Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC Rejects Requests to Delay July 1 Effective Date for Children’s Online Privacy Protection Rule Amendments, (May 6, 2013)

By Jeffrey May, J.D.

The FTC has denied requests to delay the effective date of amendments to the Children’s Online Privacy Protection Rule (COPPA rule) that are set to take effect on July 1. In a letter issued today to the interest groups requesting the delay, the FTC explained that "the more than six-month time period between issuance of the amended Rule and its effective date is adequate." Some of the interest groups sought a delay in the effective date until December 31, 2013, or later.

In December 2012, the FTC announced the amendments, which were intended to strengthen children's privacy protections and give parents greater control over the personal information that websites and online services collect from children under 13. The amendments broaden the types of information as well as the entities that are subject to the COPPA rule.

The amendments expand the definition of "personal information," the collection of which triggers COPPA responsibilities, to clarify that it includes geolocation information, photographs, and videos. In addition, the rule was extended to cover persistent identifiers like IP addresses and mobile device IDs. Moreover, the amended rule may cover an operator of a child-directed site or service where it integrates outside services, such as plug-ins or advertising networks, that collect personal information from its visitors. The rule covers a plug-in or ad network when it has actual knowledge that it is collecting personal information through a child-directed Web site or online service. Further, under the amended rule, child-directed sites and services can be held liable for third-party collection of personal information.

The petitioners seeking the delay included the Internet Association, the Interactive Advertising Bureau, the U.S. Chamber of Commerce, and the Application Developers Alliance. There also was a petition submitted on behalf of 19 trade groups. A number of other groups, including the Consumer Federation of American and Consumers Union, filed a petition, asking the FTC to deny the requested delay.

The Commission refused to delay the effective date because the petitioners did not raise any concrete facts to demonstrate that a delay was necessary. Moreover, sufficient guidance was provided regarding the obligations the amended rule would impose on COPPA-covered entities, according to the FTC.

Companies: Internet Assn.; Interactive Advertising Bureau; U.S. Chamber of Commerce; Application Developers Alliance.

News: Privacy ConsumerProtection FederalTradeCommissionNews