coppa news

  

Trying to keep pace with developments in internet-connected toys and other devices for children, the Federal Trade Commission (“FTC”) announced June 21, 2017 that it has updated its guidance, a “Six-Step Compliance Plan for Your Business,” for complying with the Children’s Online Privacy Protection Act (“COPPA”). COPPA is intended to help parents control what information is collected from young children. The FTC’s updated guidance, which is intended to help businesses understand when COPPA applies and how [click for more]

Source: Hey, Alexa: What’s New in Children’s Privacy?… FTC Updates COPPA Guidance | The National Law Review

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The FTC staff published today a “Six-Step Compliance Plan” for businesses to comply with the Children’s Online Privacy Protection Act (COPPA). The guidance, which provides a useful framework for businesses, states explicitly that COPPA applies to connected toys and other devices that collect personal information from children over the Internet.

Source: FTC Staff Publish COPPA Guidance for Businesses | The National Law Review

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All these years watching COPPA languish over the large enough to drive a truck through “Actual Knowledge” loophole I find out that I missed something big time. Go for the money not for the lawmakers.

 

Several advertisers have left YouTube after their ads were shown before clips of scantily clad children, a finding first reported by U.K.’s The Times.

Source: YouTube hit with ad defection over predatory child videos

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The Federal Trade Commission is providing additional guidance on how the Children’s Online Privacy Protection Rule applies to the collection of audio voice recordings by organizations covered by the law, which requires certain operators of commercial websites or online services to obtain parental consent before collecting personal information from children under 13.

The FTC updated the COPPA Rule in 2013, adding several new types of data to the definition of personal information, including a photograph, video or audio file that contains a child’s image or voice, to data already covered, such as a name, address or Social Security number. This update has prompted some questions about the application of this requirement when a child’s voice is collected for the sole purpose of instructing a command or request.

In a new policy enforcement statement, the FTC noted that the COPPA rule requires websites and online services directed at children to obtain verifiable parental consent before collecting an audio recording. The Commission, however, recognizes the value of using voice as a replacement for written words in performing search and other functions on Internet-connected devices.

The FTC will not take an enforcement action against an operator for not obtaining parental consent before collecting the audio file with a child’s voice when it is collected solely as a  replacement of written words, such as to perform a search or to fulfill a verbal instruction or request – as long as it is held for a brief time and only for that purpose.

The Commission noted that there are important limitations to this policy. The policy does not apply when the operator requests information via voice that would otherwise be considered personal information, such as a name. In addition, an operator must still provide clear notice of its collection and use of audio files and its deletion policy in its privacy policy. Also, the operator may not make any other use of the audio file before it is destroyed and the policy does not affect the operator’s COPPA compliance requirements in any other respect.

The Commission voted 2-0 to approve the new policy statement.

The FTC has actively enforced the COPPA Rule, bringing more than two dozen cases since it was first issued in 2000. Most recently, the FTC reached settlements with a mobile advertiser that deceptively tracked the locations of children without parental consent and against two app developers that allowed third-party advertisers to collect information about children without parental consent.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

By Lesley Fair

If you think Ed Tech is the gruff guy in the polo shirt who set up your network, you’re missing out on a revolution happening right now in America’s classrooms. With more than half of K-12 students able to access school-issued personal computing devices, Ed Tech – educational technology – is changing the way kids learn. The benefits are obvious, but it’s also raised questions about how the Children’s Online Privacy Protection Rule (COPPA) and the Family Educational Rights and Privacy Act (FERPA) apply.

Read more >
JD Supra (press release)
FTC Increases Maximum Civil Penalties for HSR Act, COPPA, and Other Violations from $16000 to $40000 JD Supra (press release) On June 30, 2016, the Federal Trade Commission (FTC) issued an interim final rule that substantially increases the maximum civil penalties for violations of the competition and consumer protection laws enforced by the FTC that authorize the assessment ... and more »

Company Will Pay $950,000 For Tracking Children Without Parental Consent

Singapore-based mobile advertising company InMobi will pay $950,000 in civil penalties and implement a comprehensive privacy program to settle Federal Trade Commission charges it deceptively tracked the locations of hundreds of millions of consumers – including children – without their knowledge or consent to serve them geo-targeted advertising.

The FTC alleges that InMobi mispresented that its advertising software would only track consumers’ locations when they opted in and in a manner consistent with their device’s privacy settings. According to the complaint, InMobi was actually tracking consumers’ locations whether or not the apps using InMobi’s software asked for consumers’ permission to do so, and even when consumers had denied permission to access their location information.

The FTC alleges that InMobi, whose advertising network has reached more than one billion devices worldwide through thousands of popular apps, offers multiple forms of location-based advertising to its customers, including the ability to serve ads to consumers based on their current locations, locations they visit at certain times, and on their location over time.

“InMobi tracked the locations of hundreds of millions of consumers, including children, without their consent, in many cases totally ignoring consumers’ express privacy preferences,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “This settlement ensures that InMobi will honor consumers’ privacy choices in the future, and will be held accountable for keeping their privacy promises.”

The complaint alleges that inMobi created a database built on information collected from consumers who allowed the company access to their geolocation information, combining that data with the wireless networks they were near to document the physical location of wireless networks themselves. InMobi then would use that database to infer the physical location of consumers based on the networks they were near, even when consumers had turned off location collection on their device.

The FTC alleges that InMobi also violated the Children’s Online Privacy Protection Act (COPPA) by collecting this information from apps that were clearly directed at children, in spite of promising that it did not do so. The complaint noted that InMobi’s software tracked location in thousands of child-directed apps with hundreds of millions of users without following the steps required by COPPA to get a parent or guardian’s consent to collect and use a child’s personal information.

Under the terms of its settlement with the FTC, InMobi is subject to a $4 million civil penalty, which is suspended to $950,000 based on the company’s financial condition. In addition, the company will be required to delete all information it collected from children, and will be prohibited from further violations of COPPA.

In addition, InMobi will be prohibited from collecting consumers’ location information without their affirmative express consent for it to be collected, and will be required to honor consumers’ location privacy settings. The company will also be required to delete the location information of consumers it collected without their consent and will be prohibited from further misrepresenting its privacy practices. The settlement also will require InMobi to institute a comprehensive privacy program that will be independently audited every two years for the next 20 years.

The Commission vote to authorize the staff to refer the complaint to the U.S. Department of Justice and to approve the proposed stipulated order was 3-0. The DOJ filed the complaint and proposed stipulated order on behalf of the Commission in U.S. District Court for the Northern District of California.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. Stipulated orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).  Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

Today’s huge news that the FTC has settled COPPA violation cases with two small app developers with civil penalties totaling $360,000 came as quite a surprise. Since it has been nearly two and a half years since the updated COPPA became law, many had written off the FTC ever enforcing COPPA.

Source: Gamasutra: Roy Smith’s Blog – The FTC has finally enforced COPPA 2.0. Here’s what you need to know.

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