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FTC suggests privacy guidelines for mobile apps

Edward Wyatt | Feb. 4, 2013
The Federal Trade Commission on Friday said the mobile industry should include a do-not-track feature in software and apps and take other steps to safeguard personal information.

In a strong move to protect the privacy of Americans as they use the internet on their smartphones and tablets, the Federal Trade Commission on Friday said the mobile industry should include a do-not-track feature in software and apps and take other steps to safeguard personal information.

The staff report, which was approved by the commission, is not binding, but it is an indication of how seriously the agency is focused on mobile privacy. As if to emphasise that, the commission has separately fined Path, a two-year-old social networking app, $US800,000. It charged the company with violating federal privacy protections for children by collecting personal information on underage users, including almost everyone in users’ address books.

Together the actions represent the government’s heightened scrutiny of mobile devices, which for many Americans have become the primary way of gaining access to the internet, rather than through a laptop or desktop computer.

“We‘ve been looking at privacy issues for decades,” said Jon Leibowitz, the FTC chairman. “But this is necessary because so much commerce is moving to mobile, and many of the rules and practices in the mobile space are sort of like the Wild West.”

The report lays out a clear picture of what sort of activities might bring a company under investigation — like, for example, conveying the impression that an app will gather geolocation data only one time, when, in fact, it does so repeatedly.

For companies like Apple, Google, Microsoft, Amazon and BlackBerry (formerly Research in Motion), the suggestions essentially carry the weight of policy.

But the FTC also has its sights on thousands of small businesses that create apps that smartphone users can download for a specific service. The introduction of the iPhone created a sort of gold rush among start-ups to create apps featuring games, music, maps and consumer services like shopping and social networking.

“This says if you’re outside the recommended behaviour, you’re at a higher risk of enforcement action,” said Mary Ellen Callahan, a partner at Jenner & Block and former chief privacy officer for the Department of Homeland Security.

Morgan Reed, executive director of the Association for Competitive Technology, a trade group representing app developers, said that the organisation generally supported the commission’s report but that it had some concerns about what he called “unintended consequences.”

If app stores are worried about their own liability over whether they have adequately checked the privacy protections of a mobile app they sell, they might err on the side of caution and not screen for privacy at all, he said.

The federal recommendations follow a similar set of guidelines issued last month by the California attorney general, whose tips effectively set the standard for technology companies nationwide, given the state’s huge consumer market.

 

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