Two App Developers Agree on COPPA Settlement with FTC
Friday, December 18, 2015

Two app developers have settled complaints from the Federal Trade Commission (FTC) that they allowed third parties to collect information, including persistent identifiers, through their apps, and allowed third parties to serve advertising to children, in violation of the Children’s Online Privacy Protection Act (COPPA). The FTC’s announcement was released the same day it announced agreement on a stipulated order with LifeLock settling contempt charges related to an earlier order related to data security practices and misrepresentations about those practices. Respondent LAI Systems, LLC agreed to pay a civil penalty of $60,000; Respondent Respondent Retro Dreamer and two of its principals agreed to pay a civil penalty of $300,000. These cases are the first under the updated COPPA Rule, effective July, 2013, that revised the definition of “personal information” to include “persistent identifiers” except when used to support internal operations.

 

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