FTC settles with OpenX Technologies for $2 million for allegedly violating children’s privacy law
Advertising platform OpenX Technologies will pay the Federal Trade Commission $2 million over allegations that it failed to comply with a federal rule requiring online services to obtain parents’ consent before collecting data about children under the age of 13. OpenX offers automated ad buying that allows companies to reach a precise audience in real-time. The settlement effectively serves as a warning to digital advertising platforms, which funnel massive amounts of data through real-time advertising bids, often with little transparency. “OpenX secretly collected location data and opened the door to privacy violations on a massive scale, including against children,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “Digital advertising gatekeepers may operate behind the scenes, but they are not above the law.” A complaint from the Department of Justice filed on behalf of the FTC alleges that the company knowingly collected information from hundreds of apps that […]
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