The Federal Trade Commission (FTC) today announced a settlement with InMobi, a Singapore-based mobile advertising network. The FTC alleged that InMobi engaged in deceptive trade practices in violation of Section 5(a) of the FTC Act by misrepresenting its practices regarding online consumer tracking and collection of information from children. The FTC also alleged that InMobi violated the Children’s Online Privacy Protection Act (COPPA) by failing to comply with COPPA’s notice requirements and failing to obtain verifiable parental consent before collecting and using personal information (including geolocation information) from children under the age of 13.
The penalties imposed were $4 million (suspended to $950,000 based on the company’s financial condition). This case underscores the importance of ensuring that privacy representations are accurate and complying with COPPA. Please contact Faith Kasparian if you have questions about privacy representations and/or whether COPPA applies to your business and how to comply.