Ftc Ramps Up Coppa Enforcement And Regulations For Sites That Are Directed To Children

The Federal Trade Commission (FTC) recently delivered strong messages to mobile application

developers and to operators of websites and other online services directed to children that the FTC is ever vigilant in protecting children from inappropriate collection and use of their personal information, including taking into account new technological changes.

These messages were delivered both in the form of an enforcement action and with proposed modifications to The Children's Online Privacy Protection Act (COPPA) which provides parents with control over the collection of personal information from their children under age 13 (U-13s).

COPPA In A Nutshell

COPPA prohibits the unauthorized collection of personal information from U-13s by operators of websites or online services.

Specifically, COPPA requires websites and online services that are either directed to, or knowingly collect data from, U-13's to:

* post a Privacy Policy that provides clear notice of information collection practices; and

* provide notice to, and verifiable consent from, parents prior to collection of personal information from U-13s.

The FTC Enforcement Action

In the first FTC case involving mobile applications (Apps), the FTC alleged that the developer and marketer of mobile Apps failed to comply with COPPA's requirements regarding the posting a Privacy Policy notice and obtaining prior, verifiable consent from parents of U-13s.

The app developer distributed mobile Apps that allowed U-13s to play games and share personal information online. The FTC alleged that several of the Apps were specifically directed to children, in part due to the fact that the Apps were listed in the Games-Kids section of Apple's App Store. As part of the settlement of the case, the App developer agreed to pay a $50,000 penalty.

The settlement made it clear that, despite the small screen size of mobile devices, the FTC still requires App developers to find a way to comply with COPPA.

Proposed COPPA Modifications

Not long after its settlement regarding mobile Apps, the FTC proposed modifications to COPPA designed to stay abreast of technological changes.

The proposed COPPA modifications fall into five specific categories.

* Definitions - "personal information" subject to COPPA would include location information, IP addresses, and customer numbers recorded in cookies.

* Notice - requirements for notice would be streamlined; however, they would require all operators of a website or online service to provide contact information, as distinguished from the current practice of designating a single operator as contact person.

* Parental Consent - the current "email plus" method would be replaced with new methods that would require FTC approval.

* Privacy and Security - regarding any third party to whom personal information of U-13's is transferred, website and online service operators would be required to ensure that these third parties have reasonable procedures to maintain the privacy, security, and integrity of personal information.

* Safe Harbor Programs - approved safe harbor programs would be required to report of their oversight of operators.

Conclusion

The FTC enforcement action sends a clear message to App developers that COPPA applies to them, despite the small screen size of most mobile devices.

The proposed modifications to COPPA also send a clear message to operators of websites and online services directed to children that the FTC has not lost its focus in protecting children from inappropriate collection and use of their personal information, including taking into account new technological changes.

by: Chip Cooper

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