Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC updates compliance guidance for Children’s Online Privacy Protection Act, (Jul 17, 2014)

By Linda O’Brien, J.D., LL.M.

The FTC yesterday issued updated advice for app developers and app stores to guide their efforts to comply with parental notification and consent requirements before collecting personal information from children, under the agency’s Children’s Online Privacy Protection Act (COPPA).

The FTC’s “Complying with COPPA: Frequently Asked Questions (FAQs)” is the principal means by which the agency provides compliance guidance for its children’s online privacy regulation. The latest updates related to how to obtain verifiable parental consent.

The updates state that the submission of credit card information, outside of an actual financial transaction, can be part of the evidence needed to prove that the person providing consent is actually the parent, and not the child. The updates also address the ability of app developers to rely on app stores to carry out the parental authentication and consent process, while not imposing liability on the app stores for the privacy practices of the app operators for whom they obtain consent.

In a statement released yesterday, Morgan Reed, executive director of ACT, a trade association which represents computer software, hardware, and consulting companies, noted that his organization has been meeting with the FTC over the past year seeking more clarity with regard to COPPA compliance. “With the Commission now providing a better explanation of the regulatory landscape, we expect innovation and investment in children’s education apps to grow markedly,” he said. Reed also stated that the updated FTC guidance specifically allows for new ways to seek parental consent, including credit card verification, and allows platform developers to create new mechanisms for consent without being classified as an operator. In Reed’s view, more companies will embrace the opportunity to make engaging and educational apps for children.

News: Privacy FederalTradeCommissionNews