Privacy & Information Security Law Blog

On April 9, 2020, the Federal Trade Commission (“FTC”) issued guidance under the Children’s Online Privacy Protection Act (“COPPA”) for operators of educational technology (“EdTech”) used both in school settings and for virtual learning. The FTC’s guidance stresses that, while COPPA generally requires companies that collect personal information online from children under age 13 to provide notice of their data collection and use practices, and obtain verifiable parental consent, in the educational context and under certain conditions, schools can consent on behalf of parents to the collection of student personal information.

On January 21, 2020, the UK Information Commissioner’s Office (“ICO”) published the final version of its Age Appropriate Design Code (“the code”), which sets out the standards that online services need to meet in order to protect children’s privacy. It applies to providers of information services likely to be accessed by children in the UK, including applications, programs, websites, social media platforms, messaging services, games, community environments and connected toys and devices, where these offerings involve the processing of personal data.

On December 11, 2019, an updated version of India’s draft data privacy bill was introduced in the Indian Parliament (the “Draft Bill”) by the Ministry of Electronics and Information Technology (“MeitY”). The Draft Bill updates a prior version submitted to MeitY in July 2018.

On October 22, 2019, the Federal Trade Commission announced that, for the first time, it has brought a case against a developer of “Stalking” Apps. The agency alleges that Retina-X Studios, and its owner, James N. Johns, Jr., developed and marketed three apps that allowed purchasers to surreptitiously monitor the movements and online activities of users of devices on which the apps were installed without the knowledge or permission of the device’s user. The FTC also alleges that the app developer took steps to ensure that a device user would not be aware that the app had been installed, bypassing mobile device manufacturers’ security restrictions and leaving the device vulnerable to cybersecurity risks. The apps were marketed as tools for monitoring the behavior of employees and children. The FTC further alleges that the app developer issued policies that made inaccurate representations regarding the security of their online systems, which were recently found to have been hacked twice during earlier incidents.

On October 1, 2019, China’s Provisions on Cyber Protection of Children’s Personal Information (“Provisions”) became effective. The Cyberspace Administration of China had released the Provisions on August 23, 2019, and they are the first rules focusing on the protection of children’s personal information in China.

On September 24, 2019, Alastair Mactaggart, drafter of the 2018 California ballot initiative that served as the basis for the California Consumer Privacy Act of 2018 (“CCPA”), announced that he is filing a new initiative for California’s November 2020 ballot, the California Privacy Enforcement Act (“CPEA”).

On July 17, 2019, the Federal Trade Commission published a notice in the Federal Register announcing an accelerated review of its Children’s Online Privacy Protection Rule (“COPPA Rule” or “Rule”), seeking feedback on the effectiveness of the 2013 amendments to the Rule, and soliciting input on whether additional changes are needed. Citing questions regarding the Rule’s application to the educational technology sector, voice-enabled connected devices, and general audience platforms that host child-directed content, the FTC indicated that it was moving up its review from a standard 10-year timeframe. The Commission vote to conduct the Rule review was unanimous, 5-0.

On May 31, 2019, the Cyberspace Administration of China (the “CAC”) published Draft Regulations on Network Protection of Minor’s Personal Information (the “Draft Regulations”), timing the release to coincide with International Children’s Day. The Draft Regulations, based on the existing Cybersecurity Law of China (the “Cybersecurity Law”), is more protective of minors’ information than the Information Security Technology — Personal Information Security Specification (GB/T 35273 – 2017) (the “Specification”) and its draft amendment, which also address some limited provisions on network operators’ use and treatment of minors’ information.

On May 31, 2019, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP submitted comments to the UK Information Commissioner’s Office (the “ICO”) public consultation on its draft code of practice for age appropriate design for online services (the “Code”).

On May 6, 2019, the Federal Trade Commission announced that Meet24, FastMeet and Meet4U—three dating apps owned by Ukrainian-based company Wildec LLC—were removed from the Apple App Store and Google Play Store following an FTC letter alleging that the apps potentially violated the Children’s Online Privacy Protection Act (“COPPA”) and the Federal Trade Commission Act (“FTC Act”). According to the letter and contrary to what was claimed in their privacy policies, the apps, which collect dates of birth, email addresses, photographs and real-time location date, failed to block users who indicated they were under the age of 13.

