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FTC Proposes Revisions for COPPA

The Federal Trade Commission has proposed revisions that will bring the Children’s Online Privacy Protection Act in line with 21st century technology, largely targeting social networks and online advertisers.

By Alice Cheng

Based on comments solicited last year, the Federal Trade Commission (FTC) has posted proposed revisions to the Children’s Online Privacy Protection Act (COPPA). The Act, which has not been updated since its inception in 1998, may be extended to include social networks and online advertisers.

According to the current regulations, COPPA applies only to website operators who know or have reason to know that users are under the age of 13, requiring the sites to obtain parental consent before any collection of data. In the past decade, an increased ability to harvest consumer information has necessitated revisions. In a FTC staff report conducted earlier this year, the Commission addressed a growing need for app stores and app developers to provide more information regarding their data collection practices to parents. With the proposed changes posted today, the FTC plans to update COPPA to respond to modern concerns surrounding social networking sites, advertising networks, and applications. Under the proposed changes, such third parties may be held responsible for unlawful data collection practices when they know or have reason to know that they are connecting to children’s websites. Mixed audience websites may have to screen all visitors in order for COPPA regulations to apply to users under 13 years of age. Additionally, restrictions on advertising based on children’s online activity may be tightened.

The FTC will be accepting public comment to the proposed rules via the FTC website. Comments will be accepted until September 10, 2012.