Apple has launched, in connection with other privacy changes in iOS 14, a requirement for privacy "nutrition labels." The labels are required for new and existing apps, and are in addition to the existing requirement of linking to the company's long-form privacy policy. Apple will automatically generate the label based on the company's answers to its online questionnaire. Apple is requiring companies to explain what information they -and third-party partners collect. Answers will be turned into visuals for the label (a circle "i" for example, for contact information). Companies can also include optional disclosures, like confirming that data is not being used for tracking or third-party advertising purposes (if that is accurate).
Care should be taken that the person completing the questionnaire has accurate information about the company's practices. Apple stresses that companies are responsible for the accuracy of the information provided to it. We will be watching the launch of this program to see what perspective regulators take about these labels, and potential unfair and deceptive trade practice exposure if they are inaccurate. Responses can be updated at any time.
Putting it Into Practice: Companies that operate mobile apps will need to address these App Store requirements. Care should be taken that the answers submitted into the questionnaire are accurate. To address potential UDAAP exposure, companies will want to track and update their "label" for accuracy just as companies do for their privacy policies.
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