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    Before the

    FEDERAL TRADE COMMISSION

    Washington, DC 20580

    In the Matter of

    Request for Investigation of Nickelodeons

    and PlayFirsts Mobile ApplicationSpongeBob Diner Dash Mobile Application

    ))

    )

    )

    )

    COMPLAINT AND REQUEST FOR INVESTIGATION

    Submitted by

    Center for Digital Democracy

    Of Counsel:

    Jordan BlumenthalJessica Wang

    Georgetown Law Students

    December 17, 2012

    Angela J. CampbellLaura M. Moy

    Institute for Public RepresentationGeorgetown University Law Center

    600 New Jersey Avenue, NWSuite 312

    Washington, DC 20001(202) 662-9535

    Counsel for Center for Digital Democracy

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    Table of Contents

    I. Background ....................................................................................................................1

    A. Nickelodeon .............................................................................................................2

    B. PlayFirst ...................................................................................................................3

    C. SpongeBob Diner Dash............................................................................................5

    D. Downloading SpongeBob Diner Dash.....................................................................7

    II. Nickelodeon and PlayFirst Make False Representations in their PrivacyStatements for SpongeBob Diner Dash .........................................................................9

    III. Nickelodeon and PlayFirst Fail to Comply with the Childrens Online PrivacyProtection Act ..............................................................................................................11

    A. SpongeBob Diner Dash Is Directed to Children Under the Age of 13..................11

    B. Nickelodeon and PlayFirst Collect Several Types of Personal Informationfrom Children.........................................................................................................14

    1. First and Last Name....................................................................................... 15

    2. Email Address................................................................................................ 16

    3. Other Online Contact Information................................................................. 16

    C. Nickelodeon and PlayFirst Fail to Comply with COPPAs NoticeRequirement...........................................................................................................20

    D. Nickelodeon and PlayFirst Fail to Comply with COPPAs Requirement that

    it Obtain Verifiable Parental Consent Before Collecting PersonalInformation from a Child.......................................................................................23

    IV. Conclusion ...................................................................................................................23

    Appendix A: Nickelodeon and PlayFirst Press Release ................................................. A-1

    Appendix B: SpongeBob Diner Dash Page in Apple App Store.................................... A-3

    Appendix C: Nickelodeon Group Privacy Policy........................................................... A-5

    Appendix D: PlayFirst, Inc. Privacy Policy.................................................................. A-11

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    1

    Before the

    FEDERAL TRADE COMMISSION

    Washington, DC 20580

    In the Matter of

    Request for Investigation of Nickelodeonsand PlayFirsts SpongeBob Diner Dash

    Mobile Application

    )

    ))

    )

    )

    The Center for Digital Democracy (CDD), by its attorneys, the Institute for

    Public Representation (IPR), asks the Federal Trade Commission (FTC) to

    investigate and bring an action against Nickelodeon and PlayFirst for deceptive

    marketing of the SpongeBob Diner Dash game and for violating the Childrens Online

    Privacy Protection Act (COPPA). Nickelodeon and PlayFirst represent that SpongeBob

    Diner Dash collects personal data from users in accordance with applicable law, such as

    COPPA, when in fact the app neither provides the type of notice required by COPPA,

    nor makes any attempt to obtain prior, verifiable parental consent required by COPPA.

    I. BackgroundWhenNickelodeon launched SpongeBob Diner Dash in May 2012, the press

    release announced that Nickelodeon, the number-one entertainment brand for kids, has

    joined forces with PlayFirst, the leading full-service publisher of casual games, to launch

    a new, downloadable SpongeBob SquarePants(TM) Diner Dash(TM) game. Paul

    Jelinek, vice president, Digital Media Products, Nickelodeon Networks, stated that

    Joining one of the top properties for kidsSpongeBob SquarePantswith one of the

    top casual games in the marketDiner Dashis a significant step in the expansion of

    Nickelodeon's casual gaming business. He added that PlayFirst has demonstrated that

    they understand how to tap the exploding mass market interest in interactive

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    entertainment. This launch will continue to grow the kids demographic for casual

    downloadable games.1 As of October 20, 2012, SpongeBob Diner Dash had been

    downloaded 10 million times.2

    A. NickelodeonNickelodeon is the leading cable network for children. It reaches around 100

    million households in the United States.3 Nickelodeon is part of MTV Networks, which is

    a subsidiary of Viacom Inc.4 Viacom is a media conglomerate with interests in cable and

    satellite television, as well as movie production and distribution, and online and mobile

    platforms.5 In 2012, Viacom reported revenues of $13.89 billion for the most recent fiscal

    year.6

    Nickelodeon is Viacoms most lucrative cable channel.7 It is home to popular

    childrens programs, including SpongeBob SquarePants, Dora the Explorer, and iCarly.8

    1A copy of this press release is included at Appendix A.

