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Mobile Marketing Meltdown
1. Mobile Marketing
Meltdown
Privacy Monetization Design Best Practices
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3. Here’s What It’s About
• Privacy -- Privacy by Design: Advocates embedding
privacy considerations at the requirements phase of
development projects
• Monetization -- Including In-App Purchases -- Its
Novelty is Both its Strength and Downfall
A Few Thoughts on Application Design
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4. Why Should You Care
• There have been 3 FTC mobile application related
settlements already announced, others are ongoing
• Several players in the ecosystem have been the target of
called for Congressional investigations
• IN SHORT THE LIABILITY EXPOSURE – add class
actions, and state investigations – IS REALLY
FREAKING HIGH
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6. KEY FTC INVESTIGATION
TAKEAWAYS
• Advertising claims need be truthful. That means both
literally and what your advertising claims implicitly
• Important terms of the app need to be stated clearly and
upfront
• Tune in to privacy. There are a number of privacy laws,
and emerging restrictions on the type of personal data
your app can and should collect from users
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7. THE MAIN TAKEAWAY: There is a
lot of scrutiny of mobile apps. Be
proactive and take reasonable steps to
make sure your mobile apps comply
with the law
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8. Let’s Talk Privacy
The amalgamation of so much behavior rich
information in a single very personal device
opens the possibility of radical innovations in
marketing
Location Information
Access to a Network of
(Consistent Broadcast)
Pre-Qualified Users
(Think Stored Contacts)
Lots of Behavioral
Tid-Bits Personal Financial and
Health Information
1:1 User Corollary
Common SDK’s Create
Emerging Interesting
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9. But There Are Risks
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10. Several Privacy Guidelines Out
There
Future of Privacy Forum Mobile Marketing Association
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11. Its Still About Choice, Consent &
Control
Choice – Collection,
Storage, & Transfer
Consent – Obtain
Control – Utilization
Agreement
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12. You Got To Have a Privacy Policy
• Even if you do not believe you are collecting
or using data that would trigger privacy
concerns
• Provide a link to it in each app store listing, on
your own site. If your app has a settings page
put a privacy policy link there as well
• Make sure that it can easily be read on a
mobile device
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13. Get The Disclosures Rights
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14. You Have to Timely Disclose
Unanticipated Uses
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15. Don’t Forget Security
• Ensure reasonable security measures are in
place
• Encrypt data in transit (SSL / TLS)
• Encrypt sensitive information stored including
for example passwords
• Protect user application data
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16. Good Housekeeping
• Stay within the boundaries of your disclosures – don’t
use or collect data if you haven’t explained the
practice to the user
• Don’t access or collect data unless your app requires
it
• Delete old data
• Provide users with a way to contact you and respond
to their questions and concerns
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17. Use Reputable Partners
Keep in mind that many, if not most, privacy
issues for application developers come from
inserting…SDKs – such as those from
advertising networks and analytics providers –
into your app
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18. Let’s Talk In-App Purchases
There is a value proposition disconnect that is in
part because of the novelty of the platform
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19. Food for Thought
http://bit.ly/sLWOp6
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20. Another Class Action Suit
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21. The Quid Pro Quo
• It’s got to make sense
• Its not all about the “Benjamins”
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22. Get The Disclosures Rights
• Disclose the Existence of In-App Purchase
Functionality
Although this application is free to download and play
certain features functionality, may require an in-app
purchase.
• Avoid confusion: Price points like $.99, $9.99 and
$99.99
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23. Consider Documenting Your
Pricing Strategy
• Calibrate using established revenue models: Think
console gaming and associated marketplaces (i.e. the
Wii)
• Incorporate average user revenue data overtime and
tweak pricing to maintain reasonableness
No this is not a mechanism that limits an apps revenue
potential. Rather we have fixed the per user revenue variable,
the obvious then to increase revenue is to acquire more users.
This then drives better quality into the marketplace and culls
inferior apps over time
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24. Consider Limits
• Daily Spending Caps
• Time Based Purchase Limits
• In-App Purchase Confirmation Alerts
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25. Let’s Talk In-App Monetization
Apple thinks incentivization is a dirty word
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26. Food for Thought
http://on.mash.to/zloUCV
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27. How It Works
Established Apps
Incorporate 3rd
Party SDK’s to
Enable
Monetization App Promotion Services Charge On A Per Unit
Basis For Installs and Split Revenue with App
Developer who installed SDK
New Apps
Promoted
Sometimes with
Intent to Achieve
Top 25 App Store
Ranking
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28. You Cannot Game The System
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29. Thoughts on App Design
A little conservatism in the face of uncertainty
isn’t a bad thing.
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30. These Work in App Design, Privacy
and Monetization
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31. CONTACT ME
HAYDEN CREQUE
p. 320-247-3439
e. hayden@crequelaw.com
Twitter
@haydencreque
Web
www.crequelaw.com
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Editor's Notes
. It’s also important to know with whom you can share that information, and to disclose how your app collects, uses and shares such data lawfully. If your mobile app is designed to collect data from the consumer (whether contact information, geolocational information, or other identifying data), monitor industry guidelines.Failure to take these steps can make a mobile app company and its individual owners the latest FTC target. If you think a settlement with the FTC isn’t too bad, you might want to reconsider. Take note that these FTC settlements will last for 20 years, and closely regulate all future business conduct concerning said mobile app (and potentially other mobile apps and business practices that a company and its owners wish to develop). Violations of an FTC settlement can also result in up to $16,000 per violation which, when calculated, can amount to millions of dollars in civil penalties.
. It’s also important to know with whom you can share that information, and to disclose how your app collects, uses and shares such data lawfully. If your mobile app is designed to collect data from the consumer (whether contact information, geolocational information, or other identifying data), monitor industry guidelines.Failure to take these steps can make a mobile app company and its individual owners the latest FTC target. If you think a settlement with the FTC isn’t too bad, you might want to reconsider. Take note that these FTC settlements will last for 20 years, and closely regulate all future business conduct concerning said mobile app (and potentially other mobile apps and business practices that a company and its owners wish to develop). Violations of an FTC settlement can also result in up to $16,000 per violation which, when calculated, can amount to millions of dollars in civil penalties.
The main takeaway: The FTC is monitoring mobile apps, and you don’t want yours caught in the scrutiny. Be proactive and take reasonable steps to make sure your mobile apps comply with the law.
If your app make use of data in a way that users might not expect you should make clear conspicuous and timely disclosures of that fact.
Sometimes you won’t even know that the organization’s values have been usurped.
If you plug someone else’s code into your application you are on the hook both legall and to users, with regard to the third parties you work with, and the analytics practices they engage in.
Use Good Judgment at All Times – NordstromsDon’t Be Evil -- GoogleBe the Number one or Number two Business in the Industry -- GE
Sometimes you won’t even know that the organization’s values have been usurped.
Sometimes you won’t even know that the organization’s values have been usurped.