FTC proposes new rules to curb monetization of children's data

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The Federal Trade Commission (FTC) has proposed new changes to the regulations it currently applies under the Children's Online Privacy Protection Act (COPPA), seeking to further limit the collection and use of children's data by technology companies, especially when used for targeted advertising. “Children should be able to play and learn online without being endlessly tracked by companies seeking to hoard and monetize their personal data,” FTC Chair Lina Khan said in the official announcement. According to Khan, the proposed changes would prevent companies from “outsourcing their responsibilities to parents” when it comes to managing children's data.

According to the FTC, the agency received more Thailand Phone Number List than 175,000 public commentswhen it began its most recent review of its regulations under COPPA. That same year, the regulator imposed hundreds of millions of dollars in combined fines on YouTube and TikTok (the vast majority of YouTube) for data mishandling. of user ages 13 years and younger. The revised COPPA regulations are generally less extreme than these bills, which is not surprising since, in theory, agency regulations are crafted within the confines of what Congress has already authorized. While many of these bills target user behavior and can directly impact personal privacy, the FTC's proposed rules instead target data collection, specifically, the data of users under 13 years of age.



For example, companies would not be able to include children in targeted ads by default and would need to separate verifiable parental consent” to disclose data to third parties, unless strictly necessary for the service or website. Companies would also not be allowed to withhold services if those children do not consent to targeted advertising. Companies would also have to justify why they want to have persistent identifiers on hand and would be prohibited from using them in push notifications to encourage children to return to their apps when they are not actively using them. The proposed rule changes include additional limits on data retention.