The Federal Trade Commission (FTC) has introduced comprehensive amendments to the decades-old law governing the tracking and advertising practices of online companies targeting children. The proposed changes aim to safeguard children's privacy by default, including turning off targeted ads for kids under 13 and placing limits on push notifications.
Background: COPPA and Its Evolution
Established in 1998 and enforced since 2000, the Children's Online Privacy Protection Act (COPPA) mandates that apps and websites geared towards children must obtain parental consent before collecting their personal information. While last updated a decade ago, COPPA now requires reform to address the evolving landscape of online tools and increasingly sophisticated digital surveillance techniques employed by companies.
FTC Chair's Statement
FTC Chair Lina Khan emphasized the importance of providing children with a safe online experience. She stated, "Kids must be able to play and learn online without being endlessly tracked by companies looking to hoard and monetize their personal data." Chair Khan expressed the necessity of the proposed changes to COPPA, particularly in an era where digital tools have become essential for daily life.
Support from Children's Online-Safety Advocates
Advocates for children's online safety have praised the FTC's proposal, recognizing its potential to limit data exploitation and protect children from targeted advertising. Katharina Kopp, Director of Policy at the nonprofit Center for Digital Democracy, commended the rules' ability to safeguard young individuals from AI-driven data collection efforts. The objective is to foster a digital environment designed for the well-being and safety of children aged 12 and under.
Key Proposed Changes
The following are some of the significant changes being proposed by the FTC:
Automatic Deactivation of Targeted Ads: Under the new regulations, targeted ads for children under 13 will be disabled by default. This measure aims to prevent companies from extensively tracking and monetizing children's personal information.
Limitations on Push Notifications: The proposed amendments also place restrictions on push notifications, further safeguarding children's privacy online.
While these key changes provide a glimpse into the FTC's proposed amendments, they represent a crucial step towards creating a safer digital environment for children.
Opt-in for targeting ads
Apps, games, and websites that are used by children will now be required to obtain "separate, verifiable parental consent" before disclosing any information about kids under 13 to third-party advertisers. This applies unless the disclosure is considered "integral" to the nature of the online service. Furthermore, these apps and games will no longer be allowed to deny access to children just because parents do not agree to the disclosure of their children's information, which is currently possible.
Limits on nudging kids to stay online
Ed-tech limits
Data retention rules
Under the proposed rules, companies will only be allowed to retain personal information for as long as it is necessary to fulfill the specific purpose for which it was collected. They will also be prohibited from using this retained information for any secondary purpose and from retaining it indefinitely. Additionally, operators will be required to establish a written, public data retention policy specifically for children's personal information.
