Budget smartphone company BLU Products has agreed to a settlement with the Federal Trade Commission (FTC) over its alleged use of user data by a third-party, according to a report by Android Headlines. No payment amount was announced by the FTC. Instead, terms were laid out that BLU must follow as part of the agreement.
The suit involves a 2016 report that surfaced suggesting the company used ADUPS on BLU mobile devices to collect more user information than allowable. While BLU was permitted to collect some user data from the devices, the excessiveness to which it did was called into question by the FTC. This included location data, call and message logs, and in some instances, full text message content.
BLU has denied knowledge of the scandal but has dedicated itself to making sure its devices did not use ADUPS to collect data that was unnecessary or at all. In the FTC complaint, two areas were outlined where BLU did not protect users – by collecting data that was not necessary and not taking action to remedy the situation when the company became aware of the issue.
Going forward, BLU will need to increase its protection for users with the use of a comprehensive security program. The company must also not misrepresent as a company that is able to deal with matters of security and privacy. In addition, the BLU will be subject to scrutiny by third-party assessment every two years for the next 12 years.