Data Privacy Update: FTC Releases Mobile Privacy Report and Settles Action against Path; Facebook to Identify Tracking Advertisements
In a trio of recent data privacy developments, the FTC published mobile data policy recommendations, Path settled an FTC action regarding allegedly unlawful data collection, and Facebook will now tell users which ads are tracking their online activity.
The FTC recently released a staff report calling on mobile services to make their data policies more transparent and accessible to consumers. The report makes recommendations for mobile platform providers, application developers, advertising networks, and other key players in a rapidly expanding marketplace. The recommendations focus on providing consumers clear and timely disclosures about what consumer data is collected and how that data may be used. The report results in part from a May 2012 FTC workshop in which representatives from the industry, academia, and consumer privacy groups examined privacy risks and disclosures on mobile devices.
Noting the expansive growth of services offered on mobile platforms, the report recognizes unique privacy concerns rooted in the “unprecedented amounts of data collection” possible from a single mobile device. The report also notes consumers are increasingly concerned about their privacy on mobile devices, stating “less than one-third of Americans feel they are in control” of their mobile personal data.
With those concerns in mind, the report offers recommendations to improve mobile privacy disclosures. These recommendations are consistent with the broad principles previously articulated in the FTC’s prior March 2012 Privacy Report, which generally called upon companies handling consumer data to adhere to the core principles of “privacy by design,” simplified consumer choice, and greater transparency. The staff report elaborates on these general principles by providing guidance to address the unique challenges presented in the mobile environment (e.g., limited screen space, the centrality of platform and operating system providers, etc.) Among other recommendations, the report suggests:
- Developing privacy best practices and uniform, short-form disclosures;
- Providing just-in-time disclosures to consumers requiring affirmative consent before allowing apps to access sensitive content like geolocation, contacts, or photos;
- Developing a one-stop “dashboard” to review content accessed by apps; and
- Offering a “Do Not Track” mechanism on smartphones to prevent third-parting tracking at the operating system level.
On the heels of the staff report, the FTC also announced a law enforcement action against Path, a mobile-only social network accused of collecting user data without consent. Through its social networking service, Path’s app allows users to upload and share content, including photos, comments, location data, and even the names of songs that the user plays. Among other allegations, the FTC claimed that the Path application automatically collected and stored personal information from users’ mobile device address books without the users’ consent (including names, addresses, phone numbers, email addresses, Facebook and Twitter usernames, and dates of birth). The agency also alleged that Path violated the Children’s Online Privacy Protection Act by collecting personal information from approximately 3,000 children under the age of 13 without parental consent. Path settled with the FTC on the same day that the agency filed its action. Path agreed to pay $800,000 in fines, delete all information for users under 13, and submit a comprehensive privacy plan with updates/assessments every other year for the next 20 years.
Finally, Facebook recently announced it will alert users to advertisements that are based on or track browsing history. When users are logged in to their Facebook account and hover over ads with their mouse, a new pop-up icon will alert users if they are being tracked. The feature is the product of an agreement between Facebook and the Council of Better Business Bureaus, and users are still able to opt out of brand-specific ads, as well as ad tracking altogether.
These developments highlight the continuing regulatory focus on online privacy issues, particularly in connection with social media and mobile applications.