    2SpongeBob Diner Dash Reaches 10 Million Downloads, PlayFirst,http://blog.playfirst.com/2012/10/spongebob-diner-dash-reaches-10-million-downloads/.3Nickelodeon Inc. Company Information, Hoovers, http://www.hoovers.com/company-information/cs/company-profile.Nickelodeon_Inc.717f2165fbbd50b4.html.4 Nickelodeon is a part of MTV Networks as well other cable networks such as BET,Comedy Central, CMT, and VH1.MTV Networks, Viacom,http://www.viacom.com/ourbrands/medianetworks/mtvnetworks/pages/default.aspx;Nickelodeon Inc. Company Profile, Yahoo Finance,http://biz.yahoo.com/ic/117/117074.html.5Business Summary, Yahoo Finance, http://finance.yahoo.com/q/pr?s=VIA+Profile.6 Amy Chozick, Viacom Profit Increases, But Movie Division Hurts Revenue, N.Y.

    Times Media Decoder Blog (Nov. 15, 2012),http://mediadecoder.blogs.nytimes.com/2012/11/15/viacom-profit-increases-but-movie-division-hurts-revenues/.7 Amy Chozick, The Man Who Would Be Redstone, N.Y. Times (Sept. 22, 2012),http://www.nytimes.com/2012/09/23/business/media/philippe-dauman-the-man-who-would-be-redstone.html?ref=viacominc.8Nickelodeon, nick.com.

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    In addition to its childrens cable channels, Nickelodeon utilizes its popular characters to

    reach children through consumer products, online, recreation, books, and feature

    films.9

    Nickelodeon has greatly expanded placement of its characters and franchises in

    applications in an effort to reach children through mobile platforms.10

    B. PlayFirstPlayFirst was incorporated in 2004 and is headquartered in San Francisco.

    11

    PlayFirst specializes in casual games, mobile application games that appeal to broad

    audiences and can be played for short periods of time.12

    PlayFirst advertises its games as

    those that can be played whether youre in line at the store, on your lunch break or

    lounging at home.13

    9Nickelodeon, Viacom,

    http://www.viacom.com/ourbrands/medianetworks/mtvnetworks/Pages/nickelodeon.aspx.

    SpongeBob is used to promote unhealthy foods like imitation fruit snacks, Popsicles,PEZ candy, Cheese Nips crackers, and Kraft Macaroni & Cheese. Nickelodeon,

    NickToons, and Nick Jr. recently have advertised unhealthy foods like Cocoa Puffs, Air

    Heads candies, Chuck E. Cheese's, and Fruit Roll-Ups. Nickelodeon Knocked forPitching Junk Food to Kids, Center for Science in the Public Interest, (Dec. 3, 2012),http://cspinet.org/new/201212031.html.10

    Tricia Duryee,Nickelodeons Mobile Plans Include 20 New Apps In 2010, paidContent

    (Jan 21, 2010), http://paidcontent.org/2010/01/21/419-nickelodeons-mobile-plans-include-20-new-apps-in-2010/; Andrii Degeler,Nickelodeon Brings SpongeBob to

    Windows 8 With Its New App, The Next Web (Nov. 19 2012),http://thenextweb.com/insider/2012/11/19/nickelodeon-releases-app-for-windows-8/.11

    Company Overview of PlayFirst, Inc., Bloomberg Businessweek,http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=11852

    266.12Frequently Asked Questions, Casual Games Association,http://www.casualgamesassociation.org/press.php#casualgames.13

    At PlayFirst, we believe you can have fun anywhere, any time and at any age. Thats

    why were committed to creating mobile games for everyone to enjoy, including the fan-favorite DASH and Stars series of games like Diner Dash, SpongeBob Diner Dash

    and Mall Stars. Whether youre in line at the store, on your lunch break or lounging athome, you only need a minute to dive into a PlayFirst gamebut youll find a lifetime of

