Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC concludes review of iVerFly’s proposed COPPA parental consent method, (Feb 25, 2014)

Following a public comment period and review of iVeriFly’s proposed Children’s Online Privacy Protection (COPPA) Rule verifiable parental consent method application, the FTC announced today that it’s approval of the company’s specific method of implementation was unnecessary. In a letter to IveriFly, the FTC stated the company’s principal method is a variation on existing valid methods of obtaining verifiable parental consent already recognized in the Rule, or recently approved by the Commission.

Under the COPPA Rule, online sites and services directed at children must obtain permission from a child’s parents before collecting personal information from that child. The rule sets forth a number of acceptable methods for gaining parental consent, but also includes a provision allowing interested parties to submit new verifiable parental consent methods to the Commission for approval. Approved methods may be used by any company, not just the particular applicant requesting approval of the method.

In its application filed in October 2013, iVerFly states the initial step used to verify identity is Social Security number verification, which is already approved under the Rule. Another step involves the use of knowledge-based authentication questions. The FTC approved knowledge-based authentication as a new verifiable parental consent method in December 2013, shortly after iVeriFly’s application was submitted.

The Commission vote was 4-0.

News: Privacy FederalTradeCommissionNews