Earlier this month, the Federal Trade Commission published a guide for mobile app developers on how to comply with advertising and privacy regulations.
A must-read for anyone in this business, "Marketing your mobile app: getting it right from the start" lists nine recommendations to help developers incorporate legal compliance into their design because:
"Laws that apply to established businesses apply to you, too, and violations can be costly. In addition, satisfied users may be your best form of marketing. Breaking into the business with an app that delivers on its promises is key to your long-term success." (FTC)
Culled from updates by three leading law firms in this space, here are key takeaways on the FTC's privacy guidance for mobile app developers:
1. Honesty is the best policy:
"'Whether it's what you say on a website, in an app store, or within the app itself, you have to tell the truth,' the publication advises. False or misleading claims, as well as the omission of certain important information, may violate state or federal laws. Objective claims about an app require substantiation, and claims related to health, safety, or performance typically require competent and reliable scientific evidence." (Loeb & Loeb)
2. Respect and protect user privacy:
"Even when you're not dealing with kids' information, it's important to get users' affirmative OK before you collect any sensitive data from them, like medical, financial, or precise geolocation information... Statutes like the Graham-Leach-Bliley Act, the Fair Credit Reporting Act, and the Federal Trade Commission Act may require you to provide reasonable security for sensitive information." (Mintz Levin)
3. Keep your word:
"The FTC cautioned that '[c]hances are you make assurance to users about the security standards you apply or what you do with their personal information.' Systemic failure to honour these promises or take reasonable steps to protect personal information may lead to FTC enforcement action." (Fraser Milner Casgrain)
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