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    PlayFirst is a leader in mobile application games that can be played on Apple, and

    also serves Android devices.14

    PlayFirst games are played by tens of millions of fans

    worldwide, and PlayFirst has about eight million monthly active users.15

    PlayFirst

    distributes the original Diner Dash game, which has been described as a character-

    driven strategy/time management game, and one of the top-selling downloadable titles of

    all time.16

    It also distributes many different variations including DinerTown Zoo,

    DinerTown Pets, and Hotel Transylvania Dash.17

    Most of PlayFirst games are freemium games. Freemium is a business model

    that provides a game to players free of charge, but charges a premium fee for special

    features, powers, or content.18

    According to the game industry trade magazine

    Gamesauce, [w]ith PlayFirst, the monetization framework is conceived from the very

    entertainment. PlayFirst games are played by tens of millions of fans worldwide, andwere just getting started.About Us, PlayFirst, http://www.playfirst.com/about.14

    Available on the Android platform exclusively on Kindle Fire. Jason Ankeny,PlayFirst serves up Diner Dash for Android as Kindle Fire exclusive, Fierce Developer

    (Nov. 19, 2012), http://www.fiercedeveloper.com/story/playfirst-serves-diner-dash-android-kindle-fire-exclusive/2012-11-18; PlayFirst is listed as one of the largest

    publishers of online casual games by the Casual Games Association.Frequently AskedQuestions, Casual Games Association,

    http://www.casualgamesassociation.org/press.php#casualgames.15Id.; Kathleen De Vere,After PC Downloads and Social Fail, PlayFirst Sees ItsFortunes Rise Again On Mobile, Inside Mobile Apps (Jun. 7, 2012),

    http://www.insidemobileapps.com/2012/06/07/with-a-pivot-to-mobile-playfirst-sees-its-fortunes-rise-again/.16

    Brian Anthony Thorton, Stellar Stories - With Marco Demiroz of PlayFirst,Gamesauce (Nov. 2, 2012), http://gamesauce.org/news/2012/11/02/stellar-stories-with-marco-demiroz-of-playfirst/.17All Games, PlayFirst, http://www.playfirst.com/all_games.18

    Justin Davis, The Dark Future of Freemium Games, and How We Can Avoid It, IGN(July 20, 2012), http://www.ign.com/articles/2012/07/20/the-dark-future-of-freemium-

    games-and-how-we-can-avoid-it.

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    beginning as an integral part of the design process. That said, their primary focus is to

    ensure that the game is a fun and addicting experience.19

    In a presentation entitled Mobile Game Monetization: Separating Myth From

    Realilty, at the 2012 Casual Connect conference in Seattle, PlayFirst President and CEO

    Marco DeMiroz explained how the PlayFirst economic model works.20 PlayFirst

    conceives of game players as falling into three categories: 1) minnows are new players

    who have made 1-2 in-app purchases; 2) dolphins have been playing an average of 4-6

    months and made 8 or more purchases; and 3) whales have been playing a long time

    and made 16 plus purchases. Whales are the most valuable because the dollar value of

    their in-app purchases is 43 times higher than the purchases of minnows. DeMiroz also

    explained that PlayFirst conducts research to determine how game players behave. It uses

    this research to target different messages and content to different users with the goal of

    migrating players from the minnow category to whales.

    C. SpongeBob Diner DashSpongeBob Diner Dash combines the popular Diner Dash game format with

    characters and themes from the highly successful Nickelodeon childrens program

    SpongeBob SquarePants. The objective of the game is for children to help SpongeBob

    quickly take orders, serve food, provide the bill to customers, and clear dirty dishes so

    19 Brian Anthony Thorton, Stellar Stories - With Marco Demiroz of PlayFirst,Gamesauce (Nov. 2, 2012), http://gamesauce.org/news/2012/11/02/stellar-stories-with-marco-demiroz-of-playfirst/.20

    A video of his presentation is available at

    http://gamesauce.org/news/2012/11/02/stellar-stories-with-marco-demiroz-of-playfirst/and at http://casualconnect.org/lectures/mobile/mobile-game-monetization. The

    discussion of the economic model starts approximately 14 minutes into the video.

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    D. Downloading SpongeBob Diner DashSpongeBob Diner Dash may be downloaded from the Apple App store.

    22The

    game is also featured on the PlayFirst website.23 In the Apple App store, SpongeBob

    Diner Dash is featured in the kids games section, as shown in Figure 2. It is rated for

    ages 4+.

