Mobile Apps Drawing Increased Regulatory Scrutiny

The mobile app industry has grown exponentially in recent years. Data indicate that there are currently over a million mobile apps, with an additional 1,600 new apps introduced every day. The growth of the mobile app industry has prompted concern regarding the collection and handling of consumers' personal information. In the past year, federal and state regulators have increased enforcement of consumer privacy laws and issued new, sometimes controversial, guidelines for the mobile app industry. More than ever before, compliance with existing regulations is a critical business concern. Inadequate privacy disclosures or data-security practices may not only prompt expensive federal and state regulatory actions, but may also tarnish a company's brand in the marketplace. While the legal landscape regulating mobile apps is evolving, developments in a few areas deserve particular attention.