14 DAY TRIAL // Federal prosecutors from New Jersey are questioning Google and Apple in an investigation that aims to determine if the data collection practices of app developers breached any laws.
The problem seems to be that many apps do not clearly inform users regarding the information they gather about them and their devices.
This data usually includes the phone's unique identifier, the user's location and even their age and gender in some cases.
The investigation was revealed by Pandora Media Inc., which runs an online music service, in fillings to the Securities and Exchange Commission.
The company said it wasn't the specific target of the federal probe and that similar subpoenas were probably issued to other app developers as well.
According to the Wall Street Journal, a test performed in December by the publication found that many iPhone and Android apps shared collected information with advertising networks without notifying users.
Out of 101 tested apps, over half sent the phone's unique ID which can be used for tracking to other companies without consent. A little under half sent the location and 45 did not have any privacy policy.
Pandora in particular was found to share information about the user's location, age, gender and phone with multiple advertising networks.
According to WSJ, the federal investigation looks at possible violations of the Computer Fraud and Abuse Act, which means it could theoretically result in criminal charges, although this is unlikely.
A spokeswoman for New Jersey U.S. Attorney Paul J. Fishman, confirmed that Apple and Google were asked for information regarding some applications and their developers.
App vendors also face class action lawsuits from customers and complaints from the Federal Trade Commission. Experts hope that this investigation will bring changes to the industry.