    Figure 2

    22SpongeBob Diner Dash, iTunes, https://itunes.apple.com/us/app/spongebob-diner-dash/id33357809523

    SpongeBob Diner Dash, PlayFirst, http://www.playfirst.com/game/spongebob-diner-

    dash.

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    The Apple App store describes the game as follows: PlayFirst and Nickelodeon team up

    to bring you the dish-flipping fun of Diner Dash with a super awesome SpongeBob

    twist! Clicking to read more brings up additional information including that

    SpongeBob Diner Dash collects personal user data as well as non-personaluser data (including aggregated data), connects with 3rd party social

    media applications, allows communication with other app users, and/oroffers in-app purchases. User data collection is in accordance with

    applicable law, such as COPPA. User data may be used, for example, torespond to user requests; enable users to take advantage of certain features

    and services; personalize content and advertising; and manage andimprove Nickelodeons services.

    24

    It refers to the Nickelodeon Group Privacy Policy for more information.25

    The description of SpongeBob Diner Dash on the PlayFirst website, as shown in

    Figure 3, does not disclose its information collection practices. It does have a small

    privacy link at the bottom of the screen that takes one to the general PlayFirst, Inc.

    Online Privacy Policy. This policy states that We do not knowingly collect personal

    information from children under 13.26

    24See Appendix B.

    25See Appendix C.

    26See Appendix D.

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    Figure 3

    II. Nickelodeon and PlayFirst Make False Representations in their PrivacyStatements for SpongeBob Diner Dash

    Section 5(a) of the FTC Act prohibits unfair and deceptive acts or practices in or

    affecting commerce.27

    As the FTC explains on its website, [w]hen companies tell

    consumers that will safeguard theirpersonal information, the FTC can and does take law

    enforcement action to make sure that companies live up to these promises by bringing

    actions under Section 5.28

    For example, in United States v. RockYou, Inc., the FTC

    brought an action against RockYou, a social gaming website. RockYous privacy policy

    2715 U.S.C. 45(a).

    28Making Sure Companies Keep Their Privacy Promises to Consumers,

    http://www.ftc.gov/opa/reporter/privacy/privacypromises.shtml.

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    represented that it did not knowingly collect or maintain personal information from

    children under 13 and that it would delete any such information once it learned it had

    collected it. In fact, the company did knowingly collect email addresses and other

    personal information from children and did not delete the information. Thus, the FTCs

    complaint alleged that this statement was false and misleading under Section 5.29

    Likewise, Nickelodeon and PlayFirst engage in deceptive acts by making

    misrepresentations in their privacy notices. Specifically, the privacy statement in the

    Apple App store assures parents that [u]ser data collection is in accordance with

    applicable law, such as COPPA.

    30

    In reality, as will be shown below, the SpongeBob

    Diner Dash app does collect personal information from children without complying with

    COPPA.

    In addition, PlayFirsts privacy policy discloses that it collects and uses personal

    information, but represents that it does not knowingly collect personal information from

    children under 13. This claim is contradicted by the content of its own websites

    promotion of the game, whichas can be seen from Figure 4is clearly directed at

    29Complaint, United States v. RockYou, Inc., No. 3:12-CV 01487-SI (N.D. Cal., filed

    Mar. 26, 2012), available at

    https://docs.google.com/viewer?url=http%3A%2F%2Fftc.gov%2Fos%2Fcaselist%2F1023120%2F120327rockyoucmpt.pdf. The complaint also alleged that RockYou collectedpersonal information from children in violation of COPPA. The case was settled when

    RockYou entered into a consent decree barring deceptive claims, imposing civil penaltiesand other forms of relief. United States v. RockYou, Inc.,No. 12-CV-1487-SI (N.D. Cal.,

    filed Mar. 28, 2012).30

    SpongeBob Diner Dash iTunes Page.

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    children.31

    Thus, the FTC should investigate Nickelodeon and PlayFirst for engaging in

    deceptive practices in violation of Section 5.

    III.

    Nickelodeon and PlayFirst Fail to Comply with the Childrens OnlinePrivacy Protection Act

    Under COPPA, an operator of a mobile application directed to children may not

    collect personal information from a child unless it provides notice of the information

    collected and obtains verifiable parental consent before any collection, use and/or

    disclosure of personal information from children.32

    A. SpongeBob Diner Dash Is Directed to Children Under the Age of 13In determining whether an online service is directed to children, the Commission

    considers its subject matter, visual or audio content, age of models, language or other

    characteristics of the website or online service, as well as whether advertising promoting

    or appearing on the website or online service is directed to children. The Commission

    will also consider . . . whether a site uses animated characters and/or child-oriented

    activities and incentives.33

    Using this test, SpongeBob Diner Dash is clearly directed to

    children under age 13.

