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Children's Online Privacy Protection Act

2000 American federal cyber law

  • 19 min read
  • 6 chapters

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Through Child, Website and Social media

Although children under 13 can legally give out personal information with their parents' permission, many websites, particularly social media sites, but also other sites that collect most personal info, disallow children under 13 from using their services altogether due to the cost and work involved in complying with the law.

Background

In the 1990s, electronic commerce was on its rise of popularity, but various concerns were expressed about the data collection practices and the impact of Internet commerce on user privacy—especially for children under 13, because very few websites had their own privacy policies. The Center for Media Education petitioned the Federal Trade Commission (FTC) to investigate the data collection and use practices of the KidsCom website, and take legal action since the data practices violated Section 5 of FTC Act concerning "unfair/deceptive practices." With the passing of the Drivers Privacy Protection Act in 1997, new precedents had been set in regard to the ability of congress to regulate information held by state agencies. After the FTC completed its investigation, it issued the "KidsCom Letter". The report stated that the data collection and use practices were indeed subject to legal action. This resulted in the need to inform parents about the risks of children's online privacy, as well as to parental consent necessity. This ultimately resulted in the drafting of COPPA.

COPPA was passed in 1998 and took effect reportedly in April 2000. The rule was issued by the Federal Trade Commission, and it is updated quite frequently to stay up to date with new technological advancements. The Federal Trade Commission (FTC) is an agency that works to protect people from illegal practices, scammers, create protection rules, and ensure they are helping people protect their data and information. COPPA was necessary because it has been reported that 89% of children's websites were taking personal information, and many of those websites were not giving privacy notices. Parents were not very involved with their children's website uses or made aware of the dangers of their children's private information being taken without knowledge.

The new millennium ushered in an era of regulation that many were simply unaware of. The early years of the transition were fraught with confusion and a lot of animosity. One of the main concerns of the time was the eventual accessibility of child-based websites at the fear many were unwilling to change their business practices. Many were left with a series of loose guidelines that determined what was correct. The simplification of COPPA provided by the FTC was met with a follow-up of demands to law enforcement that the: "... Commission should continue law enforcement efforts by targeting significant violations and seeking increasingly larger civil penalties, when appropriate, to deter unlawful conduct". A mandatory review of the COPPA regulations were conducted in 2005 (resulting with no changes to the original guidelines), found that there were no adverse effects to the online landscape.

The Federal Trade Commission (FTC) has the authority to issue regulations and enforce COPPA. Also, under the terms of COPPA, the FTC-designated "safe harbor" provisioning is designed to encourage increased industrial self-regulation. Under this provision, industry groups and others may request Commission approval of self-regulatory guidelines to govern participants' compliance, such that website operators in Commission-approved programs would first be subject to the disciplinary procedures of the safe harbor program in lieu of FTC enforcement. As of June 2016, the FTC has approved seven safe harbor programs operated by TrustArc, ESRB, CARU, PRIVO, Aristotle, Inc., Samet Privacy (kidSAFE), and the Internet Keep Safe Coalition (iKeepSafe). In August 2021, Aristotle, Inc. withdrew from the safe harbor program after FTC staff expressed serious concerns about its enforcement of its safe harbor provisions and communicated their intent to recommend the revocation of Aristotle's approval to run a safe harbor program. The FTC also announced its intention to more closely scrutinize the practices of the other six present safe harbors.

In September 2011, the FTC announced proposed revisions to the COPPA rules, the first significant changes to the act since the issuance of the rules in 2000. The proposed rule changes expanded the definition of what it meant to "collect" data from children. The proposed rules presented a data retention and deletion requirement, which mandated that data obtained from children be retained only for the amount of time necessary to achieve the purpose that it was collected for. It also added the requirement that operators ensure that any third parties to whom a child's information is disclosed have reasonable procedures in place to protect the information.

In 2013, the COPPA rules were updated due to the increase in children's use of the internet and mobile devices. The 2013 revision expanded the types of online services and categories of personal information covered by the rules, and reinforced that verifiable parental consent was required for collecting personal information on child-directed platforms. The FTC reviews rules and regulations every ten years, but due to the constant evolution of technology, it opened for review again in 2019.

The act applies to websites and online services operated for commercial purposes that are either directed toward children under 13 or have actual knowledge that children under 13 are providing information online. Most recognized non-profit organizations are exempt from most of the requirements of COPPA. However, the Supreme Court ruled that non-profits operated for the benefit of their members' commercial activities are subject to FTC regulation and consequently COPPA as well. The type of "verifiable parental consent" that is required before collecting and using information provided by children under 13 is based upon a "sliding scale" set forth in a Federal Trade Commission regulation that takes into account the manner in which the information is being collected and the uses to which the information will be put.

With technological advancements, children have become more accustomed to using online services in their everyday lives. Though COPPA tries to keep children's personal information and data safe, enforcement remains inconsistent. There are many apps and websites that are accessible by children that do not comply with COPPA rules. Furthermore, even if those apps do have terms and conditions that correlate with COPPA rules, many times the terms are vast and not legible by the children. Many privacy policies do not disclose the extent of information they are sharing to a third party. Many times developers are unaware of the target audience their app or website will reach, making it more difficult to incorporate COPPA rules to protect children. This can expose children to privacy risk and lead to leaking sensitive information. Studies have shown that data taken from children has been provided to third-party advertising, which leads to promoting content that leads to impulse spending or promoting unhealthy products.

COPPA 2.0 was introduced to expand the age range covered by COPPA to minors under 17. It was introduced in the Senate alongside the Kids Online Safety Act (KOSA). Both KOSA and COPPA 2.0 passed the Senate on a 91–3 vote on July 30, 2024. COPPA 2.0 would have required youth aged 13, 14, 15 or 16 to consent to the processing of their own data, but would not have required the parents of 13-16 year olds to consent to the data processing. COPPA 2.0, as well as KOSA, had not passed the House when the 118th US Congress expired on January 3, 2025. It was reintroduced in the Senate and passed unanimously in March 2026.

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