In 2023, a proposed amendment to the Children’s Online Privacy Protection Act (COPPA) marked a significant step forward in safeguarding children’s privacy online. This update aimed to address the evolving landscape since the last revision in 2013, which primarily focused on social media and mobile devices.
The proposed changes targeted the nudging of children to prolong their online activities and aimed to curtail the collection of data from children using their parents’ devices. To achieve this, businesses faced new requirements, particularly concerning behavioral advertising. The default setting for behavioral advertising would be disabled, unless businesses obtained separate, verifiable consent from parents to disclose information to third parties, including advertisers.
One notable aspect of the proposed update involved restrictions on push notifications. System operators and businesses would be prohibited from sending push notifications to entice children to use their services or games more frequently. Additionally, operators utilizing children’s information for push notifications had the obligation to explicitly disclose this practice in their COPPA-mandated direct and online notices.
Overall, these proposed changes aimed to provide additional layers of protection for children in the online space, emphasizing transparency, consent, and limitations on potentially manipulative practices targeting young users.
Most importantly, whether or not parents do get it, the 2023 proposed update aims to “strengthen COPPA’s existing standards by making it clear that operators can hold on to kids’ personal information only for as long as necessary to fulfill the purpose for which it was collected—and they for sure can’t hold on to it indefinitely or use it for any secondary purpose.”
Cybercrime stands as the predominant source of financial loss resulting from private criminal activities worldwide, with an estimated $10 trillion in damages attributed to identity theft, data breaches, and related offenses in the current year alone.
In response to this escalating threat, the recently introduced COPPA rules aim to mandate distinct, explicit data security policies specifically tailored to the management and storage of children’s information. This initiative underscores the growing recognition of the need for enhanced safeguards against cyber threats, particularly concerning the vulnerability of minors in the digital landscape.
Notably, the enforcement of these rules falls under the jurisdiction of a federal regulatory agency rather than a legislative mandate, allowing for an open comment period. During this period, the Federal Trade Commission (FTC) received nearly 200,000 comments, indicative of a substantial and urgent societal demand for more rigorous controls over the handling of childhood data. This widespread engagement reflects a collective concern within the American public, emphasizing the imperative to fortify measures against potential risks associated with the digital exploitation of children’s information.
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