    31 PlayFirsts website promotes other games directed children, such as DinerTown Zoo, a

    game that lets children build a virtual zoo; DinerTown Pets, which lets children build avirtual pet store; and Mall Stars, which lets children build a virtual mall.32

    16 C.F.R. 312.5(a)(1). The FTC has found COPPA violations against mobile

    applications. See United States v. W3 Innovations LLC, No. CV1103958 (N.D. Cal.,filed Aug. 12, 2011); [T]he term Internet is intended to apply to broadband networks, aswell as to intranets maintained by online services that either are accessible via the

    Internet, or that have gateways to the Internet.Frequently Asked Questions about theChildren's Online Privacy Protection Rule, Question 6, Federal Trade Commission (Oct.

    7, 2008), http://www.ftc.gov/privacy/coppafaqs.shtm#privacy.33 16 C.F.R. 312.2.

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    SpongeBob Diner Dash features the characters from one of Nickelodeons leading

    childrens television shows, SpongeBob SquarePants. SpongeBob SquarePants has been

    the most watched television program for kids ages 2-11 for the past twelve years.34

    According to Nielson data, over two million children ages 2-11 watch SpongeBob

    SquarePants every Saturday. In addition, over an eight-month span 39% of those

    watching SpongeBob were between the ages of 2-5.35

    The SpongeBob Diner Dash game characters include SpongeBob, a bright yellow

    sea sponge; Patrick, a pink starfish; and Mr. Krabs, a red crab and the owner of the

    Krusty Krab.

    36

    These animated characters are designed to appeal to children. According

    to Jane Gould, the Senior Vice President of Consumer Insights for Nickelodeon/MTVN

    Kids and Family Group, SpongeBob is expressly designed to entertain 6-to-11-year-

    olds.37

    The visual and audio content of the SpongeBob Diner Dash application also

    demonstrates that the application is directed to children under the age of 13. SpongeBob

    Diner Dashs visual design employs bright colors and a variety of underwater restaurants

    that serve as levels. Each restaurant is designed to appeal to children, including

    34John Consoli,Holiday Kid Specials Offer Marketers Early Christmas Presence,

    Broadcasting and Cable (Nov. 8, 2012),

    http://www.broadcastingcable.com/article/490309-Holiday_Kid_Specials_Offer_Marketers_Early_Christmas_Presence.php.35

    Roni Caryn Rabin,Is SpongeBob SquarePants Bad for Children?, N.Y. Times Well

    Blog (Sept. 12, 2011), http://well.blogs.nytimes.com/2011/09/12/is-spongebob-

    squarepants-bad-for-children/.36

    SpongeBob Diner Dash, PlayFirst; SpongeBob Characters, Nickelodeon,http://spongebob.nick.com/characters/sandy_character.html.37

    Lauren Effron,Nickelodeon Responds to Study Claiming SpongeBob Hinders

    Preschoolers Attention Spans, ABC News (Sept. 12, 2011),http://abcnews.go.com/blogs/health/2011/09/12/nickelodeon-responds-to-study-claiming-

    spongebob-hinders-preschoolers-attention-spans/.

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    Dutchmans Inn, a pirate ship, and Glove World, an amusement park.38

    The audio

    content comes from SomaTone Interactive, a company that promotes its ability to create

    Gamey-Kids music.39

    Finally, SpongeBob Diner Dash utilizes child-oriented activities and incentives.

    The game is simple, repetitive, and fast-paced. Children control SpongeBob and the

    patrons by sliding their finger and tapping on different locations on the screen. The game

    also incorporates child-oriented incentives. On each level, children receive additional

    game currency for attaining certain scores and for completing SpongeBobs Challenge.

    In addition, children can unlock incentives through earning or purchasing in-game

    currency. These include additional characters from the SpongeBob SquarePants

    television show, new levels, and items that assist SpongeBob in serving patrons faster,

    such as the frying pan shown in Figure 4.

    38See Appendix B.

    39Audio Services, SomaTone Interactive,

    http://www.somatone.com/videogamecomposers.

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    Figure 4

    Because SpongeBob Diner Dash is clearly directed at children under age 13, it

    may only collect personal information if it complies with COPPAs notice and consent

    requirements.

