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FTC: Apple and Google need to improve privacy protection in kids' apps
Having investigated 400 randomly chosen apps for kids, the FTC has noted that almost 60 percent of them were transmitting sensitive device information to developers, advertisers or analytics firms. The report points the finger at the app makers and the lack of information given on privacy and interactive features of their wares, with the majority not disclosing the information shared in the app description. Focusing on Apple and Google apps, only 20 percent of those surveyed disclosed any data collection that might occur -- data that often included the location, phone numbers and device IDs of whatever the little tykes were playing on. It's the second such survey from the FTC, which deems the results "disappointing" since hardly any progress has been made since the commission first noted this stealth sharing issue. FTC Chairman Jon Leibowitz said, "All of the companies in the mobile app space, especially the gatekeepers of the app stores, need to do a better job." In short, the FTC wants Apple and Google to get more involved in policing these apps, and it's been pressing that point for quite some time already.
FTC calls Motorola's bid for Apple product injunction 'inappropriate'
On December 5, the Federal Trade Commission (FTC) stated in a filed brief that it felt a previous district court decision to deny Motorola's bid for an injunction of several Apple products was correct. Motorola had claimed that Apple's iPhone and iPad allegedly infringed on wireless patents, and requested that the courts block Apple from selling iPhones and iPads in the United States. The FTC brief said that a court-ordered injunction is inappropriate when the holder of a patent has licensed it under fair, reasonable and nondiscriminatory (FRAND) terms. The FTC felt that Motorola might have been using the threat of an injunction in what is called "patent hold-up." When a patent is considered standard-essential (SEP), the patent owner sometimes threatens legal action to get higher than usual royalty rates and licensing terms. For budding Apple lawyers, the brief can be found here in its entirety.
Obama signs Safe Web Act into law, extends FTC power to combat online scam artists
See that guy? The one in the bubble? He's probably up to no good. Thanks to President Obama, however, he's going to have a much harder time duping innocent young ladies like the one also shown here. Per The Hill, the POTUS has just signed into law the Safe Web Act, which extends the Federal Trade Commission's authority to "clamp down on Internet fraud and online scammers based abroad." In simpler terms, it enables the entity to share data about "cross-border online fraud with foreign law enforcement authorities" through September of 2020. According to an unnamed official within the FTC, the existing edition of this act has allowed it to conduct over 100 investigations into cross-border fraud and scam, but it's unclear how much crime was stopped and how many people were needlessly annoyed. We kid, we kid.
Court approves FTC's $22.5 million penalty for Google over Safari cookies
The FTC might not have been impressed with Google bypassing Safari cookie settings in the name of +1 functionality, but it'll at least be satisfied with the outcome. A Northern District of California federal court has approved the FTC's proposed settlement, which sees Google pay a $22.5 million penalty in addition to altering its cookie behavior to respect privacy in Apple's browser. The fiscal punishment is a drop in the bucket for a company that might well make up that loss by the time you're done reading this; all the same, we'll take it if other web companies are more mindful of their behavior in the future.
FTC offers $50,000 prize for stopping illegal robocalls, we could have used this a few months ago
Robocalling is considered a plague in the modern phone world, especially during an election year -- and while you likely won't get rid of all the pitches from political candidates anytime soon, most of the commercial calls are outright illegal. The Federal Trade Commission has devised a unique contest to help cut back on those law-breakers without having to chase down every shady debt relief offer. It's offering a $50,000 reward for the cleverest solution to blocking the banned variety of robocalls. The only requirement is that you be an adult US resident: if you can invent a surefire remedy in your basement, the FTC wants to hear from you. Entries will be open between October 25th and January 17th, with word of a winner around April 1st. We're hoping that the champion has a truly effective cure in use before long, because we'll undoubtedly have reached our breaking point on robocalls by... oh, around November 6th. [Image credit: SarahNW, Flickr]
FTC closes investigation into Facebook's buyout of Instagram, filtered photo fans rejoice
While the financials for Mark Zuckerberg and his minions hasn't been the best of late, Facebook got some good news today when the FTC closed its investigation of the social network's acquisition of Instagram. That means that the merger now has the green light to be completed, and filtered photographs will be joining all those pokes, likes and Spotify songs in Timelines sooner rather than later. You can get the good news straight from the government's mouth at the source below.
