News for the Hospitality Executive |
Hotel Lawyer Privacy Alert: Do your hotel mobile apps comply with new interpretations of online privacy rules? |
For the most
recent update on this topic, click here By Jim Butler and the Global Hospitality Group® Hotel Lawyers | Authors of www.HotelLawBlog.com January 11, 2013 Hotel Lawyer on how new privacy law enforcement may affect your mobile apps used in marketing. Hotel lawyer Robert Braun has an alert that may save you an unnecessary class action or troublesome lawsuit (or enforcement action). Although, the California Attorney General has started the furor, the impact of this approach will affect any company who deals with even one consumer in the state of California, and thus is likely to affect most of the hospitality industry in the United States, and many companies outside the US. Here is what it is all about. Privacy on the Move For companies with operations in California, that issue was highlighted on December 6, 2012, when the California Attorney General filed a lawsuit against Delta Airlines for failing to include a privacy policy with a smartphone application. The lawsuit, the first of its kind, alleges that Delta violated California law requiring online services to "conspicuously post its privacy policy" by failing to include such a policy with its "Fly Delta" mobile application. The California
online privacy law In the case of an online service, "conspicuously posting" a privacy policy requires that the policy be "reasonably accessible...for consumers of the online service." CalOPPA does not define an "online service" or mention "mobile" or "smartphone" applications, likely due to the fact that in 2004, smartphones and mobile applications were just being developed. However, the California Attorney General considers any service available over the internet or that connects to the internet, including mobile apps, to be an "online service." California
Attorney General becomes active Following up on this development, in October 2012, the California Attorney General's office sent letters to a number of mobile application makers that did not have a privacy policy reasonably accessible to app users, giving them 30 days to respond or make their privacy policies accessible in their apps. Delta's response was not definitive, and the Attorney General sued. The risks are high - failure to comply with CalOPPA can result in fines of up to $2,500 for each violation. National (and
international) implications from this California development? In any event, CalOPPA will have a
broad reach,
because it applies to: Thus, website or online service operators must comply with CalOPPA if they do business with any California consumers. With the size of California's population and the importance of its market, the practical effect of CalOPPA will force an overwhelming number of online businesses (including mobile app developers) to comply with it. As a result, hotels and hotel companies that use smartphone apps as part of their "mobile strategy," must make privacy policies accessible to app users. Hotel companies can comply by including the privacy policy within the app itself or by creating an icon or text link to a readable version of the privacy policy, which may be part of a company's overall web privacy policy. Developing a
comprehensive data technology, privacy and security program If this article was of interest,
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__________________________ Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,300 properties all over the world. For more information, please contact Jim Butler at [email protected] or +1 (310) 201-3526. Jim Butler is a founding partner of JMBM, and Chairman of its Global Hospitality Group® and Chinese Investment Group™. Jim is one of the top hospitality attorneys in the world. GOOGLE "hotel lawyer" and you will see why. Jim and his team are more than "just" great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them. |
Contact: [email protected] 310.201.3526 |
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