On April 15, 2019, the UK Information Commissioner’s Office (the “ICO”) issued for public consultation a draft code of practice, “Age Appropriate Design,” that will regulate the provision of online services likely to be accessed by children in the UK. Given the extraterritorial reach of the UK Data Protection Act 2018, organizations based outside of the UK may be subject to the code, which is expected to take effect by the end of 2019. The deadline for responding to the public consultation is May 31, 2019.

On April 24, 2019, the Federal Trade Commission announced two data security cases involving online operators—one, an online rewards website, and the second, a dress-up games website—that were alleged to have failed to take reasonable steps to secure consumers’ data, which allowed hackers to breach both websites.

On April 9, 2019, the UK Information Commissioner’s Office (the “ICO”) levied one of its most significant fines under the Data Protection Act 1998 (the “DPA”) against pregnancy and parenting club Bounty (UK) Limited (“Bounty”), fining the company GBP 400,000. Bounty, which provides new and expectant mothers with information and offers for products and services, collects personal data online, via an app, and offline through hard copy cards. The company also offered a data broking service. Bounty came to the attention of the ICO as a “significant supplier” of personal data in the context of the ICO’s wider and ongoing investigation into the data broking industry.

On February 27, 2019, the Federal Trade Commission announced a record $5.7 million civil penalty against popular video creation and sharing app Musical.ly (now known as TikTok) for violations of U.S. children’s privacy rules. According to the FTC’s complaint, Musical.ly is designed to appeal to young children (among others), and the company was aware that a significant percentage of Musical.ly users were children under the age of 13. The FTC also alleged that Musical.ly gained actual knowledge of underage use from parents who unsuccessfully sought to have their children’s ...

The European Commission has issued an EU-wide recall of the Safe-KID-One children’s smartwatch marketed by ENOX Group over concerns that the device leaves data such as location history, phone and serial numbers vulnerable to hacking and alteration. The watch is equipped with GPS, a microphone and speaker, and has a companion app that grants parents oversight of the child wearer. According to a February 1, 2019 alert posted on the EU's recall and notification index for nonfood products, flaws in the product could permit malicious users to send commands to any Safe-KID-One watch ...

On December 4, 2018, the New York Attorney General (“NY AG”) announced that Oath Inc., which was known as AOL Inc. (“AOL”) until June 2017 and is a subsidiary of Verizon Communications Inc., agreed to pay New York a $4.95 million civil penalty following allegations that it had violated the Children’s Online Privacy Protection Act (“COPPA”) by collecting and disclosing children’s personal information in conducting online auctions for advertising placement. This is the largest-ever COPPA penalty.

On August 13, 2018, the Federal Trade Commission approved changes to the video game industry’s safe harbor guidelines under the Children’s Online Privacy Protection Act (“COPPA”) Rule. COPPA’s “safe harbor” provision enables industry groups to propose self-regulatory guidelines regarding COPPA compliance for FTC approval. 

On August 3, 2018, California-based Unixiz Inc. (“Unixiz”) agreed to shut down its “i-Dressup” website pursuant to a consent order with the New Jersey Attorney General, which the company entered into to settle charges that it violated the Children’s Online Privacy Protection Act (“COPPA”) and the New Jersey Consumer Fraud Act. The consent order also requires Unixiz to pay a civil penalty of $98,618.

Recently, Iowa and Nebraska enacted information security laws applicable to personal information. Iowa’s law applies to operators of online services directed at and used by students in kindergarten through grade 12, whereas Nebraska’s law applies to all commercial entities doing business in Nebraska who own or license Nebraska residents’ personal information.

On May 31, 2018, the Federal Trade Commission published on its Business Blog a post addressing the easily missed data deletion requirement under the Children’s Online Privacy Protection Act (“COPPA”).

On May 16, 2018, the Irish Data Protection Bill 2018 (the “Bill”) entered the final committee stage in Dáil Éireann (the lower house and principal chamber of the Irish legislature). The Bill was passed by the Seanad (the upper house of the legislature) at the end of March 2018. In the current stage, final statements on the Bill will be made before it is signed into law by the President.

On April 27, 2018, the Federal Trade Commission issued two warning letters to foreign marketers of geolocation tracking devices for violations of the U.S. Children’s Online Privacy Protection Act (“COPPA”). The first letter was directed to a Chinese company, Gator Group, Ltd., that sold the “Kids GPS Gator Watch” (marketed as a child’s first cellphone); the second was sent to a Swedish company, Tinitell, Inc., marketing a child-based app that works with a mobile phone worn like a watch. Both products collect a child’s precise geolocation data, and the Gator Watch includes geofencing “safe zones.”  

