While AppLovin is involved in a lawsuit with Unity, the authorities in San Diego County, USA, have turned against it. The reason for this is the company’s advertising practices.
Officials allege that AppLovin illegally collects data from children even when parental control options are enabled and tracking by ad networks is prohibited. They claim the company uses a method called fingerprinting to acquire information that allows it to accurately determine where children live and study, whether they are asleep at certain times, and much more.
According to the lawsuit, the collected data is uploaded by AppLovin into an “AI-based advertising engine,” enabling it to display ads in children’s games.
Nevertheless, the San Diego authorities noted that this is only part of the problem. Officials found that young gamers often see advertisements they shouldn’t be exposed to. For instance, in children’s games, there is allegedly advertising content of a sexual nature, as well as ads for alcohol and drugs. As evidence, the authorities included screenshots of such creatives from a six-year-old child’s smartphone, taken while parental control was active.
It is worth noting that the San Diego lawsuit partially repeats allegations made against AppLovin by several short sellers in February 2025. At that time, data collection from children was only one of the complaints against the company, alongside inflating ad metrics and using manipulative tactics. Later, based on these complaints, the U.S. Federal Trade Commission initiated an investigation into AppLovin, but apparently found no violations. As reported by AppLovin’s CFO Matt Stumpf in August 2026, the agency decided not to impose any sanctions on the company after the investigation.
AppLovin representatives have not publicly commented on the lawsuit.