New FTC Rules for Child Privacy

Aug. 8, 2012 - PRLog -- The FTC is proposing a new set of rules that will effect how social networks and Internet advertisers will interact with children online.  Since the adoption of the Children’s Online Privacy Protection Act (COPPA) in 1998, many companies have found loopholes for gathering information from children without first getting parental permission as required by the law.  The FTC is now proposing new rules that could affect features on popular websites such as Facebook’s “Like” button, as well as social networks for playing games on smart-phones.

Under COPPA, websites aimed at children have to get parental consent before gathering personal information from children under 13 years of age.  However, COPPA hasn’t adapted to new advances in technology.  As a result, many websites are able to circumvent the parental consent step.  For example, iPhone games popular with children are able to collect personal data from other social networks that the kids join without first asking for parental consent.

Under the proposed rules, which could go into effect after a 30-day comment period, advertising networks and websites aimed at children will not be able to attach software to children’s websites that collect personal information without first getting parental consent.  Furthermore, third parties will be held liable for any unlawful data collection.

Many online companies have begun to push back against the rules and have suggested that certain features should be exempt from COPPA.

“It will be interesting to see how the new FTC rules play out,” said Darin Klemchuk, partner at Klemchuk Kubasta, a Dallas-based IP boutique.  “If the new, more stringent, rules go into effect, Facebook and many other companies aimed at children will have to revisit their online privacy policies and rework the way that they request consent from parents.”

Since the adoption of COPPA, the FTC has brought only 19 cases against companies or individuals who were charged with violations of children’s privacy laws. “I believe that with the implementation of the new rules, we are likely to see more lawsuits brought by the FTC against violators of COPPA,” said Klemchuk.


The FTC is expected to announce new rules today, which will be followed by a 30-day comment period.  Technology has been on the fast-track since the adoption of COPPA in 1998 and according to the FTC, new rules are necessary to close the loopholes that online companies and advertisers have been creating to circumvent the parental consent requirement and how they use cookies to collect information from children under 13 years of age.


About Darin Klemchuk:
Darin Klemchuk is co-founder and managing partner of Klemchuk Kubasta LLP, a Dallas-based IP boutique law firm that offers comprehensive intellectual property legal services, including litigation and enforcement of all forms of intellectual property as well as registration and licensing of patents, trademarks, trade dress and copyrights.  For Mr. Klemchuk’s full bio, click here.  To contact Mr. Klemchuk, email him at darin.klemchuk@kk-llp.com

About Klemchuk Kubasta LLP:
Based in Dallas, Texas, Klemchuk Kubasta LLP is an IP boutique law firm that offers comprehensive intellectual property legal services, including litigation and enforcement of all forms of intellectual property as well as registration and licensing of patents, trademarks, trade dress, and copyrights.  The firm also provides legal services relating to domain names, e-commerce, privacy policies, social media, Internet law, commercial and business litigation, technology transactions, and international business & trade.  Additional information about the firm and its attorneys may be found at www.kk-llp.com.