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<br /> The mobile advertising firm <keyword id="164941" type="COMPANY" weightage="100" keywordseo="inMobi">InMobi</keyword>, which is backed by SoftBank, will have to pay $950,000 in civil penalties and implement a comprehensive privacy program so that it can settle the case that federal trade commission has put up against it. As per FCT, it deceptively tracked locations of "hundreds of millions of consumers - including children - without their knowledge or consent" so that it could serve geo-targeted advertising. <br />
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As per <a href="http://economictimes.indiatimes.com/small-biz/startups/inmobi-to-pay-950000-fine-to-settle-ftc-charges-for-tracking-location-of-consumers-without-consent/articleshow/52878938.cms">ETtech</a>, a statement by FTC noted that as per the settlement, InMobi is subject to a $4 million penalty; however, the agency suspended the fine to $950,000 because of its financial condition. <br />
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As per the complaint, InMobi was tracking consumers' location without asking for their consent and even when consumers had actually denied it the permission. <br />
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"InMobi created a database built on information collected from consumers who allowed the company access to their geo-location information, combining that data with the wireless networks they were near to document the physical location of wireless networks themselves. InMobi then would use that database to infer the physical location of consumers based on the networks they were near, even when consumers had turned off location collection on their device." FTC said in a statement. <br />
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The agency added that InMobi's software also tracked location in thousands of apps "that were clearly directed at children, in spite of promising that it did not do so". While doing this, it also violated the Children's Online Privacy Protection Act (COPPA). <br />
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In addition to the fine, InMobi is also directed to set up a comprehensive privacy program that will be independently audited every two years for coming two decades. <br />
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InMobi, on the other hand, has said that it discovered technical error at its end that led to this. It also said that it promptly notified the FTC about this on discovering it, making it clear that this was not deliberate. <br />
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<a href="http://media.al.com/news_birmingham_impact/photo/money-gaveljpg-3872f09e1069ce80.jpg"><em>Image source</em></a><br />

InMobi fined $950,000 for tracking consumer location without consent

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Sean Gallup/Getty Images</span></p><p class="caption">The companies claim REX makes programmatic <keyword id="35666" type="COMPANY" weightage="100" keywordseo="advertising">advertising</keyword> safe in the kids market.</p></div><p></p></div></div>Rubicon Project, the public ad tech company, has formed a partnership with "kid-safe" marketing platform SuperAwesome to create what they are claiming is the world's first kid-focused programmatic advertising exchange.</p><p>The launch of "REX" means that marketers can now use Rubicon's automated tools to buy advertising to target children under the age of 13 online - with the guarantee that the ads they buy are safe and legal.</p><p>To date, the entire online children's advertising market operated on a direct-deal basis, meaning advertisers couldn't use programmatic tools to buy ads targeted to children across a range of sites - they'd have to speak to each publisher's sales teams directly.</p><p>In the US, the Federal Trade Commission introduced <a href="https://www.ftc.gov/tips-advice/business-center/guidance/complying-coppa-frequently-asked-questions">COPPA</a> (The Children's Online Privacy Protection Act) in 2000, which places strict restrictions on marketing to children under the age of 13, particularly prohibiting the use of using behavioral data to target kids.</p><p>Joshua Wohle, SuperAwesome's chief product officer, told Business Insider: "Programmatic in the conventional sense (data/profile-driven) is not possible in the under-13 space: There have been zero under-13 targeting options, nobody is doing this. With REX, we're enabling buyers to specifically target this audience based on the contextual first-party data we have associated with all of the publishers which run our AwesomeAds technology."</p><p>SuperAwesome was founded in the UK in 2013 and has raised $7 million in funding. The company claims its ad platform reaches more than 250 million children each month and its client list includes brands such as Nintendo, Lego, and Warner Bros.</p><p>In June, InMobi became the first mobile ad network to be punished by the FTC under COPPA after it was found to be tracking the geolocation of children without their parental consent, <a href="http://adexchanger.com/mobile/inmobis-illegal-location-tracking-debacle-just-tip-iceberg-regulators-chomping-bit/">AdExchanger reported</a>. InMobi was fined $950,000, lowered from an initial $4 million penalty, due to the company's "financial condition."</p><p>Here's a diagram explaining how The Rubicon Project and SuperAwesome's REX will work:</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="SuperAwesome" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5798845f88e4a71a008bafd1-960/howdoesitwork_v2 (1).png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>SuperAwesome</span></p></div><p></p></div></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/key-exercises-get-stronger-2016-7">An exercise scientist reveals the key to getting stronger</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="VubGdvNDE6avxGj37Zv1jxiHQlkseRzB" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Advertisers are now able to buy programmatic ads to target kids online