On March 6, 2018, the Centre for Information Policy Leadership (“CIPL”) at Hunton & Williams LLP issued a white paper on GDPR Implementation in Respect of Children’s Data and Consent (the “White Paper”). The White Paper sets forth guidance and recommendations concerning the application of GDPR requirements to the processing of children’s personal data. The White Paper also highlights and addresses several issues raised by the Article 29 Working Party (the “Working Party”) with regard to children in its guidelines on consent and issues raised by the UK Information Commissioner’s Office in its Consultation on Children and the GDPR.

On February 5, 2018, the Federal Trade Commission (“FTC”) announced its most recent Children’s Online Privacy Protection Act (“COPPA”) case against Explore Talent, an online service marketed to aspiring actors and models. According to the FTC’s complaint, Explore Talent provided a free platform for consumers to find information about upcoming auditions, casting calls and other opportunities. The company also offered a monthly fee-based “pro” service that promised to provide consumers with access to specific opportunities. Users who registered online were asked to input a host of personal information including full name, email, telephone number, mailing address and photo; they also were asked to provide their eye color, hair color, body type, measurements, gender, ethnicity, age range and birth date.

On January 8, 2018, the FTC announced an agreement with electronic toy manufacturer, VTech Electronics Limited and its U.S. subsidiary, settling charges that VTech violated the Children’s Online Privacy Protection Act (“COPPA”) by collecting personal information from hundreds of thousands of children without providing direct notice or obtaining their parent’s consent, and failing to take reasonable steps to secure the data it collected. Under the agreement, VTech will (1) pay a $650,000 civil penalty; (2) implement a comprehensive data security program, subject to ...

Recently, the Office of the Privacy Commissioner of Canada (“OPC”) issued its 2017 Global Privacy Enforcement Network Sweep results (the “Report”), which focused on certain privacy practices of online educational tools and services targeted at classrooms. The OPC examined the privacy practices of two dozen educational websites and apps used by K-12 students. The “sweep” sought to replicate the consumer experience by interacting with the websites and apps, and recording the privacy practices and controls in place. The overarching theme of the Report is “user controls over personal information,” which the OPC further refined into four subthemes: (1) transparency, (2) consent, (3) age-appropriate collection and disclosure, and (4) deletion of personal information.

On October 23, 2017, the Federal Trade Commission issued a policy enforcement statement providing additional guidance on the applicability of the Children’s Online Privacy Protection Rule (“COPPA Rule”) to the collection of children’s audio voice recordings. The FTC previously updated the COPPA Rule in 2013, adding voice recordings to the definition of personal information, which led to questions about how the COPPA Rule would be enforced against organizations who collect a child’s voice recording for the sole purpose of issuing a command or request.

On October 4, 2017, the Federal Trade Commission and the Department of Education (“DOE”) announced that they will co-host a workshop to explore privacy issues related to education technology. The Ed Tech Workshop, which will take place on December 1, 2017 in Washington, D.C., will examine how the FTC’s Rule implementing the Children’s Online Privacy Protection Act (“COPPA”) applies to schools and intersects with the Family Educational Rights and Privacy Act (“FERPA”), which is administered by the DOE.

On July 31, 2017, the Federal Trade Commission announced that it has approved modifications to TRUSTe’s safe harbor program under the Children’s Online Privacy Protection Rule (the “COPPA Rule”).

On June 21, 2017, the Federal Trade Commission updated its guidance, Six-Step Compliance Plan for Your Business, for complying with the Children’s Online Privacy Protection Act (“COPPA”). The FTC enforces the COPPA Rule, which sets requirements regarding children’s privacy and safety online. The updated guidance adds new information on situations where COPPA applies and steps to take for compliance.

On April 19, 2017, the FTC announced that it is seeking public comment on proposed changes to TRUSTe, Inc.’s safe harbor program under the Children’s Online Privacy Protection Rule (the “Proposed Changes”). As we previously reported, New York Attorney General Eric T. Schneiderman announced that TRUSTe agreed to settle allegations that it failed to properly verify that customer websites aimed at children did not run third-party software to track users. The Proposed Changes are a result of the settlement agreement between TRUSTe and the New York Attorney General.

