logo
Hey, parents: Advertisers could be using mobile games to build profiles about your kids

Hey, parents: Advertisers could be using mobile games to build profiles about your kids

CBC07-03-2025

A small cube snakes around a blank canvas, trying to paint as much space as possible and eliminate other cubes trying to do the same.
It's called Paper.io 2 and is one of the games nine-year-old Jamie Dermody plays most often on his tablet in his Toronto home.
Jamie's mother, Sarah Dermody, says she tries to protect him in a world full of screens with thousands of apps at his fingertips. She says she checks the app store rating of each game he asks to download and monitors his screen time.
"You're trying to do your best as a parent," she said. "There's always that fear … there could be a misstep."
A Marketplace investigation has pulled back the curtain on how some mobile games, which seem to attract children, use loopholes in rules protecting kids' data — allowing marketers to build advertising profiles tailored to them, which can then be more effective at influencing their behaviour.
Not only that, but some games also collect the device's location, which some companies buy, sell and use for targeted advertising. The data is sold with the promise of being anonymous and free of children's information, but Marketplace was able to track down a child using a data sample it received from a company that collects location data.
Games in the Google Play store and Apple's App store are supposed to follow American and European laws that prohibit collecting children's personal information without parental consent, but experts say game developers are easily getting around the rules by putting age restrictions in the games' fine print.
Marketplace looked at 20 of the most popular games in the two app stores to see how often a game's content rating in mobile app stores would differ from the developer's privacy policy.
Marketplace found the privacy policies of many of the games said they were only suitable for players aged 13 and up, while the content rating in the app stores, such as E for everyone, suggests the games are appropriate for younger players.
Since most parents look at the app store rating and not an individual game's privacy policy, many children could be playing games that are collecting their data without parents realizing it.
Though there are federal laws in place to protect people's privacy, researchers say Canada's legislation hasn't kept pace with technology and has no specific protections for children.
"Would you accept that when your kid is playing, there are 10 adults around with pads, noting how he's behaving, where he is, what he's doing? It's the same thing," says Maude Bonenfant, a Canada Research Chair on Gaming, Technologies and Society.
"There's an economic model based on the data and the companies need the data, so that's the money … it is really scandalous that it is so easy to get information from the kids like this."
Age ratings on games in app stores aren't what they seem
When some apps are downloaded, they can immediately start collecting information about you — or, in this case, your kids — ranging from details about the device to details about you and your location.
As you play, more data gets collected. Some of it is innocuous and there to help keep the game running properly, while other data may include personal information about the player and make inferences about their personality and interests.
All that data from different sources gets combined to create a profile on the user — one they'll never see but can be shared or sold to marketers, data brokers and other third parties looking to learn things about the person playing.
Bonenfant and Sara Grimes, a University of Toronto professor in the faculty of information who also researches data privacy in games, both say the issue of advertisers collecting kids' data is widespread.
WATCH | How mobile games keep kids playing and what they do to kids' brains:
Research by one tech company, SuperAwesome, says by the time a child is 13, more than 72 million pieces of personal data will have been captured about them.
"It's daunting. I can't imagine having that much data collected about me and I'm a quasi-public figure … but not when I was three and when I was 13," Grimes said.
In their privacy policies or terms of service, many apps claim the games are for people over 13 and they don't knowingly collect personal information from people younger than that, in line with privacy legislation in the United States that forbids harvesting personal data from anyone younger than 13 without parental consent. Privacy legislation in the European Union has similar measures, with restrictions that go as high as anyone under 16, depending on the country.
But Bonenfant says that doesn't protect children from playing those games because parents often don't look, or know to look, at the fine print. Instead, they likely rely on the first piece of information they see: what's displayed in the mobile app stores.
The App Store and Google Play store have age ratings for games, but those ratings only consider the maturity of the content in the game, not the privacy implications of playing it. The developers behind the games don't determine the ratings in the app stores.
So those ratings don't always match up, but kids or their parents may not know that. Of the 20 games Marketplace looked at in the App Store and Google Play store, there were numerous inconsistencies. In the App Store, nine games had an age rating that didn't match the ages listed in the privacy policy. In the Google Play store, 12 games had an age rating different from what's in the privacy policy.
"Ratings in app stores are almost meaningless and they're continuously contradicted by the age in privacy policy," said Grimes. "It makes no sense."
Dermody was "shocked" to see the app store age rating for Paper.io 2 didn't match what was in the developer's privacy policy.
In its privacy policy, Voodoo, the developers of Paper.io 2, says its games "are not meant to be used if you are under 16" and asks people not to play if they are under 16. But the Google Play store says it's rated as "E" for everyone.
Voodoo said the age in its terms and conditions reflects the age below which parental consent is required to collect and process a player's data and doesn't mean the game is unsuitable for younger players.
