FTC sues weight-loss companies alleging COPPA and FTC Act violations

Federal Issues FTC Deceptive COPPA FTC Act Privacy/Cyber Risk & Data Security Courts Enforcement

On February 16, the FTC filed a complaint for permanent injunction in the U.S. District Court for the Northern District of California against an international weight loss service organization and its subsidy (collectively, “defendants”) for allegedly using unfair and deceptive practices to obtain personal information of underage users without parental consent. According to the complaint, the defendants violated the Children’s Online Privacy Protection Act and Section 5 of the FTC Act by collecting and keeping personal information from children under 13 without providing notice to or obtaining consent from their parents. The complaint alleges that the defendants, among other things, failed to: (i) “provide through the App and website a clear, understandable, and complete direct notice to parents of [the] Defendants’ practices”; (ii) “make reasonable efforts, taking into account available technology, to ensure that parents receive the direct notice”; and (iii) “obtain verifiable parental consent before any collection, use, or disclosure of personal information from children.” The proposed settlement is pending court approval.