Dec. 18 — Without admitting or denying any wrongdoing, application developers LAI Systems LLC and Retro Dreamer agreed Dec. 17 to pay a total of $360,000 in civil penalties to settle Federal Trade Commission allegations that they violated the Children's Online Privacy Protection Act.
According to the FTC, these cases were the first in which the commission alleged that companies allowed advertisers to use “persistent identifiers”—pieces of data that are tied to a particular user or device, such as cookies—to deliver advertisements to children.
Persistent identifiers were among the categories added to the definition of personal information when the COPPA Rule was updated in 2013.
According to the FTC's complaint, filed in the U.S. District Court for the Central District of California, LAI Systems created multiple apps targeted at children, including My Pizza Shop, Hair Salon Makeover and My Cake Shop. LAI Systems allegedly allowed third-party advertisers to obtain children's personal information in the form of persistent identifiers. LAI allegedly failed to provide or get consent from children's parents to collect and use the information. To settle the FTC's allegations, LAI Systems agreed to pay a $60,000 penalty.
In its complaint against Retro Dreamer and its principals, the commission alleged that the company created a number of apps targeted to children, including Ice Cream Jump, Happy Pudding Jump and Ice Cream Drop. The defendants allegedly allowed third party advertisers to collect children's personal information. To settle the allegations, Retro Dreamer agreed to pay a $300,000 penalty.
Under the terms of the settlements, both companies also agreed to be enjoined from future violations of the COPPA Rule.
In November, the FTC unanimously approved a proposal to verify parental consent for their children to access online services by “validating a parent's face against an online presentation of verified photo identification”.
To contact the reporter on this story: Jimmy H. Koo in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Donald G. Aplin at email@example.com
Full text of the stipulated order against LAI Systems is available at http://www.bloomberglaw.com/public/document/United_States_of_America_v_LAI_Systems_LLC_Docket_No_215cv09691_C.
Full text of the stipulated order against Retro Dreamer is available at http://www.bloomberglaw.com/public/document/United_States_of_America_v_Retro_Dreamer_et_al_Docket_No_515cv025.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)