Kelley Drye

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Last week, the FTC announced it had reached another settlement with a plastic lumber company regarding its green marketing claims.  This is the FTC’s third settlement in five months relating to environmental claims for plastic lumber products (the other cases involved N.E.W. Plastics Corp. and American Plastic Lumber, Inc.).

The FTC’s complaint alleges that …

This week, the Federal Trade Commission announced the latest revisions to its Frequently Asked Questions (“FAQs”) document to assist online operators as they work to comply with changes to the Children’s Online Privacy Protection (“COPPA”) Rule that went into effect on July 1, 2013. The updated FAQs provide the following expanded guidance on verifiable parental …

On July 10, 2014, the FTC filed a complaint in federal court alleging that Amazon unlawfully billed parents and other Amazon account holders for unauthorized in-app charges incurred by kids.  The complaint follows a similar FTC settlement with Apple and a similar class action lawsuit against Google. 

The FTC’s complaint alleges that Amazon offers free and paid apps through its App store, many of which are rated for kids and allow in-app charges ranging from $0.99 to $99.99.  Amazon controls the billing process for these in-app charges and retains 30 percent of all in-app revenue.  For all apps, Amazon requires its users to link their mobile device to an Amazon account, which is funded by a credit card or Amazon gift card. 

At the time Amazon introduced in-app charges to the App store in November 2011, users were notified of an in-app charge with a pop-up containing information about the app virtual item identified for purchase and the amount of the charge.  The FTC asserts, however, that a child user could clear the pop-up notification by pressing the “Get Item” button.  Once the user clears the pop-up, the FTC asserts that Amazon did not request further action before billing users’ accounts.  

The complaint highlights internal communications among Amazon employees from December 2011 noting that unlimited in-app charges without requiring a password were causing problems for a large percentage of its customers.   According to the complaint, in March 2012, Amazon updated its in-app charge system to require a password for any single in-app charge over $20, but continued allowing an unlimited number of lesser in-app purchases with no password. …
Continue Reading FTC Files Suit Against Amazon Over Kids’ In-App Purchases

Yesterday, the California Attorney General Kamala Harris released much-anticipated guidance providing website and mobile app operators recommended best practices when disclosing how the operator responds to Do Not Track (“DNT”) signals in its online privacy policy.  

The guidance, “Making Your Privacy Practices Public,” is intended to help companies comply with recent revisions to the California Online Privacy Protection Act (“CalOPPA”), which requires that each privacy policy disclose how the website operator responds to mechanisms, such as DNT signals, that provide consumers with the ability to exercise choice regarding the collection of personally identifiable information (“PII”) over time and across third-party websites.  In addition to best practices on DNT signals, the guidance also provides general recommendations to make privacy policies “more effective and meaningful” to consumers.

The guidance provides the following 10 key recommendations:…
Continue Reading California Releases Guidance on DNT Disclosures for Privacy Policies

On May 8, 2014, the FTC announced a settlement with Snapchat resolving allegations that the popular mobile messaging app deceived consumers over the disappearing nature of users “snaps” and made false and misleading representations concerning its privacy and information security practices.  The FTC took issue with several of Snapchat’s practices and representations:

  • Disappearing “Snaps” – Snapchat represents to users that their snaps (i.e., photos and videos) will “disappear forever” after the user-set time period expires, thereby ensuring users’ privacy and safeguarding against data collection.  According to the FTC’s complaint, however, recipients could circumvent the settings to save or access the snaps in a number of ways.  For example, recipients could open Snapchat messages in third-party apps, take a screen shot of the snaps on an iPhone, or access videos by connecting their mobile device to a computer and retrieving the files through the device directory.  The complaint alleges that these types of workarounds were highly publicized. 
  • Misrepresenting Data Collection Practices – Snapchat’s privacy policy represented to users that the app did not access or track users’ geolocation information.  The FTC complaint asserts that in October 2012, Snapchat integrated an analytics tracking service in the Android system, which transmitted Wi-Fi based and cell-based location information from users’ mobile devices.  Snapchat continued representing in the privacy policy that it did not collect or use geolocation information until February 2013.  In addition, the app allows users to “Find Friends” by entering their mobile number or by accessing the Find Friends feature in the apps menu options.  The privacy policy implied that the user’s mobile phone number was the only information Snapchat collected to find the user’s friends. The FTC contends, however, that when the user chose to Find Friends, Snapchat also collected the names and phone numbers of all the contacts in users’ address books.
    Continue Reading Snapchat Captured in FTC Enforcement

A class action lawsuit was filed last week in California against Google Inc., alleging that many apps in Google’s app marketplace permit children to make virtual purchases within the game without a parents’ knowledge or consent.

The complaint alleges that Google offers free and paid apps through its “Google Play” store, and that many are…

On March 13, 2014, the DC office of Kelley Drye will host a policy discussion on the special considerations in legislative, regulatory, and enforcement initiatives designed to protect children. The discussion will focus on the established and emerging issues in product safety and advertising and marketing products for children.

Kelley Drye is delighted to…

The FTC announced last week that it had reached a settlement with N.E.W. Plastics Corp., d/b/a Renew Plastics, over allegedly improper recyclability and recycled content claims.  The company manufactures plastic lumber products – including its Evolve and Trimax brands – used primarily in outdoor decking and furniture.  According to the FTC’s complaint, the company claimed …