FTC case against Yelp shows that COPPA isn’t just for kids’ sites

Yelp is an online service where people can read and create reviews about businesses and connect with others online and at local events. Many users post profiles with photos and detailed information about themselves. Yelp's "check in" feature lets users announce their presence at a certain business. Yelp introduced its apps in 2009 so people can access those services from their mobile devices. Before that, people had to register through the company’s website, which had a screening mechanism that prohibited users under 13 from signing up. Why that age? Because COPPA applies to operators of general audience websites or online services – including apps – with actual knowledge they’re collecting, using, or disclosing personal information from kids under 13. (Of course, the Children’s Online Privacy Protection Act (COPPA) also applies to kid-directed sites and services without regard to that “actual knowledge” standard.

The FTC’s just-announced settlement with TinyCo deals with that aspect of the Rule.) The problem with Yelp apps was how that age-screening mechanism worked – or more accurately, didn’t work. People who registered on the app were asked for a date of birth, but regardless of what they entered, the Yelp app allowed them to sign up and gave them full access to all features.