Online advertising platform settles allegations that it collected personal information from children – Privacy

United States: Online advertising platform settles allegations that it collected personal information from children

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  • the FTC reached an agreement with online advertising platform OpenX Technologies, Inc. to resolve allegations that OpenX collected personal information from children under 13 without parental consent, in violation of the FTC Act and FTC Children’s Online Privacy Protection Act.
  • the complaint alleged, among other things, that OpenX, which operates a real-time auction platform for the sale of advertising space on websites and applications, collected location data and personal information about users of applications intended for minors without parental consent, and transmitted this information to third parties who used the information to target their advertising. Additionally, the complaint alleges that OpenX continued to collect geolocation information despite user refusals.
  • Under the terms of the stipulated order, OpenX is liable to a civil penalty of $7.5 million, including $5 million suspended. In addition, OpenX is required to delete ad request data collected to target ads and implement a comprehensive COPPA-compliant privacy program, which includes periodic review of apps to identify apps intended for minors that should be banned from its ad exchange.

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