FTC considering new settlement process so companies can't deny wrongdoing
Google recently paid the FTC $22.5 million and Facebook was ordered by the commission to change the way it handles data, but you might be surprised to hear that both companies did nothing wrong. Well, not exactly, but by settling their privacy violation cases, the internet giants are entitled to deny any misconduct. The New York Times reports that J. Thomas Rosch, a commissioner who voted against both settlements, feels that current rules will invite "denials of liability in every case in the future." Rosch wants the policy changed so companies can't deny responsibility when settling, much like the way the SEC handles similar indiscretions. Most of his colleagues weren't in a hurry to back his opinions, but three did say that refining the process could "avoid any possible public misimpression" of how the FTC strikes such deals. The commission is expected to look at the issue in the near future, but until then, we're sure you're more than able to separate the reality from the legalese.
FTC and Facebook settle privacy dispute, skip the fine
Well, Mark Zuckerberg is finally trying to make things right after admitting to a "bunch of mistakes" when dealing with user privacy on his juggernaut of a social network. The FTC and Facebook had agreed to settle the dispute in November, and now the final details of the deal have been ironed out. Noticeably missing from the list of concessions is cash. The government isn't asking Facebook to cough up any dough as part of the settlement -- avoiding the sort of hefty fine that Google recently found itself on the wrong end of. The company will, however, have drastically revamp how it handles user data and subject itself to privacy audits every two years for 20 years. Customers will now be provided with "clear and prominent" warnings any time information is shared. And, before anything can be shared, users must give express consent to for that information to be distributed. Ideally, these measures would have been in place on day one, but we'll take what we can get at this point. For more details, check out the FTC's press release after the break.
Google to pay $22.5 million to settle FTC charges over tracking cookies in Apple's Safari browser
Google has agreed to pay a $22.5 million penalty to settle its dispute with the FTC, over the company's role in bypassing browser settings in Apple's Safari web browser. Although it stated that it wouldn't use tracking cookies or targeted ads in the web browser, a loophole was discovered, violating a previous privacy settlement between the FTC and Google. According to the commission, the company exploited an exception in the browser's default settings, adding a temporary cookie that could temporarily open up access to all cookies from the DoubleClick domain. While the exploit was patched by Google, for a limited time, it was able to track Safari users that had explicitly opted out. The FTC's full statement is right after the break.
Congressmen tell ITC to lay off Microsoft in Xbox patent litigation
If the ITC didn't enjoy being told what to do by the FTC, it's probably less thrilled that Congress (and Apple) has joined in. The ITC found that the Xbox 360 violated four of Motorola's patents back in April, and when a final ruling is made, could see the console banned from sale. Several members of the chamber have voiced their disapproval of any such ban, with similar words of support coming from Apple's lawyers, accusing Motorola of abusing FRAND patents. After this deluge of letters, we're half expecting ITC chief Deanna Okun to start shouting "Don't tell me what I can't do!" at passers-by.
