Archive for the ‘Tech Regulation’ Category

Mobile App Education Resources for NTIA Stakeholders

Friday, August 24th, 2012

In the discussions at Wednesday’s NTIA multistakeholder meeting, considerable time was spent hearing alternatives to the process outlined by the agency. There were a small number of participants who participated reluctantly, feeling they lacked sufficient technical understanding of the app marketplace to provide a valuable contribution.

As the trade association representing app makers, ACT agrees that stakeholders should have a thorough understanding of the technical issues underlying our marketplace before considering regulatory steps. We are pleased to provide our assistance as app developers, small business owners, and entrepreneurs by opening up the hood to explain the machinery behind the app economy.

When testifying before the House and Senate Commerce and Judiciary Committees, we have prefaced our written testimony with an introduction to the app economy, the technical challenges app developers face, and the efforts we have undertaken to meet consumers’ concerns about privacy. We have also conducted a number of studies and published the data to provide resources for those interested in the app marketplace.

We offer these resources to stakeholders and welcome the opportunity to participate in any discussions or briefings that may provide a better understanding of the thriving app economy. There are also mobile app conferences taking place locally in September at which we would welcome stakeholder visits.

ACT’s mobile app study – Apps Across America (7/18/2012)

“American developers dominate U.S.-based app stores with broad representation from throughout the country. The app industry is not simply a Silicon Valley phenomenon, with nearly 60 percent of top app development companies formed outside of California.”

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Reply Comments Submitted to the FTC Review of the Children’s Online Privacy Protection Act (12/23/2011)

“Most app development is done by a small number of people utilizing collections of common code. In some ways, modern development practices are similar to building with Legos. Individual pieces may come in the form of “Software Development Kits” (SDK) and huge object code libraries found in common developer tools. But just like Legos, the developer is responsible for putting the pieces together in a unique and innovative way. This small-scale development is a core feature of app development and allows tiny one-man shops to develop software that rivals huge mega-corporations. However, due to their small size, app developers often lack the ability to negotiate with the large companies whose tools or SDKs they must use, instead facing a take-it or leave-it contract.”

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ACT Response to Dept. of Commerce Request for Comment on NTIA Multistakeholder Process (4/2/2012)

“The biggest hurdle to implementing industry-wide privacy standards is developer education. There are over 200,000 app developers in the United States. App makers want to do the right thing on privacy, but often don’t know whether their app creates privacy concerns or what they need to do to be rules compliant. As most small business app developers are making customer-facing software for the first time, they are also addressing privacy issues for the first time. Matters typically handled by a legal department or chief privacy officer in a larger company are now most often handled by a small business owner.”

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Prepared Testimony Before House Commerce Committee (9/2012)

“Educators are also exploring the benefits that app‐powered tablet devices can have in the classroom. Just a few months ago, the state of Alabama passed legislation that would give every student a tablet to use for books and class work. This will provide every student access to advanced learning tools that touchscreen devices provide, while also reducing the weight of our children’s backpacks. The dramatic success certain apps have had providing individualized teaching and assistance to special needs children cannot be understated.”

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ACT Fly-In

Wednesday, May 9th, 2012

The Association for Competitive Technology welcomed forty of our app developer members to Washington, DC to meet with the White House, Congress, and the Federal Trade Commission. Our message is simple. The pace of innovation that is taking place right now in the app economy is remarkable. Washington should avoid taking steps that would unnecessarily hinder the continued growth of our industry.

ACT at the White House

Mobile app developers are part of a brand new marketplace that didn’t even exist four years ago. It is now a $20 billion industry. And the mobile app economy is primarily comprised of small businesses. Even the most successful apps are nimble small companies. The photo app Instagram that was recently acquired by Facebook for $1 billion has only twelve employees.

There are many other Instagrams out there waiting to succeed, but in order for the app economy to continue to grow we need more spectrum to meet the rising demand for mobile connectivity. Additionally, developers need make sure their apps aren’t stolen or copied in foreign app stores. And the big issue that is on everyone’s mind is privacy. We need to make sure we get privacy right so that users are secure in sharing what they are comfortable with in a way that doesn’t undermine the internet economy.