Google said the International Age Rating Coalition, not Google, sets the app content ratings in the Play Store. It also said it can't determine how developers handle user data, but said apps have descriptions of how data is collected and handled and the Play Store includes a families section with games designed specifically for children.
Apple said it doesn't dictate an app's privacy policy, apps in the App Store must follow local laws and none of the games Marketplace looked at are in its App Store Kids category, which it says has different rules for apps collecting user data.
Paper.io 2 does not ask for a player's age and lets you play as soon as you install the game. Experts say that could put the game in violation of American privacy laws if the app is directed at children.
Marketplace approached AppCensus, a privacy compliance firm, to get more details about the game.
AppCensus ran an analysis and found Paper.io 2 connects with 27 third parties, many of which are advertising platforms.
AppCensus said the information that could be collected by third parties ranges from innocuous data used to make sure the game runs properly, to more personal information, like a device's unique advertising ID — used to build an advertising profile for users — and the device's approximate location, right down to the neighbourhood level.
In response to these findings, Voodoo said it is committed to user privacy and complying with data protection regulations.
It also said their games don't need age-verification measures, because they aren't specifically designed for young children. The company added third parties may collect localization data (country, time zone, etc.) with the main goal of displaying ads in the player's language or rough location.
Marketplace brought those findings back to Dermody and her son.
While her son's device does have its unique advertising ID turned off, Dermody said she had no idea how many third parties were connected to the game or what information they were collecting.
"I definitely wouldn't want to be sharing that," she said. "Why do they need to know what neighbourhood he lives in?"
Grimes said the findings aren't surprising — but are concerning.
"The number of apps that have no kind of geolocation features but that still collect location data is pretty surprising, and this is as true, maybe even more true, of kid-targeted apps," she said.
Who can get their hands on kids' data?
The Marketplace team also posed as game developers and approached companies that sell location data to see how accessible it could be.
The data shows the whereabouts of people's devices but doesn't have any personal information, like someone's name or email address, attached to it.
All four companies told us they don't have data on children, and most require buyers to sign a contract stating they won't try to identify who the data belongs to.
One company sent a free sample of data without requiring the undercover journalists to sign a contract.
The sample included 34 million location points for more than 700,000 devices in east Toronto over a month-long period in late 2024.
Retracing the route of one device, which could be seen moving between an elementary school and a house, Marketplace tracked down the device to a home with children in it — one of whom said he takes his phone to school with him daily, which means the device we tracked down was likely his.
Marketplace is not identifying the child to protect their privacy.
Grimes questions how strictly these safeguards around making sure data is stripped of personal detail is followed.
"Are all these companies doing a really good job of making sure their data is completely locked down and only good actors have access to it? Highly doubtful."
Bonenfant and Grimes say the results show how concerning it can be if advertisers collect more than just players' locations, like information that helps them shape children's attitudes, beliefs and interests.
Canada needs to do more to protect kids' data, experts say
Both experts say Canada's privacy laws need to be stronger and could look to the U.K. Children's Code for inspiration.
The U.K. Children's Code has 15 standards that online services, like apps, games, connected toys, news services and others, must follow.
The standards include prioritizing the best interests of children, requiring online services to undergo privacy assessments and having the highest privacy settings be the default settings, among other things.
Privacy Commissioner of Canada Philippe Dufresne and his office declined an interview request for this story and said they weren't in a position to comment on Marketplace 's findings, but, in a statement, said protecting children's privacy rights is a priority.
The statement also said the office has advised organizations that children's information is particularly sensitive and requires special consideration.
The office said it has done work on issues related to children's privacy, including opening an investigation into TikTok to determine if the video-sharing platform is complying with privacy laws, including whether proper consent is obtained for the collection, use and disclosure of personal information.
Until Canada's laws are updated, Bonenfant said people will have to do their best to protect themselves.
Dermody said it leaves her in a tough spot.
"I'm still really stuck on how I can evaluate the privacy piece of [games] because that information really isn't transparent," she said. "There has to be a better way."
How to limit advertisers from tracking you on your mobile device
On Apple devices, under the privacy section of the settings app, users can turn off personalized ads.
Users can also ensure the "allow apps to request to track" option is turned off, which will automatically deny any requests by apps to track your activity across other apps and websites.
On Google devices, under the privacy section of the settings app, users can send a "do not track" request to websites to try and prevent them from tracking you.
Users can also delete their advertising ID.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Neo Performance Materials Hosts Prime Minister of Estonia at the New Permanent Magnet Facility in Narva
Neo Performance Materials Hosts Prime Minister of Estonia at the New Permanent Magnet Facility in Narva

