Following on the heels of the MMA's announcement, the FTC warned marketers of six mobile applications that provide background screening apps that they may be violating the Fair Credit Reporting Act. The FTC warned the apps marketers that, if they have reason to believe the background reports they provide are being used for employment screening, housing, credit, or other similar purposes, they must comply with the Act.
Take away: Businesses who are offering downloadable mobile applications should review the MMA's guidance and privacy recommendations and seek to incorporate them into their practices. Moreover, developers and marketers must keep in mind that traditional laws relating to privacy and advertising issues apply to mobile marketing, even if it is a developing channel.
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