FTC Slaps Mobile App Developer for COPPA

Broken Thumbs Apps got its wrist slapped by the Federal Trade Commission for illegally collecting children’s email addresses and other personally identifiable information.

In the first FTC case against a mobile applications developer, the FTC found that several of Broken Thumbs apps were directed at children under 13.  In order to obtain the apps, the children had to provide their email addresses.  In addition, some of the apps included blogs where the users were able to freely post personal information.  Collection of personally identifiable information of children under 13 violates the Children’s Online Privacy Protection Act (COPPA) unless the parents have given prior consent.

Broken Thumbs, which is owned by W3 Innovations, LLC, entered into a consent decree with the FTC.  The company agreed pursuant to the consent decree to pay a fine of $50,000 and to delete all personal information collected.

According to the complaint, Broken Thumbs offered for download from Apple’s App Store more than 40 apps for the iPhone and the iPod Touch that allowed users to play games, share information online, and engage in other activities.  Among the apps were Emily’s Girl World, Emily’s Dress Up, Emily’s Dress Up and Shop, Emily’s Runway High Fashion, Cootie Catch, M.A.S.H., and the Lemon Game.

Some of the apps included blogs and encouraged children to send emails to Emily and to post comments.  Broken Thumbs had collected over 30,000 email addresses and had “collected, maintained and/or disclosed personal information from over 300 Emily’s Girl World app users and approximately 290 Emily’s Dress Up app users who have registered to submit comments.”

The company failed to provide direct notice to parents of its practices regarding the collection, use, and disclosure of children’s personal information and failed to obtain verifiable consent from parents prior to collecting, using, or disclosing children’s personal information, the complaint alleged.

United States of America v W3 Innovations, LLC, dba Broken Thumbs Apps, N.D. Calif. No. CV11-03958 PSG, filed August 12, 2011.