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ARTICLE · 15 MAY 2014

Poor Mobile App Security Draws FTC’s Attention

ArentFox Schiff
ArentFox Schiff
Contributor
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The FTC recently charged two companies with misrepresenting the security of their mobile apps and failing to securely transmit sensitive personal information.

United StatesMedia, Telecoms, IT, Entertainment
Sarah Bruno
Sarah Bruno
Daniel Jasnow
Daniel Jasnow
Anthony V. Lupo
Anthony V. Lupo
Matthew Mills
Matthew Mills
Eva Pulliam
Eva Pulliam

What Made News?

The Federal Trade Commission (FTC) recently charged two companies — Fandango, LLC, and Credit Karma, Inc. — with violating the FTC Act by misrepresenting the security of their mobile apps and failing to securely transmit sensitive personal information over the Internet. In order to settle the charges, the companies have agreed to establish comprehensive security programs designed to address security risks during the development of their apps and to undergo independent security assessments every other year for the next 20 years.

What Do These Companies Do?

Both Fandango and Credit Karma operate mobile apps — Fandango has an app for the iOS operating system that allows consumers to purchase movie tickets and view information such as show times, trailers, and reviews; Credit Karma has an app for iOS and Android that allows consumers to monitor and evaluate their financial status.

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