Mobile application development continues to be an interesting growth area for entrepreneurs. With the industry a mere four years old, consumers and business users alike continue to seek out and use new apps at a rapid pace. In fact, recent research shows that the use of mobile apps in the U.S. rose nearly 35% this year.
While there are tremendous opportunities in mobile app development and marketing, start-ups entering this field must pay heed to their compliance obligations, particularly in the area of consumer privacy. Mobile app developers have been getting particular attention in California where the state’s attorney general, Kamala Harris, has been warning developers that if they fail to communicate their privacy policies to their end users in a clear and conspicuous manner, they face the possibility of significant fines.
With the expiration of the 30-day warning period and the filing of the first suit, it is critical for all developers of mobile applications to ensure that they are displaying privacy policies if their applications collect personally identifiable information. Significantly, because CalOPPA applies to online services that collect data from consumers residing in California, the impact of this development reaches far beyond California.
This post on Start-up Legal Issues was authored by Jacqueline Klosek.