The administration is pursuing a Bill-of-Rights-style approach to privacy. As the association created by developers for developers, ACT ensures that the voices of app makers continue to be a part of this discussion. We are pleased that thirty of our Fly-In members were invited to the White House to meet with the Deputy Chief Technology Officer. In our meeting, he expressed the administration’s commitment to pursue a multistakeholder process to address privacy that requires the participation of the small business app developer community. As the administration tackles the issue of privacy, we pledge to work together to find solutions that protect consumer privacy and allow the app marketplace to grow.

These are issues that the federal government is facing. Having app developers come to Washington to educate lawmakers and regulators about the app industry can help them make the right decisions about our future. Hopefully, an informed Congress will help our developer members continue to flourish.

Privacy Boot Camp for Kids App Developers

Tuesday, May 1st, 2012

On Friday we kicked off ACT’s app privacy events with a special Privacy boot camp for kids apps.  In cooperation with Moms with Apps and Silicon Valley Apps for Kids, the event was held at the offices of Creativity, Inc., an innovative company that builds the software that goes into toys. During four intense hours of discussion, workshops, and learning, participants learned the basics of privacy law and how to treat the data their apps collect about customers with the highest respect and safety.

We were honored to have California Deputy Attorney General Alexandra Robert Gordon kick off the event. In her opening remarks, she shared how her office had worked with the major app platform providers (Apple, Microsoft, Google, RIM, and HP) to move toward a privacy infrastructure for each store that would ensure every app has a privacy policy for customers to review.  This historic agreement helps safeguard the private data of consumers while making life easier for app developers. We are thankful for her efforts and we look forward to continuing to work together in crafting policy that benefits all parties involved.

Privacy attorney Christina Gagnier gave an overview of the current lay of the land and shared how the Children’s Online Privacy Protection Act applies to mobile apps. This session sparked many questions from the audience about practical issues. It’s clear that App developers care about privacy and want to make sure their apps are both compliant with all applicable laws and meet the expectations of parents.

Jason Beatty of PrivacyChoice walked us through their Privacy Policy Maker to help app developers build a comprehensive and easy to understand privacy policy . This walk through covered all the decisions and options involved in building a privacy policy, including your app’s use of location awareness, analytics, and ad networks. Jason also shared the world premier of a new feature – the ability to automatically create graphical privacy disclosures based on the work of Mom’s With Apps. The feature is fully integrated in the Policy Maker and help parents quickly understand how an app will work.

ACT’s Morgan Reed shared the tremendous opportunities that become available when you build apps that include privacy by design and Mike Sax of Sax.net shared his personal experiences as an app developer and a number of best practices for building apps that take privacy seriously.

Participants walked away with a clear understanding of the law and a set of tools to implement good privacy practices. Now they can go back to focus on what they do best: building awesome apps that engage and delight their customers. Our next app privacy event will be held in Seattle as part of the Privacy, Identity, and Innovation Conference on May 14, 2012.

To be continued.

ACT Kicks Off Series of App Developer Privacy Events

Tuesday, April 24th, 2012

This week, ACT kicks off a series of coast privacy education events for app developers. We will feature at a number of privacy conferences and host boot camps to help app makers identify best practices to meet consumers’ privacy expectations.

On Wednesday, ACT chairman and iOS developer, Mike Sax, will speak in Palo Alto at the App Developer Summit on location privacy. The same day in Los Angeles, I will appear at the Digital Kids Conference alongside California Special Assistant Attorney General for Technology, Travis LeBlanc, and FTC Consumer Protection Bureau Counsel, Kenneth Abbe. Having testified before Congress five times over the past year on privacy while engaging the White House and FTC on this issue, ACT is uniquely qualified to inform the app developer community about the government’s intention to regulate this space.

As an association created by app developers for app developers, we travel around the country to share what we have learned about the federal government’s plans to regulate our industry. Importantly, we offer a plan of action in response. Overwhelmingly, app developers want to do the right thing on user privacy, and they are undertaking efforts to improve transparency and inform users about the use of their data. At our privacy boot camp events in Silicon Valley and Seattle, we will work directly with developers to create privacy policies, implement privacy by design, and provide guidance on existing regulations.