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Good morning. Here's everything you need to know in the world of <keyword id="35666" type="COMPANY" weightage="100" keywordseo="advertising">advertising</keyword> today.</p><p><strong>1. <a href="http://www.businessinsider.com/citigroup-mark-may-on-alphabet-buyback-2016-6">Here's why another Google stock buyback could be on the way.</a></strong> Citigroup analyst Mark May thinks there will be another buyback during Google's Q2 earnings because he thinks the company has already depleted its original $5 billion buyback from its Q3 earnings in October.</p><p><strong>2. <a href="http://www.businessinsider.com/mailonline-publisher-martin-clarke-daily-mail-expansion-us-2016-6">MailOnline publisher Martin Clarke told us how he is conquering America by spending millions on luxury party yachts at the Cannes Lions advertising festival.</a> </strong>"We consider it a good investment," he said.</p><p><strong>3. <a href="http://www.businessinsider.com/youtube-vp-content-partnerships-kelly-merryman-2016-6">We asked YouTube's content boss how its paid service is doing and why it is training its biggest stars to use VR.</a></strong> Kerry Merryman said she is "happy" and "encouraged" by the progress of YouTube Red.</p><p><strong>4. <a href="http://www.businessinsider.com/lacroix-sales-are-exploding-2016-6">Sales are exploding for a little-known soda brand with a cult following.</a></strong> LaCroix Sparkling Water has seen sales balloon from $65 million in 2010 to $226 million in 2015.</p><p><strong>5. I<a href="http://www.businessinsider.com/iggy-pop-opens-up-about-his-biggest-fears-and-regrets-and-why-he-feels-better-now-than-when-he-was-25-2016-6">ggy Pop spoke at the Cannes Lions advertising festival about his biggest fears, regrets, and why he feels better now than when he was 25.</a></strong> He also shared thoughts on his favorite - and hated - ads.</p><p><strong>6. <a href="http://www.businessinsider.com/an-agency-ceo-has-apologized-for-sending-out-a-cannes-party-invite-for-attractive-females-and-models-only-2016-6">An invite was sent out for a Cannes party seeking "attractive females and models only."</a> </strong>It was sent by an events company on behalf of VaynerMedia and Thrillist Media, both of which immediately apologized.</p><p><strong>7. <a href="http://www.businessinsider.com/why-a-social-media-star-gave-up-tumblr-2016-6">Here's why social media star Elliot Tebele - known better as F--kJerry - gave up on Tumblr.</a></strong> Ultimately, it came down to man power.</p><p><strong>8. <a href="http://www.businessinsider.com/photos-of-new-pinterest-office-2016-6">Pinterest has a gorgeous new office.</a> </strong>You'll find Pinterest's HQ at 651 Brannan Street in San Francisco's SoMa neighborhood.</p><p><strong>9. <a href="http://www.businessinsider.com/why-snaproute-founder-left-apple-2016-6">A former Apple manager explained why he couldn't deal with the company's secrecy any more.</a></strong> Jason Forrester, the former global data center manager at Apple, said: "Slowly, our desire to share our ideas with the world began to overshadow the thrill and pride of working for Apple."</p><p><strong>10. <a href="https://www.ftc.gov/news-events/press-releases/2016/06/mobile-advertising-network-inmobi-settles-ftc-charges-it-tracked?utm_source=govdelivery">The FTC has hit ad tech company InMobi with a $4 million fine, ruling the business had deceptively tracked hundreds of millions of consumers - including children - without permission.</a></strong> The civil penalty has been suspended to $950,000, based on the company's financial condition, and it must also delete all the information it collected from children.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/sierra-blair-coyle-climbed-a-skyscraper-with-lg-vacuums-2016-6">LG pulled off its craziest marketing stunt yet to promote its latest vacuum cleaner</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="dvNDd5MzE6N5RV4_7zvGl66Gr-ko0bZV" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

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InMobi fined $950,000 for tracking consumer location without consent

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