    B. Nickelodeon and PlayFirst Collect Several Types of PersonalInformation from Children

    Under the COPPA Rule personal information is defined as individually

    identifiable information about an individual collected online. Personal information

    includes a first and last name as well as an e-mail address or other online contact

    information, including but not limited to an instant messaging user identifier, or a screen

    name that reveals an individuals e-mail address.SpongeBob Diner Dash collects

    several types of personal information from children. It collects childrens names, email

    addresses, and at least one other form of online contact information.

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    1. First and Last NameThe definition of personal information includes a first and last name.

    40

    SpongeBob Diner Dash allows collection of childrens first and last names. When a child

    enters the application for the first time, she is prompted to a screen with a text box

    stating, Enter your name.

    Figure 5

    The application allows a child to enter seven characters without a space. As demonstrated

    in Figure 6, this will allow some children to include both a first and last name.

    Figure 6

    The application does not tell the child not to use his or her real name, or to use only a first

    name.

    4016 C.F.R. 312.2.

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    2. Email AddressThe definition of personal information includes an e-mail address.

    41SpongeBob

    Diner Dash collects childrens email addresses. As children enter their names on the first

    screen, they are offered the option to select a checkbox stating, I want the Playfirst

    newsletter for game tips and news! As shown in Figure 7, children who check the box

    are instructed on the next screen to Enter your email address to stay connected!

    Figure 7

    This prompt creates the expectation that the child must submit an email address to play

    the game. The screen collecting the email address does not attempt to obtain verifiable

    parental consent. It does not even warn children to check with their parents.

    3. Other Online Contact InformationThe definition of personal information also includes other online contact

    information, including but not limited to an instant messaging user identifier, or a screen

    name that reveals an individuals e-mail address.42

    It appears that SpongeBob Diner

    Dash collects at least one form of other online contact information to contact children

    4116 C.F.R. 312.2.

    4216 C.F.R. 312.2.

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    through push notifications.43

    Push notifications are similar to other types of online

    contact such as text messaging. In the words of mobile technology company Urban

    Airship, [p]ush notifications allow you [the operator] to send messages directly to the

    people who have installed your app, even when the app is closed on a device. . . . Send

    messages to your full audience, segment your audience into specific groups, or send

    custom messages to individuals.44

    When a child first opens SpongeBob Diner Dash, he is told that SpongeBob

    Diner Dash would like to send you notifications, as shown in Figure 8.

    Figure 8

    This dialog box does not disclose what type of contact information the application

    collects and uses to send notifications; nor does it warn children to check with their

    parents before tapping OK. If the child taps on dont allow, the dialog box will

    reappear every time the child opens the application after that. If a child selects OK,

    SpongeBob Diner Dash will send the child notifications such as the one in Figure 9.

    43Notifications such as these may originate locally from the application itself (local

    notifications), or remotely from an operators server (push notifications).About Local

    Notifications and Push Notifications, Apple,http://developer.apple.com/library/mac/#documentation/NetworkingInternet/Conceptual/RemoteNotificationsPG/Introduction/Introduction.html. It was not possible for CDD or

    IPR to determine whether the notifications SpongeBob Diner Dash sends to children arelocal notifications are push notifications.44

    Push Notifications, Urban Airship, http://urbanairship.com/products/push-

    notifications/.

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    Figure 9

    According to Clueful, an online privacy monitoring service, SpongeBob Diner

    Dash collects each childs Unique Device Identifier (UDID), a string of numbers that

    can be used to uniquely identify a childs mobile device.45

    The FTC recently found that

    UDID is the most common piece of information collected and shared by child-directed

    apps.46

    In addition to being central to mobile advertising and analytics,47

    UDIDs can be

    used to send push notifications to a specific device.48

    A UDID is therefore a form of

    online contact information similar to an instant messaging user identifier.

    45Clueful, http://www.cluefulapp.com/; Federal Trade Commission.46

    Federal Trade Commission,Mobile Apps For Kids: Disclosures Still Not Making the

    Grade 9 (2012), available athttp://www.ftc.gov/os/2012/12/121210mobilekidsappreport.pdf.47

    The End of UDIDsWhat it Means for Mobile Advertising, mobyaffiliates,http://www.mobyaffiliates.com/blog/the-end-of-udids-what-it-means-for-mobile-

    advertising/ (The majority of mobile analytics revolves around the UDID in order to

    capture conversion data that tells advertisers how users are engaging with ads. It is apermanent, universal, identifier of a device and is therefore very useful for advertiserswhen it comes to tracking what users are doing, especially when that tracking takes place

    between multiple ad company partners.).48

    If Apple Is Really Rejecting Apps over Use of UDID, the Lack of Alternatives Is aProblem, The Next Web, http://thenextweb.com/apple/2012/03/26/if-apple-is-really-

    rejecting-apps-over-use-of-udid-the-lack-of-alternatives-is-a-problem/.

