| PaperKarma Platforms: iOS, WP, Android Now that just about everything can be done online or through an app, I receive very little “real” paper mail—98% of what ends up in my physical mailbox is junk. And unsubscribing can be arduous and time-consuming. But not now. Meet PaperKarma. Download the app, enter some relevant information about where you receive mail, and from that point on, just take a photo of the offending junk mail and PaperKarma will get you off of the mailing list. Price: Free |
App of the Day
February 21st, 2012 | Melissa LeeOn Today’s Diane Rehm Show Talking Online Privacy
February 20th, 2012 | Morgan Reed
I appeared on NPR’s Diane Rehm Show this morning to participate in an hourlong segment entitled, New Concerns Over Online Privacy. Our panel in the studio included Washington Post Tech Reporter Cecilia Kang and EPIC President Marc Rotenberg, and we were joined on the phone by Congressman Ed Markey, Co-Chair of the Congressional Privacy Caucus, and Stanford researcher, Jonathan Mayer.
I brought the perspective of small business app developers who want to do the right thing and are taking steps to learn about privacy laws and how to comply. I also highlighted the success of the online marketplace in the U.S. having borrowed a page from the TV playbook providing free or low-cost content funded through advertising. However, despite all the positive stories I had to share about the responsible steps the app industry is taking to protect online privacy, our host and every one of the panelists could not move beyond the topic of Google and the negative impact it is having on the privacy discussion.
Congressman Markey criticized the company for a pattern of privacy violations, while the others had choice words for the search giant’s latest controversies – its new privacy policy and having been exposed overriding the anti-tracking preferences of Safari (Apple) browser users. It is understandable that my fellow panelists would focus their attention on these issues given the amount of attention they have attracted, but it underscores the problem faced by small business technology firms. When bad actors continually ignore the law and violate consumer privacy, government feels compelled to step in and impose regulations that are difficult for the entire industry, not merely the lawbreakers.
Marc Rotenberg made the point that the latest transgression is in violation of the FTC’s Google consent decree which included the Commission’s biggest ever privacy penalty. Considerable fines may be levied for violations of the decree, but these penalties have yet to stop Google. The company was fined $500,000,000 last fall for facilitating the sale of illegal and counterfeit prescription drugs in the U.S. But even today, if you type “Vicodin without” on the Google search page it will autofill suggesting “Vicodin without prescriptions” leading to sites selling potentially dangerous counterfeit drugs.
Clearly, the FTC has yet to find where the pain point is for Google. We strongly urge the Commission not to conclude that the only way to fix one company’s problem is to punish the entire industry. Let’s address this problem at its root and avoid the collateral damage that could harm small business innovators who are acting responsibly.
Here is a link to the hour long show, and below are some clips of my thoughts.
Transparency Key for App Developers
Advertising Has Helped Industry Grow
Google’s Bad Behavior Has Led to FTC Action
Unfortunately This is a Pattern of Bad Behavior
Google’s Willful Privacy Violations Threaten Entire Industry
February 17th, 2012 | Jonathan ZuckThe Wall Street Journal published a story today revealing that Google has undermined the tracking restrictions on the Safari browser in order to conduct browsing surveillance on unsuspecting users. A company the size of Google overriding browsers’ Do Not Track functions has very troubling implications for the internet community. Conducting surveillance on internet and mobile phone users that have expressly chosen a browser that disables tracking is particularly nefarious. While Google wasn’t alone in this practice, they were alone among technology companies and that is a big problem.
Undermining consumer privacy protections like this encourages lawmakers and regulators to pursue regulatory solutions that can negatively impact the entire industry. Given that Google has a track record of violating user privacy, from its wi-fi surveillance to the Buzz Settlement to the controversy over its recent privacy policy changes, the search giant’s latest transgression could have profound implications for everyone in the industry, particularly small business developers.
The internet community understands we need to do better to protect consumer privacy. As the mobile apps trade association, we’re working with app developers, mostly small businesses, who are unfamiliar with the intricacies of privacy rules, but want to learn so they can comply. Google knows the rules and simply chose not to follow them in this case. The ongoing irony is that these missteps, intentional or otherwise, invite regulatory action that doesn’t hurt Google, but makes it harder for small business competitors to survive.
Open and Fair Spectrum Auctions in Payroll Tax Deal May Benefit App Developers
February 16th, 2012 | Jonathan ZuckThankfully, an agreement has been reached on the payroll tax cut legislation that provides for open and fair spectrum auctions allowing anyone to bid. App developers have long advocated for increased spectrum as wireless networks are approaching saturation. Our apps need connectivity to run and our customers want to access them everywhere. Improved unlicensed spectrum is important, yet we also need more licensed spectrum to provide users the ubiquitous access they demand. We are happy that the competing factions in Congress finally came to an agreement, but it will only be judged a success by app developers if it results in more licensed and unlicensed spectrum.
