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Patricia Poss
Federal Trade Commission



              The views expressed are those of the
              speaker and not necessarily those of
                  the FTC or any other person.
                                                     1
   Mobile Technology Unit
   Law enforcement actions
   Policy initiatives




                              2
   Dedicated staff
   Technologist assistance
   Testing capabilities




                              3
   Section 5 of the Federal Trade Commission Act broadly
    prohibits “unfair or deceptive acts or practices in or
    affecting commerce.”
    ◦ Deception  a material representation or omission that is
      likely to mislead consumers acting reasonably under the
      circumstances
    ◦ Unfairness  practices that cause or are likely to cause
      substantial injury to consumers that are not outweighed by
      countervailing benefits to consumers or competition and are
      not reasonably avoidable by consumers.

   Flexible law that can be applied to many different
    situations, entities, and technologies.



                                                                    4
   W3 Innovations
   Frostwire
   Google
   Facebook

   Mobile background screeners - warning
    letters




                                            5
   Complex ecosystem
    ◦   Operating system providers
    ◦   Application developers
    ◦   Handset manufacturers
    ◦   Carriers
    ◦   Ad networks
    ◦   Service providers




                                     6
   Screen size
   Communication channels: texting, mobile web
    browser, mobile apps
   “On the go” nature of use
   Personal
   Additional hardware capabilities – camera,
    microphone, gyroscope, compass, etc.
   GPS & location features
   Easy sharing of user information
   Rapidly evolving technology

                                                  7
   Who collects what information?
   How is it used?
   With whom is it shared?
   Are consumers being adequately
    informed?
   Do they have a choice?




                                     8
   Issued Final Report, March 2012.

   Applies to Mobile environment.

   Key elements: Privacy by Design,
    Simplified Choice, and Greater
    Transparency.



                                       9
   Collection and use of data is ubiquitous and
    often invisible.
   Consumers lack an understanding of the
    nature and extent of this collection.
   Many consumers are concerned.
   Collection and use has led to significant
    benefits.
   Traditional distinctions between personally
    identifiable and anonymous data are
    blurred.


                                                   10
   Make privacy the “default” setting for
    commercial data practices.
   Give consumers greater control through
    simplified choices and increased
    transparency.
   Implementing will enhance trust and
    stimulate commerce.




                                             11
   Intended to articulate best practices for
    companies.

   Intended to assist Congress as it considers
    privacy legislation.

   Not intended to serve as a template for law
    enforcement action or regulations.




                                                  12
   “Bake-in” privacy -- Companies should
    promote consumer privacy throughout their
    organizations.

   Companies should incorporate substantial
    privacy protections into their practices, such
    as data security, reasonable collection limits,
    sound retention and disposal, and data
    accuracy.



                                                      13
   Limit collection to data they need for a
    requested service or transaction.
    ◦ Ex. Wallpaper app doesn’t need location.
    ◦ Location data collection heightens need for
      reasonable policies for purging data.
    ◦ Minimize the risk that information could be used in
      harmful or unexpected ways.
   Calls on mobile entities to establish
    standards that address data collection,
    transfer, use and disposal, particularly for
    location data.

                                                            14
   If data is shared with third parties, work to
    provide more prominent notice and choices
    about such practices.

   Not all companies have adequately disclosed
    the frequency or extent of the collection,
    transfer, and use of data.




                                                    15
   Provide easy-to-use choice mechanisms that allow consumers to
    control whether their data is collected and how it is used.

   Companies do not need to provide choice for practices that are
    consistent with the context.
    ◦ Fraud preventions, internal operations, fulfillment, legal compliances and
      public purpose, and first-party marketing.

   For practices requiring choice, companies should offer the choice
    at a time and in a context in which the consumer is making a
    decision about his or her data.

   Companies should obtain affirmative express consent before:
    ◦ 1) using consumer data in a materially different manner than claimed or
    ◦ 2) collecting sensitive data.




                                                                                   16
   Increase the transparency of data practices.

   Privacy notices should be clearer, shorter, and more
    standardized to enable comprehension and
    comparison.

   Calls on mobile participants to develop short
    meaningful disclosures.

    ◦ Urges companies providing mobile services to develop
      standard notices, icons, and other means to communicate
      with consumers in a consistent and clear way.

    ◦ Dot Com Disclosure Workshop – May 30, 2012.