FTC urges ITC not to ban iPhone, iPad and Xbox
The Federal Trade Commission took on the growing problem of injunctions in a letter addressed to the US International Trade Commission, according to a report by CNET. The letter was meant to dissuade the federal agency from approving import bans in patent and trademark infringement cases that involve industry standards like 3G. The FTC warns such injunctions against products like the iPhone, iPad and Xbox could harm consumers and stifle innovation. The FTC writes, "Hold-up and the threat of hold-up can deter innovation by increasing costs and uncertainty for other industry participants, including those engaged in inventive activity. It can also distort investment and harm consumers by breaking the connection between the value of an invention and its reward -- a connection that is the cornerstone of the patent system." The ITC has been the focus of several high-profile patent infringement cases, including the recent battle between Apple and HTC, which led to the ban of select HTC Android phones. Last month, the HTC One X and the EVO 4G LTE were held temporarily at the border by US Customs, which inspected the phones for patent infringement. A bigger issue brought up in this letter is the use of standards-related patents in litigation. Companies that own patents on standards, like those that govern 3G and 4G wireless communications, are supposed to be license these patents to other companies on fair and reasonable terms (FRAND). Now that competition is heating up, patent owners are reluctant to license their intellectual property and are using them to sue their rivals instead. You can read an excellent analysis of this issue by Florian Mueller of FOSS Patents. He describes in detail how Samsung and Motorola are abusing the principles of FRAND licensing in their litigation with Apple.
FTC tells ITC that bans over standards-based patents aren't kosher, looks warily at Motorola and Samsung
Most of the scrutiny over abuse of standards-based patents has come through European Union investigations of Motorola and Samsung. That attention might come to the US if the Federal Trade Commission has its way. It just sent a letter to the International Trade Commission arguing that companies should be blocked from landing bans if they base their disputes on standards. These kinds of blockades "deter innovation" and spur companies to try for much more of a cash windfall from a patent than it's really worth, the FTC argues. The letter doesn't directly accuse anyone of getting their fingers dirty, but there's little doubt that it's referring to Motorola (now part of Google) and Samsung: their varying ITC disputes against Apple and Microsoft are often based around standards patents for technologies like 3G and H.264 video, which aren't supposed to demand legal action except as a last resort. An angry FTC missive doesn't constitute a formal investigation that would actively worry either Motorola or Samsung, but it certainly fires a warning shot across the bow.
Explicit consent becomes mandatory with latest 'do not track' proposal, backs Microsoft into the corner
Remember how Microsoft said it'd enable the "do not track" feature by default for all users of Internet Explorer 10? Well, it's not likely to happen -- at least from the looks of things. The move caused more than an uproar in the advertising industry, which had agreed to abide by these preferences only if users could, indeed, choose for themselves. With Microsoft's bullish decision to go forward and make this setting default, advertisers argued they'd be left with no choice but to bust the deal wide open and ignore these preferences. In attempt to make sure the whole "do not track" effort isn't derailed, the latest compromise proposal -- authored by the EFF, Mozilla and Jonathan Mayer of Stanford University -- now includes a specific provision that requires users to provide explicit consent before any tracking preferences can be transmitted. The same document acknowledges that the proposal has yet to be extensively discussed with stakeholders, but from the looks of things, "do not track" by default seems headed for a quick death. It's too bad we didn't have the time to get better acquainted with Microsoft's heavy lash against advertisers, but we've a feeling that you can decide this one for yourselves, right? [Image credit: Tomas Fano, Flickr]
Microsoft sets 'do not track' as default on IE10, ruffles feathers
Internet Explorer 10 on Windows 8 won't be the first major browser to pack a "do not track" component, but it'll be the first to have it switched on by default. Though Microsoft doesn't yet support the feature on its own websites, it plans to help hammer out the protocols by cooperating with industry, government and standards organizations in the months ahead. With Twitter's support for the measure, the crew in Redmond isn't the only one kicking the privacy ball forward. The Digital Advertising Alliance, however, isn't pleased with the development, in no small part because it struck a deal with the White House to honor "do not track" so long as it's not a default setting. Despite the move, Microsoft said it hopes users will choose to share their data with advertisers to receive more relevant advertising. Hit the more coverage links for added details on Microsoft's feather ruffling. [Image credit: Tomas Fano, Flickr]
Korean government raids Blizzard over Diablo 3 complaints
The Korean Federal Trade Commission raided Blizzard's Seoul office on Monday as part of an investigation into consumer claims that Blizzard has refused to refund Diablo 3 to eligible Korean players.The FTC says it suspects Blizzard of violating Korean law on electronic commerce and commercial contracts, and it gathered documents and other evidence relevant to its investigation in the raid. Some Korean players were frustrated with Diablo 3's server issues at launch and asked for refunds, which Blizzard denied, citing its sales contract terms, The Korea Times reports. The FTC considers these terms to be disadvantageous to players."We have received many complaints from Diablo 3 users," FTC spokesman Kim Hyung-bae says.Another angle the FTC is investigating is whether Blizzard should be held liable for its "ill-preparation" in regards to player traffic, The Korea Times says.On that note, who has a raid tonight? Oh, the Korean government. Right.
