FTC Expands Reach on Conspicuousness of Privacy Disclosures in Settlement with Android Flashlight App

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An FTC settlement with a mobile app over its privacy disclosures alleged to be deceptive may seem to be run-of-the-mill. After all, the FTC has been settling cases for years with companies whose data collection and use practices are allegedly not consistent with the representations those companies make in their privacy policies.

But the FTC’s Complaint and Order with Goldenshores Technologies (“Goldenshores”), announced on December 5th, is a particularly noteworthy Section 5 case because the FTC’s theory is that the company’s alleged violation of Section 5 resulted not out of an affirmative representation regarding its app alleged to have been deceptive, but from an alleged material omission, and from an allegation that whatever disclosures there were did not rise to the required level of prominence because they were in the privacy policy and EULA only.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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