Report from the Federal Trade Commission
While it’s normal for an app to ask permission to access third-party information on your phone, say for instance address book info, what data you collect is crucial. This is why app development companies are subjected to COPPA, a federal law that says you must obtain “verifiable parent consent” if children under 13 use your app. Else, you can be fined.
It’s a Matter of Gaining Confidence
A recent survey found that 57 percent of all app users have either uninstalled an app over concerns about having to share their personal information. Meanwhile, there are crowd sourced policing tools in place now as such TOS, DR, Privacy Choice, etc to build confidence. Thanks to it as it establishes a level of trust with your user base that has positive effects on retention, and may even give you a competitive advantage.