2 - sbdd rfi and appendices final
TRANSCRIPT
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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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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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