We are also bringing app developers from across the country to Washington, DC for over one hundred Congressional meetings to caution lawmakers about the negative impact that hasty regulatory action could have in the app industry. This marketplace is less than four years old and we are still discovering new business models. Attempts to restrict app makers would likely involve unintended consequences that could disrupt the growth of the app ecosystem, one of the fastest growing segments of our economy.

ACT will feature at the following events and will conduct its Washington, DC developer Fly-In May 6-8.

April 25: Digital Kids Conference (Los Angeles)
April 25: Application Developers Summit (Palo Alto)
April 27: Silicon Valley Apps for Kids: Hands On Privacy Workshop (Silicon Valley)
May 15-16: Privacy Identity Innovation Conference (Seattle)

DOJ Antitrust Action Against Apple to Harm Small Business App Developer Publishers

Wednesday, April 11th, 2012

iBooks

Many of our small business members are concerned by today’s Department of Justice antitrust action against Apple and book publishers for purported e-book price fixing. While it is curious that the government would consider an antitrust case against a competitor with a market share far below dominance, it is also alarming that the actions it takes may have a profoundly negative impact on smaller retailers.

The wrong result from DOJ action could harm small businesses on the iTunes store significantly. The convergence of app makers and publishers at iTunes and the App Store has allowed for the distribution of innovative interactive content that can only succeed when its creators have flexibility in choosing how to bring their works to market. Unfortunately, the Justice Department’s latest step reprises the old story of the small developer/publisher becoming the collateral damage in the battle of the giants. Author Scott Turow hit the nail on the head when he said, “our government may be on the verge of killing real competition in order to save the appearance of competition.”

ACT Mobile Privacy Panel at SXSW

Monday, March 12th, 2012

ACT’s Jonathan Godfrey is moderating a panel today at the Austin tech convention, South by Southwest. Selected from thousands of applicants, the panel “Can Washington Make Your App Illegal” addresses widespread concern about potential future regulation of the app industry. Godfrey is joined by Mike Sax of Asigo and Ahmed Siddiqui of Go Go Mongo and Startup Week. A number of presentations in Austin have focused on the unintended negative impact that government intervention may have on the app industry.

Pose your questions to the panelists through twitter using the hashtag, #sxillegalapp

ACT Applauds Comprehensive Administration Privacy Proposal

Thursday, February 23rd, 2012

ACT applauds the Administration’s efforts to address consumer privacy and its inclusion of the mobile apps community in the multi-stakeholder process. We were particularly pleased to note that the words “internet” and “online” do not appear in the proposed enumerated Bill of Rights. We say this not because we think the internet should be exempt, but because there must be a universal approach to privacy. While much attention recently has been focused on internet privacy, we are pleased that the Administration recognizes that privacy standards must apply equally to both the offline and online worlds. The collection and sharing of consumer data is not an internet-only phenomenon. We look forward to continuing our work with the Administration and Congress, as well as our fellow stakeholders, as this process unfolds.

On Today’s Diane Rehm Show Talking Online Privacy

Monday, February 20th, 2012

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

The FTC’s Child Apps Study: How ACT is Engaged in Promoting Transparency

Thursday, February 16th, 2012

Moms with Apps

Today’s survey by the FTC raised the same concerns that ACT has shared in our Congressional testimony on mobile app privacy. Many children’s education app developers are unaware of existing privacy regulations and how they may be interpreted to prevent seemingly innocuous features. ACT has traveled across the country to meet with app developer groups like Moms with Apps to explain how privacy laws apply to them and to suggest best practices for protecting child privacy online. We have found that the overwhelming majority of those making 99 cent apps for kids do so to help their own children learn and with a desire to help others learn. There is certainly a need to protect children’s privacy online and a broader education effort is necessary to inform well-meaning developers of the precautions they should take. ACT is committed to working with the FTC and our 4,000 members to expand these education efforts. We should ensure that the parents buying these apps for their children can be as confident in the safety of their privacy as are the parents who made the apps.

While 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.

ACT Member Group Moms with Apps Featured in Wall Street Journal

Wednesday, February 15th, 2012

Moms with Apps

ACT 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.