SlideShare a Scribd company logo
Mini Law Lesson
How the FTC Wants You to
to Fix Your Shopping App
Brian Heidelberger
bheidelb@winston.com
Twitter @briheidelberger
Info @ www.winston.com/bheidelberger
IMPORTANT DISCLAIMER
• I am not your attorney.
• This is not legal advice.
2
What Apps Are Covered?
• Compare prices,
• Collect and redeem deals, or
• Pay for purchases while shopping in
brick-and-mortar stores.
3
What Is FTC
Concerned About?
• Pre-download information describing
how the apps
 Deal with fraudulent or unauthorized
transactions, billing errors, or other
payment-related disputes
• FTC found few providing info
 Handle consumer data
• FTC found info provided was too vague
4
When Offering Payment
Functionality
• Provide pre-download information on
 consumers’ rights and liability limits for unauthorized,
fraudulent, or erroneous transactions
 Federal credit card protections generally do not apply to
purchases involving prepaid, gift, or stored value
accounts
 Consumers should know
• whether they are liable for unauthorized
transactions
• What protections are in place
• What procedures there are for resolving disputes
5
Info on Collecting, Using and
Sharing Data
• Most apps had privacy policies, but …
 Used vague terms
• to “enhance” or “improve” users’ shopping
experiences
 Reserved broad rights
• almost all of the policies then used vague
language that reserved broad rights to share
consumers’ data
 May not be evaluating whether they have a
business need for the data they are collecting
6
Security Practices
• Strong data security promises need to
translate into strong data security
practices
• Must honor any commitments they
make about the security they provide.
7
Follow me on Twitter
@BriHeidelberger
8
More Mini Law Lessons
youtube.com/AdAge.com
&
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9

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How the FTC Wants You to Change Your Shopping App to be Legal

  • 1. Mini Law Lesson How the FTC Wants You to to Fix Your Shopping App Brian Heidelberger bheidelb@winston.com Twitter @briheidelberger Info @ www.winston.com/bheidelberger
  • 2. IMPORTANT DISCLAIMER • I am not your attorney. • This is not legal advice. 2
  • 3. What Apps Are Covered? • Compare prices, • Collect and redeem deals, or • Pay for purchases while shopping in brick-and-mortar stores. 3
  • 4. What Is FTC Concerned About? • Pre-download information describing how the apps  Deal with fraudulent or unauthorized transactions, billing errors, or other payment-related disputes • FTC found few providing info  Handle consumer data • FTC found info provided was too vague 4
  • 5. When Offering Payment Functionality • Provide pre-download information on  consumers’ rights and liability limits for unauthorized, fraudulent, or erroneous transactions  Federal credit card protections generally do not apply to purchases involving prepaid, gift, or stored value accounts  Consumers should know • whether they are liable for unauthorized transactions • What protections are in place • What procedures there are for resolving disputes 5
  • 6. Info on Collecting, Using and Sharing Data • Most apps had privacy policies, but …  Used vague terms • to “enhance” or “improve” users’ shopping experiences  Reserved broad rights • almost all of the policies then used vague language that reserved broad rights to share consumers’ data  May not be evaluating whether they have a business need for the data they are collecting 6
  • 7. Security Practices • Strong data security promises need to translate into strong data security practices • Must honor any commitments they make about the security they provide. 7
  • 8. Follow me on Twitter @BriHeidelberger 8
  • 9. More Mini Law Lessons youtube.com/AdAge.com & youtube.com/BrianHeidelberger 9