Mobile Web and Apps World New Orleans Session 10 Patricia Poss Federal Trade Commission

Mobile Web and Apps World New Orleans Session 10 Patricia Poss Federal Trade Commission

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  Patricia Poss Federal TradeCommission The views expressed are those of the speaker and not necessarily those of the FTC or any other person. 1
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   Mobile Technology Unit  Law enforcement actions  Policy initiatives 2
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   Dedicated staff  Technologist assistance  Testing capabilities 3
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   Section 5 of the Federal Trade Commission Act broadly prohibits “unfair or deceptive acts or practices in or affecting commerce.” ◦ Deception  a material representation or omission that is likely to mislead consumers acting reasonably under the circumstances ◦ Unfairness  practices that cause or are likely to cause substantial injury to consumers that are not outweighed by countervailing benefits to consumers or competition and are not reasonably avoidable by consumers.  Flexible law that can be applied to many different situations, entities, and technologies. 4
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   W3 Innovations  Frostwire  Google  Facebook  Mobile background screeners - warning letters 5
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   Complex ecosystem ◦ Operating system providers ◦ Application developers ◦ Handset manufacturers ◦ Carriers ◦ Ad networks ◦ Service providers 6
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   Screen size  Communication channels: texting, mobile web browser, mobile apps  “On the go” nature of use  Personal  Additional hardware capabilities – camera, microphone, gyroscope, compass, etc.  GPS & location features  Easy sharing of user information  Rapidly evolving technology 7
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   Who collects what information?  How is it used?  With whom is it shared?  Are consumers being adequately informed?  Do they have a choice? 8
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   Issued Final Report, March 2012.  Applies to Mobile environment.  Key elements: Privacy by Design, Simplified Choice, and Greater Transparency. 9
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   Collection and use of data is ubiquitous and often invisible.  Consumers lack an understanding of the nature and extent of this collection.  Many consumers are concerned.  Collection and use has led to significant benefits.  Traditional distinctions between personally identifiable and anonymous data are blurred. 10
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   Make privacy the “default” setting for commercial data practices.  Give consumers greater control through simplified choices and increased transparency.  Implementing will enhance trust and stimulate commerce. 11
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   Intended to articulate best practices for companies.  Intended to assist Congress as it considers privacy legislation.  Not intended to serve as a template for law enforcement action or regulations. 12
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   “Bake-in” privacy -- Companies should promote consumer privacy throughout their organizations.  Companies should incorporate substantial privacy protections into their practices, such as data security, reasonable collection limits, sound retention and disposal, and data accuracy. 13
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   Limit collection to data they need for a requested service or transaction. ◦ Ex. Wallpaper app doesn’t need location. ◦ Location data collection heightens need for reasonable policies for purging data. ◦ Minimize the risk that information could be used in harmful or unexpected ways.  Calls on mobile entities to establish standards that address data collection, transfer, use and disposal, particularly for location data. 14
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   If data is shared with third parties, work to provide more prominent notice and choices about such practices.  Not all companies have adequately disclosed the frequency or extent of the collection, transfer, and use of data. 15
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   Provide easy-to-use choice mechanisms that allow consumers to control whether their data is collected and how it is used.  Companies do not need to provide choice for practices that are consistent with the context. ◦ Fraud preventions, internal operations, fulfillment, legal compliances and public purpose, and first-party marketing.  For practices requiring choice, companies should offer the choice at a time and in a context in which the consumer is making a decision about his or her data.  Companies should obtain affirmative express consent before: ◦ 1) using consumer data in a materially different manner than claimed or ◦ 2) collecting sensitive data. 16
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   Increase the transparency of data practices.  Privacy notices should be clearer, shorter, and more standardized to enable comprehension and comparison.  Calls on mobile participants to develop short meaningful disclosures. ◦ Urges companies providing mobile services to develop standard notices, icons, and other means to communicate with consumers in a consistent and clear way. ◦ Dot Com Disclosure Workshop – May 30, 2012. 17
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   Reviewed kids apps in Apple’s iTunes App Store and Google’s Market.  Looked for disclosures available in the app stores or on developers’ websites.  Very little information disclosed prior to download.  Recommendation – app stores, developers and other ecosystem participants need to improve disclosures regarding data practices. 19
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