features, such as advertising, links to social media or the ability to make in-app purchases, without disclosing this to parents before download.
The report strongly urges all entities in the mobile app industry, including app stores, developers and third-party service providers, to accelerate efforts to ensure that parents have key information before downloading apps for their children. The report also urges the industry to implement the FTC's Privacy Report recommendations, including:
  • Incorporating privacy protections into the design of mobile products and services.
  • Offering parents easy-to-understand choices about data collection and sharing through kids' apps.
  • Providing greater transparency about how data is collected, used and shared through kids' apps.
For more on the FTC Privacy Report, see Legal Update, FTC Releases Final Consumer Privacy Report.
The FTC stated that it is also launching non-public investigations of certain company's practices, including their compliance with the Children's Online Privacy Protection Act.