The US Federal Trade Commission (FTC) has updated the rules for protecting children’s confidentiality on the Internet, introducing the requirement for parental consent for targeted advertising. The new rule, which will come into effect 60 days after publication in the federal register, also limits the storage period of children’s data.
These changes aim to prevent the misuse of minors’ data and modernize the existing Children’s Online Privacy Protection Act (Coppa) from 2000. Discussions on the updated rule have been ongoing since December 2023 and have garnered significant interest from advocates of children’s rights and online privacy.
While the FTC has supported the new rule, there have been disagreements on certain points, such as banning unlimited data storage and requiring coordination for sharing information with third parties. With the expectation of a new member appointment to the commission, a Republican majority is anticipated.
The proposed changes also included a ban on sending push notifications to children without parental notification, although this was ultimately rejected. Additionally, the proposal to prohibit the commercial use of data collected by educational technology providers, despite data leak scandals, was not adopted.
According to a study by Internet Safety Labs, 96% of educational apps transmit children’s data to advertisers and analytical companies in 78% of cases. The FTC has previously expressed its intention to increase monitoring in this area, particularly in educational settings where the use of such tools is common.
One of the key changes in the updated Coppa rule is the requirement that children’s data can only be stored for the time necessary to achieve a specific purpose. The definition of personal data has also been expanded to include biometric and state identifiers.