                                                                17
18
   Reviewed kids apps in Apple’s iTunes App Store
    and Google’s Market.
   Looked for disclosures available in the app stores
    or on developers’ websites.
   Very little information disclosed prior to download.
   Recommendation – app stores, developers and
    other ecosystem participants need to improve
    disclosures regarding data practices.




                                                           19
20
21

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Mobile Web and Apps World New Orleans Session 10 Patricia Poss Federal Trade Commission

  • 1. Patricia Poss Federal Trade Commission The views expressed are those of the speaker and not necessarily those of the FTC or any other person. 1
  • 2. Mobile Technology Unit  Law enforcement actions  Policy initiatives 2
  • 3. Dedicated staff  Technologist assistance  Testing capabilities 3
  • 4. Section 5 of the Federal Trade Commission Act broadly prohibits “unfair or deceptive acts or practices in or affecting commerce.” ◦ Deception  a material representation or omission that is likely to mislead consumers acting reasonably under the circumstances ◦ Unfairness  practices that cause or are likely to cause substantial injury to consumers that are not outweighed by countervailing benefits to consumers or competition and are not reasonably avoidable by consumers.  Flexible law that can be applied to many different situations, entities, and technologies. 4
  • 5. W3 Innovations  Frostwire  Google  Facebook  Mobile background screeners - warning letters 5
  • 6. Complex ecosystem ◦ Operating system providers ◦ Application developers ◦ Handset manufacturers ◦ Carriers ◦ Ad networks ◦ Service providers 6
  • 7. Screen size  Communication channels: texting, mobile web browser, mobile apps  “On the go” nature of use  Personal  Additional hardware capabilities – camera, microphone, gyroscope, compass, etc.  GPS & location features  Easy sharing of user information  Rapidly evolving technology 7
  • 8. Who collects what information?  How is it used?  With whom is it shared?  Are consumers being adequately informed?  Do they have a choice? 8
  • 9. Issued Final Report, March 2012.  Applies to Mobile environment.  Key elements: Privacy by Design, Simplified Choice, and Greater Transparency. 9
  • 10. Collection and use of data is ubiquitous and often invisible.  Consumers lack an understanding of the nature and extent of this collection.  Many consumers are concerned.  Collection and use has led to significant benefits.  Traditional distinctions between personally identifiable and anonymous data are blurred. 10
  • 11. Make privacy the “default” setting for commercial data practices.  Give consumers greater control through simplified choices and increased transparency.  Implementing will enhance trust and stimulate commerce. 11
  • 12. Intended to articulate best practices for companies.  Intended to assist Congress as it considers privacy legislation.  Not intended to serve as a template for law enforcement action or regulations. 12
  • 13. “Bake-in” privacy -- Companies should promote consumer privacy throughout their organizations.  Companies should incorporate substantial privacy protections into their practices, such as data security, reasonable collection limits, sound retention and disposal, and data accuracy. 13
  • 14. Limit collection to data they need for a requested service or transaction. ◦ Ex. Wallpaper app doesn’t need location. ◦ Location data collection heightens need for reasonable policies for purging data. ◦ Minimize the risk that information could be used in harmful or unexpected ways.  Calls on mobile entities to establish standards that address data collection, transfer, use and disposal, particularly for location data. 14
  • 15. If data is shared with third parties, work to provide more prominent notice and choices about such practices.  Not all companies have adequately disclosed the frequency or extent of the collection, transfer, and use of data. 15
  • 16. Provide easy-to-use choice mechanisms that allow consumers to control whether their data is collected and how it is used.  Companies do not need to provide choice for practices that are consistent with the context. ◦ Fraud preventions, internal operations, fulfillment, legal compliances and public purpose, and first-party marketing.  For practices requiring choice, companies should offer the choice at a time and in a context in which the consumer is making a decision about his or her data.  Companies should obtain affirmative express consent before: ◦ 1) using consumer data in a materially different manner than claimed or ◦ 2) collecting sensitive data. 16
  • 17. Increase the transparency of data practices.  Privacy notices should be clearer, shorter, and more standardized to enable comprehension and comparison.  Calls on mobile participants to develop short meaningful disclosures. ◦ Urges companies providing mobile services to develop standard notices, icons, and other means to communicate with consumers in a consistent and clear way. ◦ Dot Com Disclosure Workshop – May 30, 2012. 17
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  • 19. Reviewed kids apps in Apple’s iTunes App Store and Google’s Market.  Looked for disclosures available in the app stores or on developers’ websites.  Very little information disclosed prior to download.  Recommendation – app stores, developers and other ecosystem participants need to improve disclosures regarding data practices. 19
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