Hospitality Industry Legal Risks: Hotel “Mobile Applications” Must “Post Privacy Policy” Allowing Guests To “Access And/Or Request Changes To Personal Information”

“…In the case of an online service, “conspicuously posting” a privacy policy requires that the policy be “reasonably accessible…for consumers of the online service…the consumer (must be able) to access or request mobile technologychanges to personal information, (and) the operator of the site will notify consumers of changes, and the effective date of the policy..”

Hotel companies are actively entering the mobile application space as a means of gaining market share and solidifying guest relations. In addition to online travel agents like HotelsbyMe.com, a number of brands including Omni, Choice and Starwood have developed mobile applications. However, as mobile applications gain popularity, hotel companies should consider how privacy and security laws will impact how they can use those applications.

For companies with operations in California, that issue was highlighted on December 6, 2012, when the California Attorney General filed a lawsuit against Delta Airlines for failing to include a privacy policy with a smartphone application. The lawsuit, the first of its kind, alleges that Delta violated California law requiring online services to “conspicuously post its privacy policy” by failing to include such a policy with its “Fly Delta” mobile application.

The California online privacy law

In 2004, California enacted the California Online Privacy Protection Act (“CalOPPA”). This law requires operators of websites and online services to “conspicuously post” privacy policies about the personal information that is collected, how the consumer can access or request changes to personal information, how the operator of the site will notify consumers of changes, and the effective date of the policy.

In the case of an online service, “conspicuously posting” a privacy policy requires that the policy be “reasonably accessible…for consumers of the online service.”

CalOPPA does not define an “online service” or mention “mobile” or “smartphone” applications, likely due to the fact that in 2004, smartphones and mobile applications were just being developed. However, the California Attorney General considers any service available over the internet or that connects to the internet, including mobile apps, to be an “online service.”
For more:  http://www.hotelnewsresource.com/article68597Hotel_Lawyer_on_How_New_Privacy_Law_Enforcement_May_Affect_Your_Mobile_Apps_Used_in_Marketing_.html

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