$800k Settlement for Creator of Social Media App Path

The firm responsible for Path, a mobile app which helps users keep diaries and share data with friends and social media contacts, has paid $800,000 to settle a privacy complaint.

The app was found last February to be uploading users' entire address books from their mobile devices, without their consent - an opt-in for this process was included but the FTC said Path had collected information including names, addresses, phone numbers, email and social media usernames from Apple users even where permission was not received. The Commission said the company had thereby engaged in unfair and deceptive practices, although the settlement means Path is not accepting it did wrong.

Among the claims, the FTC said Path collected information from around 3,000 under-13 year olds without parents' consent - in violation of the country's COPPA law. Path said on its blog that it discovered the problem before being contacted by the FTC and has closed the 'very small number' of accounts concerned.

As part of the deal, Path has agreed to establish a comprehensive privacy program and submit to privacy audits every other year for the next twenty years.

Outgoing FTC Chairman John Leibowitz commented: 'This settlement with Path shows that no matter what new technologies emerge, the agency will continue to safeguard the privacy of Americans.' He added: 'Some companies are doing a good job of following these principles and protecting consumer privacy - but if other companies don't wake up and do the right thing, my sense is the industry is more likely to face far more proscriptive legislation down the road.'