On April 6, 2017, New York Attorney General Eric T. Schneiderman announced that privacy compliance company TRUSTe, Inc., agreed to settle allegations that it failed to properly verify that customer websites aimed at children did not run third-party software to track users. According to Attorney General Schneiderman, the enforcement action taken by the NY AG is the first to target a privacy compliance company over children’s privacy.

On October 31, 2016, the Standing Committee of the National People’s Congress of China held a third reading of the draft Cybersecurity Law (the “third draft”). As we previously reported, the second draft of the Cybersecurity Law was published for comment in June. The National People’s Congress has not yet published the full text of the third draft of the Cybersecurity Law.

Recently, the Cyberspace Administration of China published for public comment a draft of the Regulations on the Online Protection of Minors (“Draft Regulations”). The Draft Regulations are open for comment until October 31, 2016.

On October 3, 2016, the Texas Attorney General announced a $30,000 settlement with mobile app developer Juxta Labs, Inc. (“Juxta”) stemming from allegations that the company violated Texas consumer protection law by engaging in false, deceptive or misleading acts or practices regarding the collection of personal information from children.

On September 16, 2016, the Belgian Data Protection Authority (the “Privacy Commission”) published a 13-step guidance document (in French and Dutch) to help organizations prepare for the EU General Data Protection Regulation (“GDPR”).

The 13 steps recommended by the Privacy Commission are summarized below.

On June 22, 2016, the Federal Trade Commission announced a settlement with Singaporean-based mobile advertising network, InMobi, resolving charges that the company deceptively tracked hundreds of millions of consumers’ locations, including children, without their knowledge or consent. Among other requirements, the settlement orders the company to pay $950,000 in civil penalties. 

On December 17, 2015, the FTC announced a pair of COPPA settlements against operators of child-directed mobile apps available for download in the major app stores. These cases are the FTC’s first COPPA actions involving the collection of persistent identifiers, and no other personal information, from children since the FTC’s updated COPPA Rule went into effect in 2013. The FTC levied civil penalties, totaling $360,000, in both cases.

Hunton & Williams welcomes Phyllis H. Marcus as counsel to the firm’s privacy and competition teams. Phyllis joins the firm from the Federal Trade Commission, where she held a number of leadership positions, most recently as Chief of Staff of the Division of Advertising Practices. Phyllis led the FTC’s children’s online privacy program, including bringing a number of enforcement actions and overhauling the Children’s Online Privacy Protection Act (“COPPA”) Rule. She offers the privacy team a keen understanding of the complexities of the revised regulations, as well as broader issues relating to student privacy, mobile applications and the Internet of Things.

On September 2, 2015, the French Data Protection Authority (“CNIL”) published the results of an Internet sweep of 54 websites visited by children and teenagers. The sweep was conducted in May 2015 to assess whether websites that are directed toward, frequently used by or popular among children comply with French data protection law. As we previously reported, the sweep was coordinated by the Global Privacy Enforcement Network (“GPEN”), a global network of approximately 50 data protection authorities (“DPAs”). The CNIL and 28 other DPAs that are members of the GPEN participated in the coordinated online audit. A total of 1,494 websites and apps were audited around the world.

On August 7, 2015, Delaware Governor Jack Markell signed four bills into law concerning online privacy. The bills, drafted by the Delaware Attorney General, focus on protecting the privacy of website and mobile app users, children, students and crime victims.

Legislators in New Hampshire and Oregon recently passed bills designed to protect the online privacy of students in kindergarten through 12th grade.

On June 11, 2015, New Hampshire Governor Maggie Hassan (D-NH) signed H.B. 520, a bipartisan bill that requires operators of websites, online platforms and applications targeting students and their families (“Operators”) to create and maintain “reasonable” security procedures to protect certain covered information about students. H.B. 520 also prohibits Operators from using covered information for targeted advertising. H.B. 520 defines covered information broadly as “personally identifiable information or materials,” including name, address, date of birth, telephone number and educational records, provided to Operators by students, their schools, their parents or legal guardians, or otherwise gathered by the Operators.

On May 11, 2015, the French Data Protection Authority (“CNIL”) and the UK Information Commissioner’s Office (”ICO”) announced that they will participate in a coordinated online audit to assess whether websites and apps that are directed toward children, and those that are frequently used by or popular among children, comply with global privacy laws. The audit will be coordinated by the Global Privacy Enforcement Network (“GPEN”), a global network of approximately 50 data protection authorities (“DPAs”) from around the world.

