Yelp, an online review site, and TinyCo, a mobile app developer, have agreed to settle Federal Trade Commission charges they improperly collected children’s information.
Under the terms of the settlements, Yelp will pay a $450,000 penalty, and TinyCo will pay a $300,000 penalty.
“As people – especially children – move more of their lives onto mobile devices, it’s important that they have the same consumer protections when they’re using an app that they have when they’re on a website,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “Companies should take steps as they build and test their apps to make sure that children’s information won’t be collected without a parent’s consent.”
Federal law requires that companies collecting information about children under 13 online follow steps so children’s information is protected, including disclosing how the information is used to parents and seeking parental consent before collecting any information from a child.
Yelp
The FTC’s lawsuit against Yelp alleges that, from 2009 to 2013, the company collected personal information from children through the Yelp app without first notifying parents and obtaining their consent.
Several thousand of those who registered provided a date of birth showing they were under 13 years old, and Yelp collected information from them including their name, e-mail address, and location, as well as any information that they posted on Yelp.
In addition to the $450,000 penalty, Yelp is required delete information it collected from those who said they were 13 years of age or younger at the time they registered.
TinyCo
The FTC’s lawsuit against TinyCoalleges that many of the company’s popular apps, which were downloaded more than 34 million times, targeted children.
Apps named in the lawsuit are Tiny Pets, Tiny Zoo, Tiny Monsters, Tiny Village, Mermaid Resort, and others. The lawsuit alleges that the apps, through their use of themes appealing to children such as brightly colored animated characters and simple language, were directed at children under 13.
In addition to the $300,000 penalty, TinyCo is required to delete the information it collected from children under 13.
