I have spent many years as a senior executive in the mobile space and am often asked to draw parallels between the mobile world and the online world because “basically mobile is going to follow the online rules/regulations.”   There are, of course, numerous parallels but also distinct differences that industry organizations, government agencies and big businesses are trying to tackle.   First is the fact thatmobile is always on…always there….in your hands. Consumers feel a far greater sense of privacy with their phones than their computers – ourmobile devices   carry most of the important information about our lives.  Most of us would let their friend/significant other share a computer but are not willing to let anyone borrow our phone.  Secondly, phones are the ultimate multi-tasking devices and have created shortened attention spans .The development of apps started a process that allows users to have immediate (and expert) answers to most questions, store very personal details and have allowed for content onsumption during every second of the day.  This “need for speed” has made consumers more likely to overlook privacy or security concerns in the quest for “instant gratification”.  Lastly, mobile apps and the rise of m-Commerce have created a “one-click” mentality where people buy quickly and feel that if there is a problem, their mobile network will protect them by crediting their account or their credit card company will protect them by reimbursing them for any issues.

The real question is:  how safe is that app in your hand?

We have all experienced the situations where we innocently download something from our phone (or computer) only to be spammed and phished.  We thought we read the privacy policy (if there even was one ?) but we clicked past it to get the information we wanted without really understanding or knowing what third parties could potentially have access to this information or how this information would be used.   The development of simple and comprehensive Privacy Policies are a significant issue in furthering making us feel safe in using apps. The Federal Trade Commission is working to protect consumers and promoting greater transparency to protect consumer privacy.  Federal Trade Commission Chairman Jon Leibowitz has advocated that technology companies design privacy policies with the end consumers in mind.  He has suggested that policies be simple to understand, promote consumer choice and allow users to control how their data is used.  The FTC is also promoting the concept of “Do Not Track” for third party cooks and “opt-in” policies (see http://business.ftc.gov/ as a part of their privacy initiatives).

A range of global industry organizations, such as MEF have recently launched global Privacy initiatives to address some of these issues.  They are striving to assist the industry to create their own best practices standards and develop policies that protect consumers and support the growth of themobile industry as a whole.   Consumers need to haveinformed consent, transparent solutions and actually know where their information will be utilized – and all of these things need to take place at the speed of consumer consumption of apps (which is over 350 apps per second).MEF’s recentinitiative, which promotes global industry self-regulation, is led by industry leaders such as Vodafone, InMobi, mBlox, Impact Mobile and SNR Denton (see http://www.mefmobile.org).

Clever businesses have recognized that consumers want their apps quickly and they have created interesting products to help solve these issues.   Lookout, for example, has developed Privacy tools such as: Privacy Scans (which scan every app a consumer downloads to determine who can access your information) and Privacy Advisor (a consolidated list of apps that can access a consumer’s private information, such as: Contacts, Location, Text messages and Identity info.  These consumer- friendly and real-time tools are examples of how technology can be used effectively to help ensure consumer trust in the mobile space.

Lookout’s Privacy Advisor Dashboard

The greatconcern is who will have to deal with the fall-out when a consumer’s privacy is breached.  Consumers will look to operators as a “big brother” who will protect them if something happens on their device and will also look to their financial institutions to protect them if their credit card/bank account information is misused. These are numerous examples of situations where a consumer’s feel their private information has been misused.  A recent example was a lawsuit filed against Facebook, Twitter, Yelp and Apple, Foursquare and 13 other prominent social media firms accusing them of supplying mobile applications that invade users' privacy.The lawsuit was sparked by the controversial New York Times article:  “Mobile Apps Take Data Without Permission”, which indicated that individual’s address books in are “free for app developers to take at will, often without the phone owner’s knowledge”. (http://bits.blogs.nytimes.com).  The more complex issues arise in situations where a consumer’s information is us by a third party and when that information is used in a way that may benefit a consumer or that a consumer wants shared (such as shopping apps or friend finding apps). For example, a consumer uses an app that allows them to buy a product – the current thinking is “wouldn’t that consumer want advertisements for complementary products or a discount on their next purchase?” For advertisers and mobile marketers, these are the big issues that need to be addressed as the playing ground must be fair for both consumers and businesses in these spaces. 

As these issues get tackled on numerous fronts, app creators should follow these three rules:

•    When creating a privacy policy, keep it concise and simple.  If an average 10 year old doesn’t understand it - you need to rethink your policy.  If it takes more than 2 clicks to get through it –you need to rethink your policy.  If even you wouldn’t agree to it - definitely rethink your policy (and maybe your business model too).
•    Make it transparent – if you are planning to use a consumer’s  information for advertising or future marketing purposes, let people know – you will be surprised how many of us will be fine with it.   Consumers watch television commercials every day as a swap for free content. 
•    Don’t get overwhelmed by the process and opt for status quo.  There are a lot of rules, pending legislation, case law and industry standards to look at and understand.  At the end of the day, the goal is to inform and protect yourcustomers.

So, review your existing privacy policies, ensure that your company is working towards creating the best policies it can for your end users and reach out to industry experts who are working to make implementation “privacy in apps”  policies that are fair to all and easier for business owners.