Alert February 05, 2013

FTC Issues Report on Mobile Privacy Disclosures

The FTC issued a report addressing privacy concerns and recommendations related to the use of mobile devices. The report, "Mobile Privacy Disclosures: Building Trust Through Transparency," acknowledges that the mobile market continues to grow and, with that growth, increasing concerns regarding data collection emerge. For example, according to the report, at least 57% of mobile application users have uninstalled an application due to privacy concerns. The report addresses all players of the mobile market, including application developers and developer trade associations, advertising networks, mobile platforms and analytics companies. While the report has specific recommendations for each segment of the industry, the overarching theme is that consumers must be provided with upfront disclosures that they can read and access prior to installing an application, and that applications must provide for affirmative express consent. The FTC also released a data security business guide for application developers.