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    On Apple devices, app operators now also use device tokens to send push

    notifications.49

    Device tokens are identifiers of 64 hexadecimal characters unique to each

    device.50

    Apples programming guide for push notifications describes the device token as

    an identifier analogous to a phone number that allows the Apple Push Notification

    Service to identify and locate the device that is the intended recipient of a notification.51

    App developers can view a device token list of all users of an application, tagged with

    other information, and select specific devices to contact.52

    Regardless of whether SpongeBob Diner Dash collects childrens UDIDs, device

    tokens, or both, it is collecting and using online contact information that can be used to

    send custom messages to individual children in the form of push notifications. These

    identifiers constitute personal information under the existing COPPA Rule.

    Thus, SpongeBob Diner Dash collects and uses at least three types of personal

    information from children. To comply with COPPA, it must give parents notice regarding

    that collection and use.

    49Are UDID and Device Token Synonymous?, Urban Airship Support Center,https://support.urbanairship.com/customer/portal/articles/125827-are-%22udid%22-and-

    %22device-token%22-synonymous-.50Id.

    51Apple Local and Push Notification Programming and Guide, Mac Developer Library,http://developer.apple.com/library/mac/#documentation/NetworkingInternet/Conceptual/RemoteNotificationsPG/ApplePushService/ApplePushService.html.52

    See the sample device token list in Urban Airships developer guide. Server: iOS Push

    API,Device Token List,Urban Airship Documentation,https://docs.urbanairship.com/display/DOCS/Server%3A+iOS+Push+API#ServeriOSPus

    hAPI-DeviceTokenList.

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    C. Nickelodeon and PlayFirst Fail to Comply with COPPAs NoticeRequirement

    COPPA requires that notices to parents be placed in specific locations and include

    specific information. SpongeBob Diner Dash does not comply with either requirement.

    COPPA Rule 312.4(b) requires that the operator of an online service directed at

    children post a link to the notice of its information practices with regard to children on

    the home page of its website or online service and at each area on the website or online

    service where personal information is collected from children. Nickelodeon and

    PlayFirst do not satisfy this requirement. There is no link to the privacy policy from

    within SpongeBob Diner Dash when information is collected from children or at any

    other time. This is important because once an app has been downloaded, a parent is

    unlikely to return to the App Store for more information.

    Even using the more expansive view of what constituted a privacy disclosure

    used by the FTC in its recent report,Mobile Apps for Kids, SpongeBob Diner Dash falls

    short.53 We found what might be considered privacy notices on the SpongeBob Diner

    Dash promotion page in the Apple App Store, on the Nick Games website, and on the

    PlayFirst website. However, none of these disclosure statements contained the content

    required by the COPPA Rule.

    Not only is the Apple App Store description of SpongeBob Diner Dash

    affirmatively misleading in that it represents that the app complies with COPPA, but it

    fails to provide an adequate description of the personal information collected from

    53For purposes of the report, the FTC examined disclosures or links on the app

    promotion page, on the developers website, or in the app itself. Federal Trade

    Commission,Mobile Apps For Kids: Disclosures Still Not Making the Grade (2012).

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    21

    children. COPPA Rule 312.4(b)(2) requires among other things that notice to parents

    include the name, address, telephone number, and email address of all operators

    collecting or maintaining personal information from children; the types of personal

    information collected from children and whether it is collected actively or passively; how

    such personal information is or may be used by the operators; whether personal

    information is disclosed to third parties, and if so, the types of business in which third

    parties are engaged and the general purposes for which such information is used; whether

    the third parties have agreed to maintain the confidentiality, security and integrity of the

    data; and that the parent can review and have deleted the child's personal information and

    deny permission for further collection.54

    The Apple App store discloses that SpongeBob Diner Dash collects personal

    user data as well as non-personal user data (including aggregated data), connects with 3rd

    party social media applications, allows communication with other app users, and/or offers

    in-app purchases. It further states that User data may be used, for example, to respond

    to user requests; enable users to take advantage of certain features and services;

    personalize content and advertising; and manage and improve Nickelodeon's services.55

    This description fails to include contact information for the operators, the types of

    personal information collected by children, how third parties are using the data, whether

    third parties have agreed to maintain the confidentiality and security of the data, and that

    parents have a right to review, delete and refuse further collection of data. The

    information that is provided is vague, e.g., used to enable users to take advantage of

    5416 C.F.R. 312.4(b)(2)(ii), (iv), (vi).

    55See Appendix B.

