Delta Might Lose $2,500 Every Time Someone Downloads Its App

Illustration for article titled Delta Might Lose $2,500 Every Time Someone Downloads Its App

This would be pretty hilarious. Delta is being sued by the state of California over the privacy policy in the app's Terms of Service. The problem? It doesn't exist.

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California law states that companies have to have their privacy policies posted "conspicuously." Delta's app just doesn't have one, and it's facing up to a $2,500 fine for each download. It claims the app has been downloaded by millions of users from both the iOS App Store and Google Play. A shame really since it's a great travel app.

The final penalty will be nowhere near the maximum, but some basic math spits out a $5 billion fine at the full $2,500 for two million users. Delta reported a net income of $854 million last year, on gross revenue of $35.12 billion.

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Here's the complaint, direct from California's release yesterday:

The California Online Privacy Protection Act requires commercial operators of websites and online services, including mobile and social apps, which collect personally identifiable information from Californians to conspicuously post a privacy policy. Privacy policies are an important safeguard for consumers. Privacy policies promote transparency in how companies collect, use, and share personal information. If developers do not comply with their stated privacy policies, they can be prosecuted under California's Unfair Competition Law and/or False Advertising Law.

The California's OPP Act is a wonderful acronym and enforced by the California DOJ's Privacy Enforcement and Protection Unit. We'll let you know if California actually sues a major airline out of existence (it won't), but for now, go download the app and make Delta's executives' hair fall out. [CA.gov via ComputerWorld]

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DISCUSSION

I am a bit confused on how California could fine Delta for downloads outside of it's state. That is like taxing someone CA rates for buying something from NY while living in MN.

I can understand fining them for downloads initiated by someone who lives in CA or was in CA at the time of download.