How many of your clients’ children have their own smartphones? How much do your clients know about the information the apps on those phones collect about their children?
A report just issued by the Federal Trade Commission (FTC) says that apps transmit the phone number, precise serial code (a.k.a. location) of a mobile device, and track activities of children without their parents’ knowledge or consent.
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One of the top concerns of the wealthy is how to teach their children to be safe online. Few of them have likely wondered about the apps on their children’s phones.
The FTC is working to strengthen protections for children by requiring site operators to gain parental permission before collecting many types of personal information from children.
But companies including Apple, Google, Facebook, and Viacom along with technology associations and marketing industry groups are pushing back against the effort.
They say the agency’s proposed solution is so broad it could keep companies from offering sites, apps, and other services to children.
The FTC thinks the problem is systemic
and that parents should not think that prohibiting certain apps will solve the problem.
Most apps also fail to alert parents when they involve interactive features to encourage children to make purchases for virtual goods within the app.
More and more, the wealthy are looking for advisors who care about their families’ needs, not just how many assets they have.
Until privacy safeguards are upgraded, parents have to make a conscious effort to educate their children on the dangers of giving information through an app or online.
Even if the FTC succeeds in raising protective standards for children, parents may wish to institute their own protective strategies.
Educating your clients on these matters is an excellent way to deepen your relationship and show them highest value you have to offer.