Company that illegally collected, shared children’s online data reaches settlement with California officials

Top lawmakers at the state and city levels reached a settlement with a media company that illegally collected and shared children’s online data through a popular SpongeBob Squarepants mobile app.

According to a release issued by California Attorney General Rob Bonta in partnership with Los Angeles City Attorney Hydee Feldstein Soto, the $500,000 settlement with Tilting Point Media LLC comes after they collected and shared children’s data without parental consent through the mobile app game “SpongeBob Squarepants: Krusty Cook-Off.”

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Tilting Point violated both the California Consumer Privacy Act (CCPA) and the federal Children’s Online Privacy Protection Act by doing so, the attorney general’s office said.

The game itself is a cooking simulation game geared towards children ages 13 and under that includes targeted advertising and in-app purchases.

It was first investigated by the Children’s Advertising Review Unit (CARU), which is part of the Better Business Bureau’s national programs that investigate potential deceptive or inappropriate data collection from children, officials said.

“CARU found that the privacy and advertising practices of the SpongeBob app failed to comply with COPPA and CARU’s industry guidelines,” Bonta’s office said. “Although Tilting Point took some corrective action, a joint investigation by the California Department of Justice and Los Angeles City Attorney’s Office found that Tilting Point was in violation of the CCPA and COPPA in connection with how the mobile app handled children’s data.”

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Among the violations were the media company’s age screen; according to state officials, the company did not “ask age in a neutral manner” which encouraged children to not enter their age correctly in order to be directed to a children’s version of the game.

“Additionally, Tilting Point inadvertently misconfigured third-party software development kits, resulting in the collection and sale of kids’ data without parental consent,” the attorney general’s office stated.

On top of the $500,000 in civil penalties, Tilting Point must also comply with the following injunctive terms:

• Comply with CCPA and COPPA guidelines related to children’s data in the SpongeBob game and all other children’s games

• Not sell or share the personal information of consumers under the age of 13

• Not sell or share the personal information of consumers at least 13 and less than 16 years old without the consumer’s affirmative “opt-in” consent

• If data was collected, provide a timely notice explaining what information was collected, the purpose of its collection, if it will be sold or shared, and link to the relevant privacy policy

• Use “neutral” age screens that encourage children to enter their actual age

• Appropriately configure third-party software development kits to comply with legal requirements relating to children’s data

• Implement and maintain a software development kit governance framework

• Comply with laws and best practices related to advertising for minors

• Minimize data collection and use from children

• Implement and maintain a program to assess and monitor compliance with judgement, including the submittal of annual reports to the California Department of Justice and the Los Angeles City Attorney’s Office

In a statement, Attorney General Bonta noted that the issue was incredibly important to the wellbeing of California children, especially as more and more kids spend more time on their devices.

“Businesses have a legal obligation to protect kids’ data and to comply with important state and federal privacy laws designed to protect children online,” the statement read in part. “Failing to do this puts our kids at risk, leaving them vulnerable to having their personal data collected, tracked and sold…as children spend an increasing amount of time online — both on websites and mobile apps — we will use every enforcement tool to ensure compliance with the law.”

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L.A. City Attorney Feldstein Soto echoed the same sentiment.

“The [mobile game] is based on some of the most beloved and recognizable characters in children’s entertainment,” she said. “I am proud to partner with Attorney General Bonta to protect children throughout our state…and [initiate] this action to stop data harvesting of minors.”

To read the full complaint, click here.

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