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    22

    certain features and services, and does not provide sufficient details for parents to make

    an informed choice.

    Nor is this deficiency remedied by the link to the nick.com privacy policy.56

    That

    privacy policy applies to virtually all of the websites and online services within the

    Nickelodeon Group. Indeed, the link on the Nick Arcade website takes the user to the

    same privacy statement. The general privacy statement does not identify the information

    collected by SpongeBob Diner Dash or how it is used. It is also long, complex and uses

    language that many parents are unlikely to understand, such as third party advertising

    networks, data exchanges, traffic measurement service providers, marketing analytics

    service providers. It also does not specifically identify what information is collected

    from children or how that information is used.

    Finally, the privacy policy on the PlayFirst website does not satisfy the COPPA

    notice requirements. Like the Nickelodeon Group privacy policy, PlayFirst has one

    policy governing its many games and does not specifically discuss SpongeBob Diner

    Dash. The privacy policy is long, complex, vague, and difficult to read. It does not

    specifically address information collected from or used to contact children. Instead, as

    discussed earlier, it misrepresents that it does not knowingly collect personal information

    from children under 13.

    56Privacy Policy/Your California Privacy Rights, Nickelodeon (May 23, 2012),

    http://www.nick.com/info/privacy-policy.html.

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    23

    D. Nickelodeon and PlayFirst Fail to Comply with COPPAsRequirement that it Obtain Verifiable Parental Consent Before

    Collecting Personal Information from a Child

    Apart from a few limited exceptions, COPPA requires operators that direct

    applications towards children to obtain verifiable parental consent.57

    Not only do

    Nickelodeon and PlayFirst fail to provide parents notice as required by COPPA, they

    make no effort to obtain verifiable parental consent before collecting personal

    information from a child.

    Moreover, Nickelodeon and PlayFirsts collection of personal information

    through SpongeBob Diner Dash does not fall within any of COPPAs exceptions. The

    only exception that could possibly apply here is one that allows operators to provide

    newsletters, but only if they make reasonable efforts to ensure that the parent

    receives notice and has the opportunity to request that the operator make no further use of

    the information. This effort must be made immediately after the initial response and

    before making any additional response to the child.58

    Nickelodeon and PlayFirst make

    no attempt to notify parents or provide any information about the ability to opt-out of

    communications, thus violating COPPA.

    IV. ConclusionIn sum, SpongeBob Diner Dash is a child-directed mobile app that collects

    childrens personal information including full name, email address, and other online

    contact information without providing notice to parents or obtaining prior parental

    consent as required by COPPA. In addition, Nickelodeon and PlayFirst are engaging in a

    5716 C.F.R. 312.5(a).

    5816 C.F.R. 312.5(c)(3).

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    24

    deceptive practice by falsely representing in the privacy disclosure for SpongeBob Diner

    Dash on the Apple App Store that its data collection is in accord with COPPA. Thus, the

    Center for Digital Democracy respectfully requests that the FTC promptly initiate an

    investigation of Nickelodeon and PlayFirst, enforce the relevant provisions of COPPA

    and the FTC Act, stop the collection of childrens personal information without parental

    notice and consent, and seek all other appropriate remedies.

    Of Counsel:

    Jordan BlumenthalJessica Wang

    Georgetown Law Students

    December 17, 2012

    Respectfully submitted,

    Angela J. CampbellLaura M. Moy

    Institute for Public RepresentationGeorgetown University Law Center

    600 New Jersey Avenue, NWWashington, DC 20001

    (202) 662-9535Counsel for Center for Digital Democracy

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  • 7/30/2019 2 - Sbdd Rfi and Appendices Final

    38/41

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  • 7/30/2019 2 - Sbdd Rfi and Appendices Final

    39/41

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  • 7/30/2019 2 - Sbdd Rfi and Appendices Final

    40/41

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  • 7/30/2019 2 - Sbdd Rfi and Appendices Final

    41/41

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