Cision Canada

timean hour ago

  • Cision Canada

Neo Performance Materials Hosts Prime Minister of Estonia at the New Permanent Magnet Facility in Narva

TORONTO, May 29, 2025 /CNW/ - Neo Performance Materials Inc. (" Neo") (TSX: NEO) welcomed the Prime Minister of Estonia to its new European magnet facility in Narva. The Prime Minister was received by Greg Kroll, Neo's EVP for Magnequench, and the team responsible for equipment commissioning and overseeing production for our automotive customers. Neo will host an opening ceremony in September 2025, with the employees who have led this project, customers, government leaders from across the EU, senior diplomats from supply chain partner countries, investors, and media. Prime Minister Kristen Michal wrote on his social media: " We will make decisions that will help Estonia be a country with convenient business operations, few restrictions and a competitive tax system, where the industries of the future can be built. Neo Performance Materials is a good example of where we are heading. Neo Performance Materials is very ambitious and positive, I wish you much success and great ideas for the future!" Neo's EVP for Magnequench, Greg Kroll, said: "The Prime Minister's early visit symbolizes the importance of Neo's establishment of an integrated rare earth separation and magnetics hub in Estonia for European automotive and renewable energy supply chains. We also welcome the commitment to continue partnering with the government to unlock more opportunities and remove barriers for Neo's accelerated growth plan." On time and on budget, Neo continues to achieve significant milestones in the global expansion of its magnetics capabilities. In Phase 1 of its facility expansion, Neo successfully executed a multi-stage production process—from raw materials to final assembly—to deliver a high-performance magnet tailored for a specific traction motor platform. Phases 2 and 3 will continue Neo's growth with expanded and new facilities in Estonia and elsewhere, highlighting Neo's advanced technical and operational strength, driven by a deeply experienced global team. Leveraging over 30 years of rare earth magnetics expertise and cutting-edge lab capabilities, Neo's new facility in Estonia marks a critical step forward in one of the most strategically crucial permanent magnet projects in Europe and globally. This strategy aims to scale magnet manufacturing across Europe and beyond, advancing Neo's mission to build resilient, parallel global supply chains for rare earth magnetics and other critical materials, serving rapidly accelerating markets. About Neo Performance Materials Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials – magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys – are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that includes manufacturing facilities in Canada, China, Estonia, Germany, Thailand and the United Kingdom, as well as a dedicated research and development centre in Singapore. For more information, please visit Cautionary Statements Regarding Forward Looking Statements This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Specific forward-looking statements in this news release include, but are not limited to, the completion of construction and commissioning and launch of operations of the facility in Narva; integration of operations of the new facility in Narva, Estonia and Neo's rare earth separation facility in Sillamäe, Estonia; and other matters relating thereto. In making the forward-looking information in this news release, the Company has applied certain factors and assumptions that are based on its current beliefs as well as assumptions made by and information currently available to the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking information in this release is subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking information. There are many risk factors associated with the negotiation and drafting of a definitive offtake agreement and the terms and conditions of such agreement. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to the risks and uncertainties inherent in the nature of the Transaction, including the risks of a material adverse change to the Company's assets or revenues, or risks of unknown liabilities that may arise. Readers are cautioned not to place undue reliance on forward-looking information. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law. For more information on Neo, investors should review Neo's continuous disclosure filings that are available under Neo's profile at SOURCE Neo Performance Materials, Inc.

