Mini Law Lesson: Who Got Sued This Month and Why Brian Heidelberger Winston & Strawn

IMPORTANT DISCLAIMER I am not your attorney. This is not legal advice. But … I did approve this message.

California AG Giving App’s 30 Days to Get Compliant California AG has started sending notices of non-compliance to numerous mobile app developers. CA law requires operators of online sites and services that collect personal information about California residents to post a privacy policy. At a minimum, a link to the app’s privacy policy needed to be conspicuous and “reasonably accessible” to the user within the app. Penalties of up to $2,500 each time a non- compliant mobile app is downloaded.

$800K Settlement re Loyalty Program Rite Aid/Thifty Settled Suit re its +Up Rewards program "It's like paying…" or "It's like getting it for…" may have conveyed to consumers that they would pay the stated prices Instead, the items had to be purchased at a higher price and a coupon printed at the end of the customer's receipt that could be used only for savings on a future purchase. Also alleged failed to redeem gift cards with a cash value of less than $10.

Celebrity Fan Websites to Pay $1 Million to Settle FTC Charges that It Illegally Collected Children's Information Without Their Parents' Consent Justin Bieber, Rihanna, Demi Lovato, and Selena Gomez settled re collecting personal information from children under 13 without their parents’ consent. – Register – Create profiles – Post on members walls Law requires parental notification and consent Also kept info of kids who started but didn’t complete the registration process $1MM penalty and deletion of information.

Charitable Solicitations in Social Media Subject to NY AG Best Practice Guide Clear and conspicuous disclosure of any material terms – including the name of the charity, the amount of the donation per purchase that will go to charity, the maximum donation (if applicable), whether any consumer action is required to trigger a donation, and the start and end dates of the promotion. Disclose whether they have promised a charity a minimum or fixed donation amount regardless of the number of products sold Limit the products placed in the market to the quantity reasonably expected to produce the maximum or minimum Social media promotions are covered Logo use must clarify whether showing support or donation.

Negotiating the Digital Agency- Client Agreement Client wants: Free fixes Exclusivity Priority schedule to fix Items Acceptance criteria Approval over open source code used Hosting provisions (to the extent applicable) Access to agency tools/code in escrow Liability protection re patents/copyrights Responsible for subcontractors Agency wants: Ownership – Its tools/ software and any generic code Disclaimer for third-party issues, no control issues, not bug-free – Transfers only on payment of fee No exclusivity for short projects Free fixes for a short period of time ( no more than 90 day) No liability for patent infringement and cap on other liability No liability for subcontractors

SOCIAL MEDIA