App developers writing applications that target children have to be very careful when they collect and store information about their users. They may find themselves the subject of an FTC investigation.
The Children's Online Privacy Protection Act (COPPA) requires websites and other online entities to obtain parental consent when collecting data on children under the age of 13. The procedure to gain this consent can be cumbersome which is why many websites don't allow children under the age 13 to join. The COPPA Act also applies to mobile applications as W3 Innovations recently found out.
W3 Innovations is the parent company of Broken Thumbs Apps which is responsible for apps such as