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High-Tech Law & Litigation Blog

  • 12
  • January
  • 2018

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FTC Reaches First COPPA Settlement With Connected Toy Manufacturer

Earlier this week, the Federal Trade Commission announced that it had reached a settlement with VTech Electronics Limited, a Chinese manufacturer of electronic learning toys, and its North American subsidiary over charges that VTech violated the Children’s Online Privacy Protection Rule (“COPPA”), a rule designed to “strengthen kids’ privacy protections and give parents greater control over the personal information that websites and online services may collect from children under 13.” The FTC’s complaint centered on three web-based platforms VTech created and maintained to support its numerous connected toys. The platforms are the Learning Lodge Navigator, a platform akin to Apple’s App Store that allows users to download games and content to their VTech devices; Kid Connect, a children’s messaging app for smart phones; and Planet VTech, an online platform that allows online game play and messaging between users. Each of these products allowed for children to share personal information or required registration from parents, including information such as a child’s name and age. In some instances, VTech stated that the collected information would be encrypted, which it was not.

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  • 26
  • October
  • 2017

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The FTC Issues Clarifications on the Children’s Online Privacy Protection Rule and Voice Recordings

On October 23, 2017, the Federal Trade Commission released a new policy enforcement statement regarding the Children’s Online Privacy Protection Rule (“COPPA”), a rule designed to “strengthen kids’ privacy protections and give parents greater control over the personal information that websites and online services may collect from children under 13.” The FTC’s new policy statement clarifies that the Commission will not require online providers and websites to acquire parental consent for the recording of a child’s voice for the purpose of replacing written words — such as for a command or a search done using a home voice control system. For example, the FTC will not enforce if a home voice control system records a child’s voice when they ask a question or give a request. This clarification is not without limit, as we explain here.

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Uber Settles with the FTC, Tying Itself to the Agency For Up To 20 Years

On August 15, 2017, three years after it faced backlash from the media, Uber has settled with the Federal Trade Commission (FTC) over allegations that despite its representations, the company failed to secure customer data and failed to monitor employee access to that data, thus engaging in unfair or deceptive acts or practices affecting commerce in violation of the Federal Trade Commission Act, 15 U.S.C. § 45(a). We cannot explain why it took three years for the decision to be issued. Regardless, the decision is a reminder that parties must accurately describe their security programs, must take reasonable and appropriate steps to protect personal information, and must test the efficacy of their privacy programs.

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Contributors

Jason A. Levine

Jason A. Levine Partner

Jennifer C. Chen

Jennifer C. Chen Partner

Devika Kornbacher

Devika Kornbacher Partner

Danny Tobey

Danny Tobey Partner

William R. Vigdor

William R. Vigdor Partner

Marc A. Fuller

Marc A. Fuller Counsel

John Andren

John Andren Associate

Thomas W. Bohnett

Thomas W. Bohnett Associate

Megan Coker

Megan Coker Associate

Caroline Colpoys

Caroline Colpoys

Trey Hebert

Trey Hebert Associate

Keeney, Jeremy C.

Jeremy C. Keeney Associate

Howard Lithaw Lim Associate

Kimberly R. McCoy

Kimberly R. McCoy Senior Associate

Elizabeth Krabill McIntyre

Elizabeth Krabill McIntyre Senior Associate

David C. Smith

David C. Smith Senior Associate

Janice Ta

Janice Ta Senior Associate

Margaret D. Terwey

Margaret Dunlay Terwey Associate

Ryan B. Will

Ryan Will Associate

Siho (Scott) Yoo

Siho (Scott) Yoo Senior Associate