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Yelp settles lawsuit with the FTC at $450,000


Yelp becomes the latest organization to make peace with the Federal Trade Commission in relation to the violation of the Children’s Online Privacy Protection Act (COPPA). According to the reports, Yelp has agreed to pay a fine of approximately $450,000 for the violation of the act. The Children’s Online Privacy Protection Act (COPPA) governs the methods and the extent up to which the various online organizations can ask for personal information from children.Yelp settles lawsuit at $450,000 with FTC

Yelp is an online organization where in users can register and share their thoughts and reviews about a variety of things. But according to the complaint lodged by the FTC, the Yelp mobile application allowed any and everyone to register irrespective of their age during the period of 2009 to 2013. On the other hand the original website did not allow kids of age 9 to 13 years to participate. But due to the mobile application thousands of children registered on Yelp and the organization collected data including the location stats.

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FTC has turned a lot strict on such issues over the last decade or so. Apart from the amount of $450,000 as a fine, Yelp will have to change the privacy policy for the organization. It will also have to keep the FTC informed about every change that they make to the website as well as the mobile application. According to the statement from Yelp, the mobile application was the victim of a bug and as a result these issues are budding up.

This is not the first time when large organizations have been caught in a struggle with FTC. Apple, Google, etc. have all gone through this. Apple settled the lawsuit with a fine of $32.5 million and Google with $19 million.

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About Wayne Murphy

wmurphy@thenextdigit.com'
Writer and specialized in Mobile Phones (iOS, Android, BB etc), who was with the TND team since it's inception. Other than Blogging, he is also pursuing his graduation on Business Management at CA, California University. All posts by Wayne

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