Security News > 2020 > June > FTC Slams Children’s App Developer for COPPA Violations

Children's app developer HyperBeard has agreed to pay $150,000 after being accused by the Federal Trade Commission of illegally collecting children's data without parental consent.

A recent complaint filed by the Department of Justice claims that the app developer allowed third-party ad networks to collect personal data from children using its apps - without notifying parents or obtaining verifiable parental consent.

"If your app or website is directed to kids, you've got to make sure parents are in the loop before you collect children's personal information," said Andrew Smith, director of the FTC's Bureau of Consumer Protection, in a Thursday press release.

The FTC claimed that this violates the Children's Online Privacy Protection Act, which requires child-directed websites, apps and online services to provide notice of their data-collection practices and obtain parental consent prior to collecting personal information from children under 13.

The settlement included a $4 million penalty - but that will be suspended upon payment of $150,000 by HyperBeard "Due to its inability to pay the full amount," said the FTC. In addition to this fine, HyperBeard must also delete any personal information it illegally collected from children under 13, as well as notify and obtain verifiable consent from parents for any child-directed app or website they offer that collects personal information from children under 13.

News URL

https://threatpost.com/ftc-childrens-app-developer-coppa-violations/156355/