Friday, May 10, 2013

The Application Privacy, Protection and Security Act of 2013

Congress has recently introduced the Application Privacy, Protection and Security Act of 2013 (HR1913).  This legislation would require mobile application developers to disclose what data they collect and how they utilize, share, and archive the data they capture.

In January, 2013, the California Attorney General's office issued a privacy report on the mobile apps ecosystem.  Subsequently, on February 1, 2013, an FTC report recommended ways for mobile app developers to improve privacy disclosures.  At that time, the FTC stated that app developers should:
  • Have a privacy policy and make sure it is easily accessible through the app stores;
  • Provide just-in-time disclosures and obtain affirmative express consent before collecting and sharing sensitive information (to the extent the platforms have not already provided such disclosures and obtained such consent);
  • Improve coordination and communication with ad networks and other third parties that provide services for apps, such as analytics companies, so the app developers can better understand the software they are using and, in turn, provide accurate disclosures to consumers.
HR 1913 appears it will make some of the FTC's recommendations mandatory.  Its unfortunate that the actions of some members of the app ecosystem may lead to further regulation of the entire industry.

To learn more about these issues you may contact me at www.shearlaw.com.

Copyright 2013 by the Law Office of Bradley S. Shear, LLC.  All rights reserved.

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