Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC files amicus brief on whether COPPA preempts state privacy laws regarding teenagers, (Mar 24, 2014)
Organizations Mentioned:Facebook | Facebook, Inc.
By Linda O’Brien, J.D., LL.M.
The FTC has filed an amicus brief with the U.S. Court of Appeals for the Ninth Circuit on March 20, contending that a federal district court ruling that the Children’s Online Privacy Protection Act (COPPA) preempted state privacy laws regarding children between ages 13 and 18 was incorrect (Batman v. Facebook, Inc., Case No. 13-16819).
The case is a class action suit against Facebook over its use of the names and likenesses of teenagers in the “Sponsored Stories” program allegedly without their consent. The district court, in approving a settlement in the class action suit, ruled that objections raised by some potential class members regarding California state law were not valid. The court ruled that provisions of the COPPA relating to children under age 13 preempted state laws with respect to the privacy of children older than 13. The FTC submitted the brief to oppose that view of federal preemption.
COPPA is designed to protect the privacy of children under the age of 13 in the online environment. According to the FTC brief, COPPA’s express preemption provisions do not apply to state privacy protections for teenagers, who are not covered by the COPPA. The district court, in basing its ruling on the language in the preemption provision, misconstrued the provision to apply to the online activities of all minors, regardless of age. While the provisions displace some state laws, there was no evidence in the language, structure, or legislative history of COPPA that indicates Congressional intent to displace state protections of teenagers’ online privacy in their entity.
The FTC also asserted that state privacy protections for teenagers were not subject to implied preemption. COPPA was enacted in the shadow of state privacy laws, including state protections particular to minors. The Act expressly contemplated a significant role for the states in protecting children’s online privacy. As such, state law protections of teenagers’ online privacy complement, rather than obstruct, Congress’ purposes and objectives in enacting the statute.
The FTC filing does not address the merits of the underlying class action suit or the merits of the settlement. The Commission vote approving the filing of the amicus brief was 3-0-1, with Commissioner Ohlhausen abstaining.
Companies: Facebook, Inc.
News: Antitrust