On February 26, 2015, the Department of Education’s Privacy Technical Assistance Center (“PTAC”) issued guidance to assist schools, school districts and vendors with understanding the primary laws regulating student privacy and how compliance with those laws may be affected by Terms of Service (“TOS”) offered by providers of online educational services and mobile applications. The guidance also is intended to aid school districts and schools in implementing separate guidance issued by the PTAC in February 2014. The guidance was accompanied by a short training video directed to teachers, administrators and other relevant staff.

On December 22, 2014, the Federal Trade Commission announced that it notified China-based BabyBus (Fujian) Network Technology Co., Ltd., (“BabyBus”) that several of the company’s mobile applications (“apps”) appear to be in violation of the Children’s Online Privacy Protection Rule (the “COPPA Rule”). In a letter dated December 17, 2014, the FTC warned BabyBus of potential COPPA violations stemming from allegations that the company has failed to obtain verifiable parental consent prior to its apps collecting and disclosing the precise geolocation information of users under the age of 13.

On September 17, 2014, the Federal Trade Commission announced that the online review site Yelp, Inc., and mobile app developer TinyCo, Inc., have agreed to settle separate charges that they collected personal information from children without parental consent, in violation of the Children’s Online Privacy Protection Rule (the “COPPA Rule”).

On September 4, 2014, the Federal Trade Commission announced a proposed settlement with Google Inc. (“Google”) stemming from allegations that the company unfairly billed consumers for mobile app charges incurred by children. The FTC’s complaint alleges that since 2011, Google violated the FTC Act’s prohibition on unfair commercial practices by billing consumers for in-app charges made by children without the authorization of the account holder.

On July 16, 2014, the Federal Trade Commission posted revisions to its Frequently Asked Questions that provide guidance on complying with the Children’s Online Privacy Protection Rule (the “COPPA Rule”). The revisions, which are in Section H of the FAQs, address the COPPA Rule requirement that operators of certain websites and online services obtain a parent’s consent before collecting personal information online from a child under the age of 13.

On July 10, 2014, the Federal Trade Commission announced that it filed a complaint against Amazon.com, Inc. (“Amazon”) for failing to obtain the consent of parents or other account holders prior to billing them for in-app charges incurred by children. According to the complaint, Amazon, which offers children’s apps through its Appstore, bills Amazon account holders in real money for virtual items that children obtain within an app (i.e., “in-app” charges).

The Federal Trade Commission recently acted on three industry proposals in accordance with the new Children’s Online Privacy Protection Rule (the “COPPA Rule”) that came into effect July 1, 2013. Specifically, the FTC determined that it was unnecessary to rule on a proposed parental consent mechanism, approved a proposed “safe harbor” program and is seeking public comment on a separate proposed “safe harbor” program.

On January 15, 2014, the Federal Trade Commission announced a proposed settlement with Apple Inc. stemming from allegations that the company billed consumers for mobile app charges incurred by children without their parents’ consent. Specifically, the FTC’s complaint alleges that Apple violated the FTC Act by not informing account holders that, for a 15-minute window after entering their password to approve a single in-app purchase, their children could make unlimited purchases without further action by the parent.

On December 23, 2013, the Federal Trade Commission announced that it accepted a proposed mechanism, submitted by Imperium, LLC (“Imperium”), to obtain verifiable parental consent in accordance with the Children’s Online Privacy Protection Rule (the “COPPA Rule”) that came into effect July 1, 2013.

On November 22, 2013, New Jersey’s Acting Attorney General announced that the State had entered into a settlement agreement with Dokogeo, Inc. (“Dokogeo”), a California-based company that makes mobile device applications, regarding allegations that one of the company’s mobile apps violated the Children’s Online Privacy Protection Act of 1998 (“COPPA”), the recently amended Children’s Online Privacy Protection Rule (the “Rule”) and the New Jersey Consumer Fraud Act.

On November 13, 2013, the Federal Trade Commission announced that it denied a proposal submitted by AssertID, Inc. for a mechanism to obtain verifiable parental consent in accordance with the new Children’s Online Privacy Protection Rule (the “COPPA Rule”) that came into effect July 1, 2013.

On September 23, 2013, California Governor Jerry Brown signed a bill that adds “Privacy Rights for California Minors in the Digital World” to the California Online Privacy Protection Act (“CalOPPA”). The new CalOPPA provisions prohibit online marketing or advertising certain products to anyone under age 18, and require website operators to honor requests made by minors who are registered users to remove content the minor posted on the site. In addition, operators must provide notice and instructions to minors explaining their rights regarding the removal of content they’ve posted.

