The Securities and Exchange Commission has subpoenaed Pandora as part of an investigation into the way that certain popular applications that run on Apple and Android platforms share information about users. According to the Wall Street Journal, the investigation is centered on the question of whether certain popular smartphone applications used information about their applications’ users, without disclosing the uses properly.
This information follows a report by WSJ in December that Pandora and other popular applications were transmitting information obtained about user locations and preferences to third parties such as advertising platforms without permission. Pandora’s app reportedly fed info about the user’s age, gender, and location.
The news of the subpeona came to light when Pandora filed an amendment to its plans for an IPO. Supposedly other popular applications are included in the investigation – Pandora has said it is not the specific or sole target of the investigation.
Sometimes it’s not all roses when it comes to being the leader of the pack – in this case Pandora’s highly popular mobile apps are causing some higher profile scrutiny. And again, the industry will have Pandora to thank for pushing the envelope and finding the line in the sand. While advertisers demand more targetability, these functions can only be delivered with this kind of user data.
You can hear more about this topic at RAIN Summit West in Las Vegas on April 11th, especially on the Legal Issues panel hosted by David Oxenford and joined by experts from Rhapsody, Live365, SESAC, and EMF Broadcasting. You can register for that event here.