FTC Proposes More Stringent Rules Protecting Privacy of Children Online

The FTC on Wednesday unveiled proposed changes to children’s privacy law rules, including more stringent requirements for obtaining parental consent and limits on how platforms can monetize children’s data. The agency issued an NPRM seeking comment on potential changes to the Children’s Online Privacy Protection Rule. The changes would require platforms and apps to “obtain separate verifiable parental consent to disclose information to third parties including third-party advertisers -- unless the disclosure is integral to the nature of the website or online service.” The agency would ban websites from “collecting more personal information than is reasonably necessary for a child to participate in a game, offering of a prize, or another activity.” In addition, it would prohibit operators from “using online contact information and persistent identifiers collected under COPPA’s multiple contact and support for the internal operations exceptions to send push notifications to children to prompt or encourage them to use their service more.” The agency is considering specifying that personal information can be retained “only for as long as necessary to fulfill the specific purpose for which it was collected.” The commission voted 3-0 to issue the NPRM. The public will have 60 days to comment after the notice's Federal Register publication. “Kids must be able to play and learn online without being endlessly tracked by companies looking to hoard and monetize their personal data,” FTC Chair Lina Khan said in a statement. “The proposed changes to COPPA are much-needed, especially in an era where online tools are essential for navigating daily life -- and where firms are deploying increasingly sophisticated digital tools to surveil children.” In a statement Wednesday, Sens. Ed Markey, D-Mass., and Bill Cassidy, R-La., said the FTC proposal is “critical to modernizing online privacy protections” but shouldn’t be seen as a replacement for legislation. Markey and Cassidy wrote legislation updating children’s privacy law (see 2303220064).