The article is written by Adv. Siddhant Jain.
The Children’s Online Privacy Protection Act of 1998 (hereafter referred to as “COPPA”) was enacted to protect the privacy of children under 13 years of age on the Internet. This legislation is crucial in safeguarding the personal information of young users in an increasingly digital world. Enforced by the Federal Trade Commission (FTC), COPPA sets strict guidelines for the collection, use, and disclosure of personal information from children.
Key Definitions Under the Children’s Online Privacy Protection Act
Understanding COPPA begins with grasping the key definitions provided in the regulation:
- Child: An individual under the age of 13.
- Operator: Any person or entity that operates a website or online service and collects or maintains personal information from users. Nonprofits are generally exempt unless they engage in commercial activities.
- Personal Information: This includes identifiable information such as a child’s full name, address, email, phone number, Social Security number, and other identifiers like IP addresses, geolocation data, and multimedia files containing a child’s image or voice.
Applicability of COPPA
A fundamental issue, given the worldwide reach of the Internet, is whether websites and online services created and run internationally must adhere to COPPA. Yes, foreign-based websites and online services that intentionally target children in the United States or gather personal information from children in the country are required to abide with COPPA. If these foreign companies conduct business within the borders of the United States or its territories, they fall within the term of “operator” under the statute. Furthermore, COPPA also applies to U.S.-based websites and services that gather data from minors abroad.
Collection, Use, and Disclosure of Personal Information
COPPA defines the collection of personal information as any action that results in obtaining personal data from a child. This can occur through direct requests for information, enabling a child to make information publicly available, or passive tracking of their online activities.
Operators are strictly regulated in how they collect, use, and disclose children’s personal information. Specifically, they must:
- Provide Clear Notice: Operators must clearly inform parents about what information is being collected from their children, how it will be used, and with whom it may be shared.
- Obtain Verifiable Parental Consent: Before collecting personal information from children, operators must obtain verifiable consent from a parent. This ensures that parents are aware and agree to the collection and use of their child’s data.
- Allow Parental Review and Control: Parents must have the ability to review the personal information collected from their child, prevent its further use, or request its deletion.
- Protect Information Security: The operators are required to establish and maintain reasonable security procedures to protect the confidentiality, security, and integrity of children’s personal information.
Parental Rights and Responsibilities
COPPA empowers parents by giving them control over the personal information collected from their children. Parents must be directly notified about an operator’s data collection practices and must provide consent before any data is collected. They also have the right to:
- Review Information: Parents has the right to request, to see the types of personal information that is collected from their child by the website.
- Revoke Consent: Parents has right to revoke their consent at any time and can request the operator to delete the child’s personal information.
- Opt-Out: Parents has right to prevent further collection or use of their child’s personal information.
Compliance Requirements for Operators
Operators must comply with several requirements under COPPA, including:
- Notice Requirements: Operators must provide direct notice to parents, ensuring they are informed before any personal information is collected from a child.
- Parental Consent Methods: Various methods are accepted for obtaining parental consent, including signed consent forms, credit card verification, or video conferencing.
- Safe Harbor Programs: Operators may seek approval from FTC-approved safe harbor programs for their parental consent methods, offering an additional layer of compliance security.
Exceptions to Parental Consent
While COPPA generally requires parental consent before collecting personal information from children, there are exceptions. For instance, when an operator collects only a parent’s online contact information to notify them or when collecting a persistent identifier solely for internal operations, consent may not be required.
What are the Consequences of Violating the Rule?
A court may impose civil penalties on operators who breach the Rule, up to $51,744 for each violation. When determining the extent of the penalties, the FTC (Federal Trade Commission) takes into account a number of factors, such as the gravity of the violations, whether the operator has broken the Rule before, the number of children impacted, the quantity and kind of personal information gathered, the way the information was used, whether it was shared with outside parties, and the size of the business. Case-by-case analysis determines the ultimate sentence. The FTC has decided not to file a civil penalty in certain cases, but in other cases, the fine has been in the millions of dollars.
Conclusion
The COPPA (Children’s Online Privacy Protection Act) is a critical tool in protecting children in the digital age. By understanding and complying with COPPA, operators can ensure they respect the privacy rights of young internet users while providing parents with the tools they need to safeguard the childs personal information. As the online landscape continues to evolve, COPPA remains a cornerstone of children’s privacy rights in the United States.
For More Information Please refer the following:
- https://www.ftc.gov/business-guidance/resources/complying-coppa-frequently-asked-questions
- https://ecfr.gov/current/title-16/chapter-I/subchapter-C/part-312
- https://vakalattoday.com/understanding-the-exceptions-to-prior-parental-consent-under-coppa/
Meet Siddhant Jain, a lawyer who thrives in the wild world of Business and Commercial Law—where boardrooms are battlefields, mergers are puzzles, and corporate jargon is his second language. Whether it’s navigating the maze of company law, tackling securities regulations, or guiding businesses through the stormy seas of bankruptcy and insolvency, Siddhant has done it all.
From crafting complex legal opinions on mergers to waving goodbye at company closures, Siddhant’s experience spans the corporate spectrum. When he’s not solving legal riddles, he’s busy sharing his insights through newsletters and publications, because why should only his clients benefit from all that knowledge?
If you’re looking for someone who can help you untangle the knots of business law (and maybe crack a joke while doing it), Siddhant’s your guy!
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