Shedding light on what your app is up to: 3 lessons for developers

Goldenshores Technologies’ “Brightest Flashlight Free” is an incredibly popular Android app downloaded by tens of millions of consumers. But did those people know that when they used the app, it would transmit their precise location and unique device identifier to third parties, including ad networks? According to a lawsuit filed by the Federal Trade Commission, Goldenshores didn’t give people the straight story about how their information would be used and then compounded the problem by making them think they could exercise a choice about it -- a “choice” that proved ineffective. The lawsuit charges that by failing to adequately disclose those material facts to consumers, Goldenshores and Erik M. Geidl violated the FTC Act.

The terms of the proposed settlement apply just to Goldenshores, but what can app developers take from the case?

1. Geolocation, geolocation, geolocation. If your app collects and shares sensitive information, it’s smart to explain what’s going on up front, using language consumers will understand. What's more, get people’s express approval before going forward.
2. Button, button. Who’s got the button? By featuring ACCEPT or REFUSE or similar buttons, you’re conveying to consumers they have a choice -- and that you’ll abide by it.
3. The best things in life are free. Many app developers adopt a business model that allows for the distribution of their apps for free. That can be great for consumers, of course, but it doesn’t change app developers' legal obligation to abide by well-established truth-in-advertising and privacy principles.