Updates on Advertising Law and Privacy Law Trends, Issues, and Developments
Updates on Advertising Law and Privacy Law Trends, Issues, and Developments
On another new episode of the Ad Law Access Podcast, Alysa Hutnik starts at the beginning and explains a few of the issues you need to think about before starting a telemarketing texting campaign.
For additional information see the Ad Law Access blog posts:
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On September 4, 2014, the FTC announced a settlement with Google Inc., which requires the search giant to pay at least $19 million in refunds to consumers that the Commission alleges were billed for unauthorized in-app charges incurred by kids. The settlement follows a similar settlement in January with Apple (which required Apple to pay a minimum of $32.5 million in refunds), and a recent complaint filed by the FTC in federal court against Amazon.
The FTC’s complaint against Google alleges that the company offered free and paid apps through its Play store. Many of these apps are rated for kids and offer “in-app purchases” ranging from $0.99 to $200, which can be incurred in unlimited amounts. The FTC alleges that many apps invite children to obtain virtual items in a context that blurs the line between what costs virtual currency and what costs real money.
At the time Google introduced in-app charges in March 2011, users were notified of an in-app charge with a popup containing information about the virtual item and the amount of the charge. A child, however, could clear the popup simply by pressing a button labeled “CONTINUE.” In many instances, once a user had cleared the popup, Google did not request any further action before billing the account holder for the corresponding in-app charge.
It was not until mid- to late-2012 that Google begin requiring password entry in connection with in-app charges. The complaint alleges, however, that once a password was entered, it was stored for 30 minutes, allowing a user to incur unlimited in-app charges during that time period. Regardless of the number or amount of charges incurred, Google did not prompt for additional password entry during this 30 minute period.
Google controls the billing process for these in-app charges and retains 30 percent of all revenue. For all apps, account holders can associate their Google accounts with certain payment mechanisms, such as a credit card, gift card, or mobile phone billing. The complaint highlights that Google received thousands of complaints related to unauthorized in-app charges by children and that unauthorized in-app purchases was the lead cause of chargebacks to consumers. …
Continue Reading Google to Refund at Least $19 Million Over Kids’ In-App Purchases
On March 28, 2014, the FTC announced two new mobile app settlements – with Fandango and Credit Karma – based on allegations that the companies failed to secure the transmission of consumers’ sensitive personal information collected via their mobile apps and misrepresented the security precautions that the companies took for each app.
Specifically, the FTC…
New rules issued by the Federal Communications Commission ("FCC") last year are about to take effect. These rules will make it more difficult for businesses to make telemarketing calls and texts to wireless customers and to certain residential customers by requiring express written consent (1) to make telemarketing calls using an autodialer or prerecorded message…
In December 2012, the California Attorney General filed a lawsuit against Delta Airlines, Inc. (“Delta”) alleging that Delta violated California’s Online Privacy Protection Act by failing to post a privacy policy within its Fly Delta mobile app. It was the first mobile app enforcement action brought by the California Attorney General and closely followed the…
Most marketers know they are legally required to get permission before sending text messages to consumers. Despite this, the number of lawsuits involving (allegedly) unsolicited text messages keeps growing, as does the cost of settling these suits. Although the first cases in this area involved practices that were clearly unlawful — such as sending text…
The use of mobile apps for health purposes has created new questions for users, developers, and regulators regarding the balance between convenience, expanded health care, and public safety. The line between apps that are useful tools for accessing health information and those that are considered medical devices can be unclear but is very important for…
On Tuesday, the Federal Trade Commission announced final revisions to the guidance it gives to advertisers on how to keep endorsement, testimonial, and other digital ads in compliance with the FTC Act, ".com Disclosures, How to Make Effective Disclosures in Digital Advertising." The Revised Guide expands on the initial version released in 2000 by providing…
On February 7, 2013, the Network Advertising Initiative (“NAI”) released its 2012 Annual Compliance Report addressing member organizations’ adherence to the NAI Code. The NAI Code is one of the leading industry self-regulatory codes of conduct governing online behavioral advertising (“OBA”) for third party digital advertising companies (such as advertising networks).
The 2012 Compliance …
On December 10, the FTC issued the staff report, “Mobile Apps for Kids: Disclosures Still Not Making the Grade.” The report describes the results of a recent survey by FTC staff that examined the privacy disclosures and practices associated with 400 mobile apps targeted to children. The report follows up on a similar FTC staff…