On September 9, 2013, the Federal Trade Commission announced that it is seeking public comment on another proposed mechanism (submitted by Imperium, LLC) to obtain verifiable parental consent in accordance with the new Children’s Online Privacy Protection Rule (the “COPPA Rule”) that came into effect July 1, 2013. This announcement follows on the heels of a similar recent announcement that the Commission is seeking public comment on a parental consent mechanism proposed by a different company.

On August 15, 2013, the Federal Trade Commission announced that it is seeking public comment regarding a proposed mechanism to obtain verifiable parental consent in accordance with the new Children’s Online Privacy Protection Rule (the “COPPA Rule”) that came into effect July 1, 2013. The COPPA Rule requires operators of certain websites and online services to obtain a parent’s consent before collecting personal information online from a child under 13.

On July 26, 2013, the Federal Trade Commission announced updates to its frequently asked questions regarding the Children’s Online Privacy Protection Act of 1998 (“COPPA”). The updated FAQs, which have replaced the June 2013 version on the FTC’s Business Center website, provide additional information in the sections addressing websites and online services directed to children and disclosure of information to third parties.

Today, July 1, 2013, the Federal Trade Commission’s changes to the Children’s Online Privacy Protection Rule (the “Rule”) officially come into effect. On December 19, 2012, the FTC announced that it had published the amended Rule following two years of public comments and multiple reviews of various proposed changes.

On May 15, 2013, the Federal Trade Commission announced that it sent educational letters to over 90 businesses that appear to collect personal information from children under the age of 13, reminding them of the impending July 1 deadline for compliance with the updated Children’s Online Privacy Protection Rule (the “Rule”). The letters were sent to domestic and foreign companies that may be collecting information from children that is now considered “personal information” under the Children’s Online Privacy Protection Act (“COPPA”) but was not previously considered “personal information.” The definition of “personal information” under COPPA was expanded to include (1) photos, videos and audio recordings of children; and (2) persistent identifiers that may recognize users over time and across various websites and online services (e.g., cookies and IP addresses).

On May 6, 2013, the Federal Trade Commission announced that it had voted unanimously to reject a request from industry groups to delay the July 1, 2013 deadline for implementation of the updated Children’s Online Privacy Protection Rule (the “Rule”). The groups had argued that the delay was necessary because they needed more time to comply with the changes to the Rule, which the FTC promulgated on December 19, 2012. In its response to the groups, the FTC asserted that the groups have been on notice of the changes since the beginning of the rulemaking process over three years ago, and ...

On April 25, 2013, the Federal Trade Commission released an updated version of its frequently asked questions regarding the Children’s Online Privacy Protection Act of 1998 (“COPPA”). The revised FAQs, entitled Complying with COPPA: Frequently Asked Questions (A Guide for Business and Parents and Small Entity Compliance Guide), provide general information on COPPA’s requirements and also include new guidance on the recent amendments to the Children’s Online Privacy Protection Rule (“COPPA Rule”).

On February 1, 2013, the Federal Trade Commission issued a new report entitled Mobile Privacy Disclosures: Building Trust Through Transparency. The report makes recommendations “for the major participants in the mobile ecosystem as they work to improve mobile privacy disclosures,” offering specific recommendations for mobile platforms, app developers, advertising networks and other third parties operating in this space. The FTC’s report also makes mention of the Department of Commerce’s National Telecommunications and Information Administration’s efforts to engage in a multistakeholder process to develop an industry code of conduct for mobile apps.

On February 1, 2013, the Federal Trade Commission announced that Chairman Jon Leibowitz will step down from his role on February 15, 2013. Leibowitz, who has been with the Commission since 2004 and was appointed Chairman in 2009, leaves the agency with a much more aggressive privacy agenda than the one he inherited, having helped to shape “groundbreaking work on consumer protection and competition issues.” During what may be his final press conference as Chairman, Leibowitz announced a new staff report on mobile app privacy disclosures and an enforcement action against the operator of a social networking app stemming from allegedly deceptive information collection practices that violated Section 5 of the FTC Act and the Children’s Online Privacy Protection Act.

