FTC Issued a Report for Second Kids' App Report Finds Little Progress in Addressing Privacy Concerns Surrounding Mobile Applications for Children (December 10, 2012)

On December 10, 2012, the Federal Trade Commission (“FTC”) released a report titled “Mobile Apps for Kids: Disclosures Still Not Making the Grade,” which assessed privacy practices in mobile applications designed for children. This follow-up to an earlier 2011 survey revealed minimal improvement in the transparency of privacy disclosures since the first report. The FTC found that many apps were not providing parents with essential information about the data being collected from their children, how it was shared, or who could access it. The report noted that numerous apps included interactive features that allowed for data transmission to third parties, such as advertising networks and analytics companies, often without adequate disclosure to parents.

The findings indicated that a significant number of apps, nearly 60%, transmitted sensitive information, including device identifiers and geolocation, without informing users. Additionally, many apps contained advertising and in-app purchasing options that were not clearly disclosed to parents prior to download, further complicating the informed consent process. For example, while 58% of the reviewed apps featured advertisements, only 15% provided prior notification of this feature. Similarly, just 9% disclosed links to social media, and only a small fraction highlighted in-app purchasing capabilities, which could lead to unexpected charges for parents.

The FTC urged stakeholders in the mobile app industry—app stores, developers, and third-party service providers—to enhance their efforts in providing clear and comprehensible information to parents regarding data collection and sharing practices. The report called for improved design that incorporates privacy protections, straightforward choices about data usage, and greater overall transparency. In response to these ongoing issues, the FTC announced plans for non-public investigations to examine potential violations of the Children’s Online Privacy Protection Act (“COPPA”) and the Federal Trade Commission Act concerning deceptive practices.