An ongoing lawsuit between the New Mexico attorney general and the maker of the Angry Birds game is well worth watching for any companies in the games space. The AG accuses Angry Birds of taking information from under-13s and reselling it to third parties who use it to target ads to those children, without following the requirements of COPPA, the US children's privacy law. Angry Birds vigorously disputes the charges.
Angry Birds essentially says that the Attorney General misunderstands how electronic devices work, and that the data collection practices employed by the game are sound. Angry Birds specifically outlines that it has met several times with the Federal Trade Commission on how it handles data about children.
Why It Matters
Angry Birds is a game played by adults and children alike: it is not solely a kids' service. How the court in New Mexico views their data practices, however, may be instructive to other companies with services that are used by both kids and grown-ups. Many companies employ analytics, retargeting, and use of ad networks, and may not fully appreciate the privacy impact of those services (or how the laws about children may require a different approach to such services).
Whether a state can preemptively go after a company that specifically says it has met with the US federal privacy watchdog to hone its practices is also well worth watching.