Path/FTC Settlement - Much More Than A Slap On The Wrist

On February 1, 2012, “smart journal” application provider, Path, Inc. (“Path”) agreed to settle Federal Trade Commission (“FTC”) charges that it deceived consumers and improperly collected personal information in violation of the FTC Act and the Children’s Online Privacy Protection Act (“COPPA”). Mobile platforms and application providers should take note of this settlement and the underlying charges in order to avoid potentially onerous fines associated with such privacy violations.

Path describes its social networking service as a way to “keep a personal journal, or ‘Path’, of your life.” Through the “Path App”, a user can upload, store and share photos, written journal entries, current locations and songs. The FTC initiated its action against Path in February of 2012, taking issue with the method by which Path was collecting and storing personal data. Specifically, the FTC pointed to the “Add Friends” feature that provided users with three options: “Find friends from your