Korean government raids Blizzard over alleged Diablo III wrongdoing
Blizzard is on the hot seat as the Korean Fair Trade Commission raided the studio's Seoul office to gather evidence as to whether or not Blizzard violated the country's law. The FTC performed the raid due to allegations that Blizzard is refusing to refund players who purchased and were attempting to return Diablo III. Dissatisfied customers who couldn't log into the game were denied a full refund by Blizzard, which said that it was under no obligation to do so under the game's contract. The studio claims that it has a strict policy of "no refunds" in the country if a product is used. The players turned to the FTC for help, and the commission responded by launching an investigation. The investigation will sort through the seized documents and evidence to see if there is a possible violation of Korea's electronic commerce and commercial contracts law. The FTC confirmed that it had received "many complaints" from Diablo III players but did not comment further on the investigation. Blizzard has since vowed to increase server capacity but is not budging on the refunds.
FTC to investigate Nexon's alleged hostile takeover of Gamania
Nexon's recent acquisition of Taiwanese publisher Gamania will be scrutinized by the Fair Trade Commission (FTC), according to a report in the Taipei Times. A hostile takeover is alleged, and FTC chairman Wu Shiow-ming said the commission will "ask Nexon to comment on its definition of Gamania's market share, the particular field it defines Gamania as being in, and its current relations with Gamania." This will help determine whether Nexon has violated the Fair Trade Act, which mandates that any merger involving a company with more than 25% market share in a particular field must be reported to authorities. Gamania contacted the FTC, ostensibly out of concern for Nexon's impact on the Taiwanese gaming industry. "It would be absolutely detrimental to the development of Taiwan's online gaming industry if a large-scale foreign corporation was allowed to take control of the local industry's operating channels and resources, whether the integration is horizontal or vertical," the company said.
Twitter teams up with Mozilla to help you opt-out of tracking
What better place to announce Twitter's embrace of do not track policies than during a privacy panel at New York Internet Week? Federal Trade Commission CTO Ed Felten let the news slip today -- a fact later confirmed by Twitter and Mozilla. The service has been added to Firefox's Do Not Track feature, letting users opt-out of data-tracking cookies in the browser. More information on the feature can be found in the Mozilla source link below.
WD grits teeth, hands over the goodies to Toshiba to regulators and dentists' delight
Western Digital has completed its FTC-ordered handover of assets to Toshiba in order to buy Hitachi's HDD business Viviti. The wedding of the year was halted when regulators, citing monopoly concerns, demanded WD hand over a bundle of IP, R&D materials and production line gear to Tosh. In exchange, Western Digital will take over Toshiba Storage Device (Thailand), the arm of the company that was devastated in the recent flooding. It's WD's aim to integrate the remaining assets into its own local operations -- you can read the official line in the land of pure imagination below.
Rumored FTC probe could delay Facebook / Instagram deal, Toaster filter will have to wait
If you were hoping that Facebook's buyout of Instagram would wrap up quickly and let you directly integrate your heavily filtered photos into Timeline, you might be disappointed. Citing the ever-present "people familiar with the matter," the FT believes the Federal Trade Commission is orchestrating a competition probe. These kinds of investigations are common for most deals over $66 million -- we suspect the $1 billion Instagram pact qualifies -- but could add six months to a year to Facebook's originally planned spring closure date. The deal is still expected to go through, and you can keep tilt-shifting your photos to death in the meantime; just don't expect those shots to blanket friends' Facebook walls anytime soon.
