Legal Risks of Using Mobile Analytics: How to Protect Yourself

Mobile data provides the eyes and ears of a modern business. It helps us understand where our audience is, what they want to know and what they respond to most enthusiastically. And it can make our apps run faster, too.

In a world of ever-increasing consumer choice, this kind of stuff doesn’t just matter. It’s crucial. However, while mobile data can lead to new ideas, it can also be very dangerous if not used properly. This is doubly true in the wake of the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), which gave users new rights over how their data is collected, protected and utilized.

So how do we ensure that our mobile analytics policy is fit for purpose? Well there’s no magic bullet here: instead, it’s a series of behaviors, practices and considerations which must all be added to the mix. And in this post, we’re going to cover all of them, so you have all the information at your disposal when protecting the information of others.

Part 1: What exactly are mobile analytics?

”Mobile analytics” is a broad term for the use of tools and software to gather and analyze data made by people who use mobile apps.

As companies, we use this data to enhance user experience, speed up processes, and plan future events. Analytics can, for instance, report on how individuals use an app, gather details about their traits, and track important success markers, like the number of people using an app.

Crucially, however, this information is often private, or at least it should be. Businesses must be very careful how they gather, store, and use this information to stay out of trouble with the law.

Part 2: How to protect yourself while using mobile analytics

Here are some of the most important steps, which will protect both you and your users when using mobile data:

1. Draft and publish a transparent privacy policy

Your privacy policy creates a legal foundation for how your business handles user data. This central source of truth should clearly answer the following questions:

• What kind of data do you collect?
• Why do you collect it?
• How do you store, process and share it?
• How can users control their data (e.g. through opt-out options)?

To simplify the process, use an online form to create a customizable privacy policy template, tailored to our business. Platforms like Lawrina provide carefully crafted legal templates, allowing you to create complete and professional policies without the hassle of starting from scratch.

These templates guarantee that your privacy policy aligns with current regulations, reducing non-compliance risk. A well-drafted policy keeps you compliant and builds trust with your users, showing them that their privacy is your priority.

2. Obtain explicit user consent

It’s not enough to simply assume that your users are fine with you using their data, or give them an option to opt out. Explicit, opt-in consent is the gold standard for GDPR and CCPA compliance. This means:

• Providing users with an option to opt-in before any data is collected.
• Offering transparency about what they’re agreeing to.
• Allowing users to withdraw consent whenever they choose.

Additionally you can, and should, use tools that track and manage user consent for a smoother workflow.

3. Work with trusted analytics providers

Specifically, you should choose analytics providers that prioritize compliance and have robust security protocols in place. Before integrating any third-party tools:

• Confirm that they conform to data protection standards such as GDPR and CCPA.
• Ensure they offer features like anonymization or encryption of sensitive data.

4. Minimize data collection

As a general rule, you should avoid collecting more data than necessary. Not only will this reduce your legal exposure, but it will also make users more likely to trust your business.

We’d recommend redrawing your data collection policy from scratch, and following the following steps:

• Outlining your business goals.
• Working out which data-points will directly support those goals.
• Work out where you need detailed information.
• Use anonymized data whenever detailed info isn’t essential.

5. Keep security a priority

Security, is of course, crucial to all aspects of our business, but data handling should be central to your mobile analytics practices. Anyone who read about the Ticketmaster breach which compromised the details of over 560 million users in 2024, or the Facebook hack which saw 533 million users’ data leaked online, will know exactly what we’re talking about here.

There are lots of steps you can take to secure your customers’ data, but these are the most important:

• Encrypt all user data during storage and transmission.
• Use firewalls and access control mechanisms to prevent unauthorized access.
• Regularly audit your systems to identify vulnerabilities.

6. Stay informed about evolving regulations

GDPR, CCPA and other pieces of privacy legislation aren’t supposed to be ‘set and forget’ directives. In fact, today’s privacy laws are constantly changing as our users’ needs, threats and preferences become more sophisticated.

However, you can stay ahead by:

• Monitoring new developments in data protection laws globally.
• Use legal resources and platforms to confirm that your policies and practices meet current standards (again, Lawrina is great here).

Part 3: Understanding the common legal risks of using mobile analytics

As well as adopting the specific techniques and tactics outlined above, it’s important to remain aware of the wider legal picture around mobile analytics. This will help you craft your strategies. empathize with your users and ensure that every single member of your organization takes this issue seriously.

Here are some of the most common risks to be aware of:

Data privacy violations

Failing to comply with laws like GDPR or the CCPA can result in heavy fines. For instance:

• Collecting user data without informed and explicit consent is a direct violation of GDPR.
• Sharing data with third parties without proper disclosure breaches CCPA guidelines.

Collection of personally identifiable information (PII)

Analytics tools often gather PII, such as names, emails, locations, or device IDs. This data could fall into the wrong hands without proper safeguards, leading to breaches or lawsuits. Mishandling PII can make your business liable under data protection law, even if you didn’t mishandle the data maliciously or deliberately.

Non-transparent data practices

Consumers have a clear legal right to know when, why, and how their data is used. So you need to do more than simply handle data properly; you also need to provide clarity and accountability around how you handle it.

You risk non-compliance if your business lacks a transparent privacy policy or fails to provide users with clear opt-in/opt-out choices.

International compliance challenges

If your business serves a global audience, it must adhere to varying data protection laws across regions. What works in one country may not satisfy legal requirements elsewhere, leading to discrepancies in compliance.

Remember: if you work across geographic boundaries, you must satisfy legal requirements everywhere, not simply in the country where your business is headquartered.

Inadequate data security

Weak data security measures can expose your business to cyberattacks, resulting in the loss or theft of sensitive customer data. Such breaches don’t just harm your users — they can lead to massive fines and reputational damage.

We’ve seen numerous examples of companies (literally) paying the penalty for non-compliance. For example, in 2020, a major company faced hefty penalties due to unauthorized user tracking practices.

But this isn’t just about the down-side risk. There’s also an upside here; specifically, the chance to build a connection with your users and project a positive brand image.

Transparency and compliance show your users that you respect their data and privacy. A reputation for prioritizing user rights can build loyalty and set your business apart from competitors. Remember: users are far more likely to engage with a company they perceive as trustworthy.

To sum up

While mobile analytics provide a powerful tool to grow your business, it’s important to adopt a thoughtful approach to avoid legal pitfalls. From transparent privacy policies to robust security measures, protecting your company and your users comes down to implementing best practices and staying informed.

Lawrina’s templates for privacy and compliance provide a great foundation to remove the guesswork. These tools help you meet today’s core legal requirements while focusing on matters of success, such as successfully scaling your business.

Above all, you should prioritize user trust, and make compliance a non-negotiable part of your mobile analytics workflow. By taking these steps, you’ll avoid legal risks and build a strong foundation for sustainable growth in the digital age.