Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC warns Chinese app developer BabyBus of potential COPPA violations, (Dec 23, 2014)

By Linda O’Brien, J.D., LL.M.

The staff of the FTC sent a letter to BabyBus, a China-based developer of mobile applications directed to children, warning that the company may be in violation of the Children’s Online Privacy Protection Act (COPPA) Rule.

In the letter, the FTC noted that the child-directed applications marketed by the company appear to collect precise geographic location information about users that is transmitted to third parties, including advertising networks and/or analytics companies. The letter stated that the company does not get parents’ consent before collecting children’s personal information, which would appear to violate the COPPA Rule.

The letter noted that the company’s applications—available on the Apple App Store, Amazon App Store and Google Play—have been downloaded millions of times. The apps are clearly directed to children from ages one to six, including apps that teach letters, numbers, and shapes. The letter was also sent to the three application marketplaces.

The COPPA Rule requires companies collecting personal information from children under age 13 to post clear privacy policies and to notify parents and get their consent before collecting or sharing any information from a child. The Rule was revised in 2013 to adapt to the growth of mobile technology aimed at children and give parents greater control over the online collection of their children’s personal information.

The letter requested that the company evaluate its apps and determine whether they may be in violation, as well as informing the company that the Commission would review the apps again in the next month to ensure they were in compliance with the rule.

The Commission vote to authorize the public release of the letter was 5-0.

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