In an interview with Tom Field of BankInfoSecurity, Lisa J. Sotto, partner and head of the Global Privacy and Data Security practice at Hunton & Williams LLP, discussed the top privacy trends and threats for 2013. Lisa predicts that security vulnerabilities will remain the biggest threat to privacy, particularly with the move toward mobile computing. She also talked about key issues to watch in 2013, such as online behavioral advertising, big data and evolving privacy legislation and regulation, especially in the EU and other countries around the globe.

Listen to Lisa’s ...

Internet users have expressed increasing concern about efforts to track their online activities. As the online tracking methods used to target advertisements have expanded in both scope and complexity, regulators have taken notice and have begun to act in the online behavioral tracking and advertising space. In an article published in the November/December 2012 issue of IP Litigator, Lisa J. Sotto, partner and head of the Global Privacy and Data Security practice at Hunton & Williams LLP, and Melinda L. McLellan, a senior associate on the firm’s Privacy and Data Security team ...

U.S. Federal Trade Commission Chairman Jon Leibowitz announced on Monday that David C. Vladeck, director of the FTC's Bureau of Consumer Protection, is leaving the Commission on December 31, 2012 to return to the Georgetown University Law Center.

On December 19, 2012, the Federal Trade Commission announced the adoption of its long-awaited amendments to the Children’s Online Privacy Protection Rule (the “Rule”). The FTC implemented the Rule, which became effective on April 21, 2000, pursuant to provisions in the Children’s Online Privacy Protection Act of 1998 (“COPPA”).

On December 10, 2012, the Federal Trade Commission issued a new report, Mobile Apps for Kids: Disclosures Still Not Making the Grade, which follows up on the FTC’s February 2012 report, Mobile Apps for Kids: Current Privacy Disclosures are Disappointing. The FTC conducted a follow-up survey regarding pre-download mobile app privacy disclosures, and whether those disclosures accurately describe what occurs during use of the apps.

In the opening session of the 34th International Conference of Data Protection and Privacy Commissioners, Conference Executive Committee Chair and Article 29 Working Party President Jacob Kohnstamm introduced this year’s conference. He noted that the topic of this year’s closed session will be profiling. Kohnstamm also indicated that future DPA conferences would focus on the closed session, which typically is comprised of current and former data protection authorities. Among the speakers in the 2012 closed session is Professor Fred H. Cate, Senior Policy Advisor for the Centre for Information Policy Leadership at Hunton & Williams LLP.

On October 4, 2012, the Federal Trade Commission announced that Artist Arena LLC (“Artist Arena”), an operator of fan websites for several popular recording artists, agreed to settle charges that it violated the Children’s Online Privacy Protection Act (“COPPA”) and the FTC’s COPPA Rule (“the Rule”) by improperly collecting personal information from children under the age of 13 without first obtaining verifiable parental consent. The settlement will impose a $1 million penalty on Artist Arena, bar future violations of the Rule and require deletion of the information collected in violation of the Rule.

On September 5, 2012, the Federal Trade Commission issued guidelines for mobile app developers entitled “Marketing Your Mobile App: Get It Right from the Start.” The guidelines are largely a distillation of the FTC’s previously expressed views on a range of topics that have relevance to the mobile app space. They are summarized below:

On August 1, 2012, the Federal Trade Commission announced that it is seeking public comments on additional proposed modifications to the Children’s Online Privacy Protection Rule (“COPPA Rule” or “Rule”). According to the FTC, the second-round revisions modify certain COPPA Rule definitions to “clarify the Rule’s scope and strengthen its protections for the online collection, use, or disclosure of children’s personal information.” The FTC developed these new definitions after reviewing the 350 public comments submitted in response to the Commission’s September 2011 proposal to amend the Rule.

On March 27, 2012, the Federal Trade Commission announced a proposed settlement order with RockYou, Inc. (“RockYou”), a publisher and developer of applications used on popular social media sites. The FTC alleged that RockYou failed to protect the personal information of 32 million of its users, and violated multiple provisions of the FTC’s Children’s Online Privacy Protection Act (“COPPA”) Rule when it collected information from approximately 179,000 children.

In its new report, Mobile Apps for Kids: Current Privacy Disclosures are Disappointing, the Federal Trade Commission issues a “warning call to industry that it must do more to provide parents with easily accessible, basic information about the mobile apps that their children use.” The report indicates:

“Parents should be able to learn what information an app collects, how the information will be used, and with whom the information will be shared. App developers also should alert parents if the app connects with any social media, or allows targeted advertising to occur through the app. Third parties that collect user information through apps also should disclose their privacy practices, whether through a link on the app promotion page, the developers’ disclosures, or another easily accessible method.”