The FTC’s Child Apps Study: How ACT is Engaged in Promoting Transparency
February 16th, 2012 | Morgan ReedWhile this is a report on app disclosure policies, and does not examine whether any consumer information is being used, it does highlight areas for improvement that ACT has long endorsed. Primarily, app developers must strive for transparency to let users know whether and how they use their information. While many children’s app developers don’t collect information or use ads, we believe that conveying this information in an easy to read privacy policy helps consumers and assures them of the safety of their data. We also believe that while the overwhelming majority of children’s app makers are well-intentioned, if there are those who operate with malice outside the law, we fully endorse regulatory action by the FTC. As it has shown in the Playdom and Broken Thumbs Apps, the Commission is well-empowered to bring enforcement actions against transgressors large and small.
Apple’s Response to Address Book Privacy Concerns Was the Right Move
February 15th, 2012 | Morgan ReedACT is pleased that Apple has taken the appropriate steps to ensure that users have full control over their contact lists and address book. What is most important to app developers is the customers’ confidence that the apps they use won’t mislead them or abuse their trust. We depend on the trust of our users and the whole app industry suffers when bad actors are allowed to misuse consumers’ private information.
ACT Member Group Moms with Apps Featured in Wall Street Journal
February 15th, 2012 | Jonathan GodfreyACT member group Moms with Apps was profiled by the Wall Street Journal this afternoon for their work on kids education apps. The Journal also highlighted the tremendous organizational work by Lorraine Akemann who heads the group and works to keep her members informed about best practices. Lorraine used the article to tell the story about the efforts of communities like hers to self-police and educate. Moms with Apps members have come to DC to educate Congress about the app industry and their efforts to make their membership aware of online privacy regulations and how to ensure compliance.
App of the Day
February 10th, 2012 | Jonathan Godfrey| Donkey.bas Platforms: iOS In 1981, Bill Gates created the first PC video game with collaborator Neil Konzen on a prototype IBM PC. It’s a simple game requiring the driver to switch lanes to avoid hitting a donkey. Working out of a hundred degree closet, the two wrote this on BASIC and it shipped with early versions of MS-DOS. XVision founder Johnny Ixe restored this classic to the iPhone where it sells for 99 cents. [h/t Technologizer, GeekWire] Price: $0.99 |
App of the Day
February 9th, 2012 | Sara Kloek| A Valentine’s Coloring Book Platforms: iOS As Valentine’s Day approaches, we’re seeing ads for chocolates, flowers, and diamonds. In many schools, kids exchange the pre-made Valentine’s Day cards with a piece of candy attached. Why not let your kids get a little creative this year and download Wiener Family Studios latest holiday-themed app – A Valentine’s Coloring Book. It’s geared towards kids aged 4-8 but would be great for kids just learning their colors and older kids who are motivated to find the hidden extras within the game. Price: $1.99 |
What the App Jobs Data Really Means and Where Future Revenues Can Be Found
February 7th, 2012 | Morgan ReedOur friends at TechNet and Rey Ramsey have published some interesting findings on the app economy. In a newly released study, TechNet found that the app marketplace has created 466,000 new jobs. TechNet came by this figure through a comprehensive analysis of want ads for app developers combined with a job creation multiplier to include non-developer hires supporting app businesses.
This figure matches well with data our research has generated. In ACT testimony before Capitol Hill earlier in 2011, we identified 600,000 jobs resulting from the emergence of the app marketplace. The rapid growth of the industry has meant tremendous opportunities for software developers. Appnation reports that the app market this past year generated $20 billion. I travel to developer conferences across the country, and at every one I consistently hear the words, “we’re hiring.” A lot of people travel to these events expressly to find developers to employ.
Since more than 80% of the top apps are made by small businesses, our membership of small business app developers gives us a granular view of the industry. While our study arrived at 600,000 jobs, we identified them as “created or supplemented” by the app marketplace. We came to this decision because we found so many developers were netting only about 30k a year, not enough to quit the day job, but enough to help with the mortgage, or save for college.
Whether supplementary or something more, the incomes earned by U.S. app developers have yet to fully capitalize on foreign markets. That time may be coming soon. Apple has just recently begun accepting payments using the domestic yuan in the Chinese App Store. With 961,700,000 mobile users, and more smartphones than the U.S., China will supply the next big pool of customers for app makers. Other BRIC countries will soon follow.
This is still a nascent industry, and the earning potential of many app makers is still limited by marketing challenges, low ad revenues, and piracy. Providing developers a curated store in China to access its rapidly expanding market means that U.S. app makers finally have a chance to get paid directly for their programs. Something most small business software developers have yet to experience. This could provide the opportunity for a lot of developers to move from “supplementing” their income to making apps their job. When that happens it will make the app jobs data a lot more meaningful.





