Is Nvidia a Millionaire-Maker Stock?
Is Nvidia a Millionaire-Maker Stock?

Globe and Mail

time17 hours ago

  • Globe and Mail

Is Nvidia a Millionaire-Maker Stock?

Over the last few decades, the American technology sector has made boatloads of millionaires -- not only for founders and CEOs, but also for the thousands of regular people who work at these companies or buy their stock. With shares up by over 23,000% over the last decade, Nvidia (NASDAQ: NVDA) is the quintessential example of this phenomenon. But as we all know, past performance doesn't guarantee future returns. And with a market cap of $3.2 trillion, Nvidia is already one of the largest companies on Earth, giving it less room to grow. Let's dig deeper to see what the future might bring for this legendary chipmaker. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Is AI becoming mainstream? While Nvidia started its life focusing on consumer video game graphics and cryptocurrency mining, both of those once-core operations have become totally overshadowed by generative AI. As of the fourth quarter, the data center segment (where Nvidia accounts for sales of cutting-edge AI chips) represented a jaw-dropping 91% of its $39.3 billion in sales for the period. This level of concentration means that a large portion of Nvidia's valuation is tied to the prospects of this one industry. If AI tech exceeds expectations, so will Nvidia. But if the sector falls flat, well -- you know the drill. Right now, it still feels too early to know how things will play out. Analysts at Jeffries seem wildly optimistic. Their research suggests that three-quarters of businesses already use generative AI in at least one function, and they expect it to drive $1.1 trillion in revenue by 2028. But investors shouldn't necessarily take these projections at face value. Even if AI becomes a part of mainstream life, there is no guarantee that big profits will follow. And this puts Nvidia's clients in a tough spot. AI companies are burning through money. Despite the hype, generative AI remains wildly unprofitable. While giants like Alphabet and Meta Platforms can hide their AI losses within their vast research and development budgets, the scale of the problem is much clearer with pure-play AI companies like OpenAI, the maker of ChatGPT. The Economist reports that while the start-up's 2024 revenue tripled to $3.7 billion, losses ballooned to $5 billion. And while OpenAI's management believes it can achieve $12 billion in cash flow by 2029, this is far from guaranteed due to the intense competition in the industry. Chinese open-source rival DeepSeek shows that competitive AI models can be created (arguably) at a fraction of the cost of their U.S. counterparts, which means early leaders may not have much of an economic moat, especially when the technology matures and the rate of model improvement slows. If profit potential shrinks, so will the market for Nvidia's expensive hardware. Nvidia will also face challenges on the hardware side of the industry as companies seek to diversify their supply chains. In April, the Trump administration effectively banned the company from selling its h20 chips to Chinese clients. While Nvidia has already started work on a new compliant chip, it is unclear if Chinese companies will be willing to build their businesses around Nvidia hardware, given the unpredictability of U.S. regulations. Rivals like Huawei are working to take market share. The easy money has already been made Nvidia is a big player in a potentially transformational industry, so there is little doubt it can continue to outperform the market over the long term (even though there will be short-term volatility). That said, the easy money has already been made. New investors shouldn't expect this legendary chipmaker to repeat the multibagger returns it enjoyed over the previous decades. You can attribute the slower progress to the challenging dynamics on both the software and hardware sides of the AI industry. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store