• Only 20% of the apps reviewed disclosed any information about the apps’ privacy practices;
• Almost 60% of the apps transmitted ID number from the user’s device back to the developers, or more commonly, an advertising network, an analytics company or another party (and 14 of those apps also transmitted geolocation and/or phone number);
• A small number of third parties receive information from many apps, which means that they can potentially develop children’s profiles based on their behavior in different apps;
• 58% of apps contained interactive features, such as links to social media or advertising, without first disclosing it to the parents (58% of the apps contained advertising within the app, but only 15% disclosed it to the parents prior to the download; 22% of the apps contained links to social media, but only 9% disclosed this fact prior to the download; 17% of the apps provided ability for kids to purchase virtual goods for $0.99 to $29.99).

COPPA’s purpose is to safeguard personally identifiable information of children under the age of 13. According to the Act, if apps developers collect, use and/or disclose personal information of children under the age of 13, they must (1) disclose a privacy policy; (2) provide notice to parents about their information collection practices and, with some exceptions, get verifiable parental consent before collecting personal information from children; (3) give parents the choice to consent to the collection and use of a child’s personal information; (4) not condition a child’s participation in the app on the disclosure of more personal information than is reasonably necessary for the activity; and (5) maintain the confidentiality, security and integrity of the personal information collected from children.

The survey makes it clear that the FTC should significantly step up its enforcement efforts against those apps developers that fail to comply with COPPA. In fact, the survey announced that the FTC is launching multiple investigations to determine whether certain apps developers have violated COPPA or engaged in unfair or deceptive trade practices in violation of the FTC Act. Further, the survey shows that COPPA and the current regulations related to COPPA need to be amended soon. The currently proposed amendments seek to expand the definition of personally identifiable information that may be collected from children only upon disclosure and parental consent. The proposed definition includes photos, voice recordings, unique mobile device serial numbers, as well as the geolocation of the mobile device, – information that was not considered as personally identifiable or not considered at all back in 1998, when COPPA was adopted.

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• 66% of developers think that it is “likely or very likely” that a mobile-first startup could break Facebook’s dominance in social media.
• Developers are disappointed with many features of HTML5.
• Developers believe that by 2015, they’ll be writing a lot of mobile apps for devices beyond the smartphone and tablet, such as TV, connected cards, game consoles, Google Glass and foldable screens.
• By far, developers prefer building apps for iOS smartphones and iPad.
• Only 9% of developers are still interested in building apps for Research in Motion (a steep decline from 40% in January 2011).

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The other principles include:

• Disclose Key Information Clearly and Conspicuously. –“If you need to disclose information to make what you say accurate, your disclosures have to be clear and conspicuous.”
• Build Privacy Considerations in From the Start. – Incorporate privacy protections into your practices, limit the information you collect, securely store what you hold on to, and safely dispose of what you no longer need.   “For any collection or sharing of information that’s not apparent, get users’ express agreement.  That way your customers aren’t unwittingly disclosing information they didn’t mean to share.”
• Offer Choices that are Easy to Find and Easy to Use. – “Make it easy for people to find the tools you offer, design them so they’re simple to use, and follow through by honoring the choices users have made.”
• Honor Your Privacy Promises. – “Chances are you make assurances to users about the security standards you apply or what you do with their personal information.  App developers – like all other marketers – have to live up to those promises.”
• Protect Kids’ Privacy. – “If your app is designed for children or if you know that you are collecting personal information from kids, you may have additional requirements under the Children’s Online Privacy Protection Act.”
• Collect Sensitive Information Only with Consent. – Even when you’re not dealing with kids’ information, it’s important to get users’ affirmative OK before you collect any sensitive data from them, like medical, financial, or precise geolocation information.
• Keep User Data Secure. – Statutes like the Graham-Leach-Bliley Act, the Fair Credit Reporting Act, and the Federal Trade Commission Act may require you to provide reasonable security for sensitive information.  The FTC has free resources to help you develop a security plan appropriate for your business.

The full copy of the Guidance is found here.

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