The $4mn penalty was reduced, keeping in mind the company’s financial condition. The Federal Trade Commission stated that InMobi was building a database of users, tracking user location and other details, without appropriate permissions. InMobi also collected data from Children specific apps, without permission from parents. The FTI hence claimed violation of the Children’s Online Privacy Protection Act. The penalty includes deletion of the database so created, and setting up an audit for the privacy policies, every 2 years, for the next 20 years.