Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC rejects AgeCheq’s proposed COPPA verifiable parental consent method, (Nov 24, 2014)

By Greg Hammond, J.D.

The FTC has denied AgeCheq, Inc.’s application proposing a verifiable parental consent method under the Children’s Online Privacy Protection (COPPA) Rule. The Rule requires online websites and services that are directed at children under the age of 13 years, or that knowingly collect, use, or disclose personal information of children, to obtain parental permission prior to collecting any personal information from children.

AgeCheq—a company that provides tools to assist mobile device users in managing their private data—proposed a real-time common consent mechanism that conducts parental identity verification in two ways, pursuant to COPPA. The first method of verifying parental identity, according to the Commission’s rejection letter, involves a financial transaction, and the second method involves parents printing, signing, and returning a declaration form. In rejecting the application, the Commission concluded that both of the proposed methods are already recognized ways of obtaining verifiable parental consent under the Rule.

Nevertheless, AgeCheq has submitted a second application for parental consent method. The Commission is therefore seeking public comments on the second application, regarding: (1) whether the proposed method constitutes a new methodology, or whether it is already an existing method; (2) whether the proposed parental consent method meets the requirements for parental consent, and whether it is reasonably calculated to ensure that the individual providing consent is the child’s parent; and (3) whether the proposed method poses a risk to consumers’ personal information. Comments must be submitted on or before December 29, 2014.

Companies: AgeCheq, Inc.

News: Privacy FederalTradeCommissionNews