FTC requires iOS developers to pay $50K fine for collecting user data

App developers writing applications that target children have to be very careful when they collect and store information about their users. They may find themselves the subject of an FTC investigation.

The Children's Online Privacy Protection Act (COPPA) requires websites and other online entities to obtain parental consent when collecting data on children under the age of 13. The procedure to gain this consent can be cumbersome which is why many websites don't allow children under the age 13 to join. The COPPA Act also applies to mobile applications as W3 Innovations recently found out.

W3 Innovations is the parent company of Broken Thumbs Apps which is responsible for apps such as Zombie Duck Hunt and Emily's Dress Up. These apps are designed for children and apparently collected information about their young users.

According to Ars Technica, the developers compiled over 30,000 email addresses and personal information such as user names from 600 people, many of whom were likely under the age of 13. Parents were unaware this information was being collected and used for marketing purposes.

The FTC stepped in and slapped W3 Innovations with a lawsuit last Friday, August 12th. Rather than fight the charges, the company decided to pay the US$50,000 fine.