Yelp, TinyCo Settle with FTC over Child Privacy Violation Accusations
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evergreenpics/iStock Editorial/Thinkstock(NEW YORK) — A pair of companies settled charges filed by the Federal Trade Commission on Wednesday after being accused of collecting personal data on children under the age of 13.
Online review company Yelp and mobile app developer TinyCo each settled separate charges that they collected children’s information in violation of the Children’s Online Privacy Protection Act. “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,” Jessica Rich, Director of the FTC’s Bureau of Consumer Protection, said.
“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,” Rich added.
Between 2009 and 2013, Yelp allegedly collected personal information including names, e-mail addresses and locations of its users, including those who registered with a date of birth that showed they were under 13 years old. Yelp, the FTC says, failed to utilize a functional age screen in its apps. The company settled on Wednesday, agreeing to a $450,000 civil penalty and a promise that they will delete all information collected from users who were under the age of 13 when they registered with Yelp.
TinyCo similarly collected e-mail addresses from users, including those under the age of 13, in some cases in exchange for in-game currency. TinyCo will pay a $300,000 civil penalty, delete all information from users under the age of 13, and submit a compliance report detailing its adherence to COPPA in one year.
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