Antitrust Law Daily Wrap Up, PRIVACY NEWS: Commissioner McSweeny promotes online safety for children, (Nov 14, 2014)

By Greg Hammond, J.D.

FTC Commissioner Terrell McSweeny discussed the Commission’s online privacy and deceptive marketing protection efforts for children in remarks delivered at the Family Online Safety Institute Annual Conference in Washington, D.C. on November 12. In her prepared remarks, entitled “Redefining Online Safety,” the Commissioner discussed resources for parents, FTC enforcement actions taken against companies like Apple and Google, as well as recent changes to the Children’s Online Privacy Protection Act (COPPA).

“[I]t is important to remember that parents are the front lines when it comes to helping children make good choices about technology, or recover from bad ones,” the Commissioner said. Further, “allowing parents to make informed choices about when and how their children’s information is used and collected is just as—perhaps more—important today in our increasingly networked world.”

The FTC helps parents by: (1) providing resources, like its NetCetera guide, which provides explanations on different types of parental controls and encourages communication between parents and their children regarding “being online”; and (2) taking law enforcement action.

With regard to enforcement, Commissioner McSweeny discussed the recent FTC settlements with Apple and Google relating to unauthorized in-app purchases made by children, along with a similar pending case against Amazon. “The crux of the problem in these cases was that consumers—meaning the parents who were paying the bills—were not adequately informed of the fact that the apps their children were using included in-app purchase capabilities, and they were not adequately informed when children were actually making purchases, or how much these purchases cost.” The settlements require Apple and Google to pay tens of millions of dollars in refunds to parents.

She also noted the Commission’s enforcement action against Snapchat, for allegedly misleading users regarding the privacy or security of the app. The company settled FTC charges that it deceptively promised that messages would disappear forever, and that it failed to properly secure information and protect it from unauthorized access.

The FTC “also makes protecting children and parental control a priority through its administration and enforcement of COPPA,” McSweeny stated. Although some stakeholders have raised concerns about cost and the difficulty in complying with the newly amended Rule, the Commissioner noted that the FTC recently approved two new COPPA Safe Harbor programs. “We are not trying to impede innovation,” she said. “Our goal is to work collaboratively with industry to help members comply with the COPPA Rule.”

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