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Wednesday, May 15, 2013

New Rules on Kids and Apps

Good News for Parents
Do you have a child that uses the Internet or plays with an app on your phone or tablet? Unless you live in Mad Men times, you've probably answered "yes" to these questions. Then, you should have heard about COPPA, right?

I didn't until recently. I assumed it was the Barry Manilow song. However, COPPA is the Children's Online Privacy Protection Act, a U.S. federal law enforced by the Federal Trade Commission (FTC) to protect the privacy of children when they go online.
 
It requires parental consent from websites and apps looking to collect personal information from users under 13-years-old. It's the most significant overhaul of the nation's laws to protect children's online privacy. In short, COPPA is good news.
 
The updated federal children's online privacy rules go into effect in July. Developers of games and other mobile software are still figuring out how to comply: They must balance their desire to tap the lucrative kids' market and the increased regulatory headache of targeting children.
 
The biggest problem: data-collection practices that have become routine in the app industry could run afoul of the new rules when used in kids' apps.
 
Regulators spent much of the last two years soliciting comments from entertainment companies, app developers, consumer groups and others about how to best update the way the government enforces COPPA.
 
The FTC can seek civil penalties against Coppa violators, and in the past has won settlement payments as high as $3 million.
 
In the law's early years, COPPA was relatively simple to enforce: Regulators cracked down on websites that asked kids for emails, home addresses and phone numbers without first checking with their parents.
 
But the explosion of smartphone and tablet games complicated the picture. Children are big users of those devices and are picking them up at very young ages. The devices have expanded the range of information that can be harvested, from device usage patterns to location data to photos and videos.

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