Direct Response Marketing

FTC Questions Privacy of Children's Mobile Apps

22 Feb, 2012 By: Jackie Jones

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WASHINGTON – Mobile application stores and app developers might not adequately provide the information parents need to determine what data are being collected from their children, how it’s being shared and whom has access to it, according to a staff report by the Federal Trade Commission (FTC).

While a diverse amount of mobile applications aimed specifically at children have been developed, there was almost no information about the data collection and sharing on promotion pages and in general permission statements, according to the FTC report, “Mobile Apps for Kids: Current Privacy Disclosures Are Disappointing.”

“At the FTC, one of our highest priorities is protecting children’s privacy, and parents deserve the tools to help them do that,” said FTC Chairman Jon Leibowitz. “Companies that operate in the mobile marketplace provide great benefits, but they must step up to the plate and provide easily accessible, basic information, so that parents can make informed decisions about the apps their kids use. Right now, it is almost impossible to figure out which apps collect data and what they do with it. The kids app ecosystem needs to wake up, and we want to work collaboratively with the industry to help ensure parents have the information they need.”

In 2008, there were about 600 apps available to smartphone users. That has since increased to more than 500,000 mobile apps in the Apple App Store and 380,000 in the Android Market today, according to the FTC report.

“Consumers have downloaded these apps more than 28 billion times, and young children and teens are increasingly embracing smartphone technology for entertainment and educational purposes,” the report said. “(Data) highlights the lack of information available to parents prior to downloading mobile apps for their children, and calls on the industry to provide greater transparency about their data practices.”

“In most instances, staff was unable to determine the information on the app store page or the developer’s landing page whether an app collected any data, let alone the type of data collected, the purpose for such collection and who … obtained access to such data,” the FTC added.

The FTC recommends marketers targeting children with apps should play an active role in providing key information to parents, app developers should disclose whether the app connects with social media and whether it contains advertisements, and stores should take more responsibility to educate parents, as well.

“As gatekeepers of the app marketplace, the app stores should do more,” the FTC said.

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