This week, the Digital Advertising Alliance (the “DAA”) unveiled new “Self-Regulatory Principles for Multi-Site Data” (the “Principles”), aimed at expanding the scope of industry self-regulation with respect to online data collection. The Principles are designed to supplement the Self-Regulatory Principles for Online Behavioral Advertising which were issued in July 2009. The DAA is composed of several constituent industry groups such as the American Association of Advertising Agencies, Council of Better Business Bureaus, the Direct Marketing Association and the Interactive Advertising Bureau.

On November 8, 2011, the Federal Trade Commission announced that the operator of skidekids.com, a social networking website that advertises itself as the “Facebook and Myspace for Kids,” has agreed to settle charges that he collected personal information from approximately 5,600 children without parental consent, in violation of the Children’s Online Privacy Protection Act (“COPPA”) Rule. The proposed settlement will bar future violations of COPPA and misrepresentations about the collection, use and disclosure of children’s information.

On September 15, 2011, the Federal Trade Commission released proposed amendments to the Children’s Online Privacy Protection Rule (“COPPA Rule” or “Rule”).  These revisions follow the FTC’s review of the COPPA Rule, which resulted in numerous comments from various groups and individuals, as well as a public round table that took place on June 2, 2010.  The proposed amendments reflect the FTC’s commitment to “helping to create a safer, more secure online experience for children” in the face of rapid technological change.

On August 15, 2011, the Federal Trade Commission announced a settlement with W3 Innovations, LLC, doing business as Broken Thumbs Apps (“W3”) for violations of the Children’s Online Privacy Protection Act (“COPPA”) and the FTC’s COPPA Rule.  This marks the FTC’s first privacy settlement involving mobile applications.

On May 12, 2011, the Federal Trade Commission announced that Playdom, Inc., a Disney subsidiary, has agreed to pay $3 million to settle charges that the company violated Section 5 of the FTC Act and the Children’s Online Privacy Protection Rule (“COPPA Rule”) “by illegally collecting and disclosing personal information from hundreds of thousands of children under age 13 without their parents’ prior consent.”  This settlement marks the largest civil penalty imposed for an FTC COPPA Rule violation.

On September 15, 2010, New York State Attorney General Andrew Cuomo announced a $100,000 settlement with EchoMetrix, a developer of parental control software that monitors children’s online activity.  The settlement comes one year after the Electronic Privacy Information Center (“EPIC”) alleged in a complaint to the Federal Trade Commission that EcoMetrix was deceptively collecting and marketing children’s information.

The Federal Trade Commission is having a very busy week, announcing settlements in three high profile cases all before the close of business Tuesday.

The FTC today announced a settlement with MoneyGram International, Inc., the second largest provider of money transfer services in the U.S., which allegedly facilitated a host of fraudulent activities undertaken by telemarketers and other con artists.  The FTC charged that these practices violated both the FTC Act and the Telemarketing Sales Rule.  MoneyGram has agreed to pay $18 million into a fund that will be used to pay restitution to consumers for facilitating fraud on American consumers from Canada.  The $18 million settlement represents MoneyGram’s total return on $84 million in fraudulent transactions.  The settlement further requires implementation of a comprehensive anti-fraud program that is reminiscent of the Identity Theft Prevention Programs mandated by the FTC's Red Flags Rule, including employee training and ongoing monitoring to detect fraud.

On September 9, 2009, the U.S. District Court for the District of Maine dismissed a lawsuit challenging the validity of the Act to Prevent Predatory Marketing Practices Against Minors (the “Act”), which is set to take effect on September 12, 2009.  The Act prohibits businesses from knowingly collecting or receiving a minor’s health-related information or personal information for marketing purposes without first obtaining verifiable parental consent.  Businesses are also prohibited from using any health-related information or personal information regarding a minor for ...

On September 12, 2009, Maine’s Act to Prevent Predatory Marketing Practices Against Minors (the “Act”) will take effect.  The Act prohibits businesses from knowingly collecting or receiving a minor’s health-related information or personal information for marketing purposes without first obtaining verifiable parental consent.  Businesses are also prohibited from using any health-related information or personal information regarding a minor for the purpose of marketing a product or service to the minor.  Pursuant to the Act, the use of information in such a manner is a ...