FTC calls for changes to kids' online privacy rule

The Children's Online Privacy Protection Act (COPPA) prohibits websites from collecting personal details about children under 13 without a parent's consent, but that law has not been updated since 1998, when Facebook and Twitter did not exist.

The FTC reviewed COPPA back in 2005, but made no updates.

The agency now believes that technology has evolved in such a way that the rule urgently needs to be amended.

FTC proposes to update child privacy rule
Considering the fact that online advertisers are targeting America’s youth, the FTC is proposing changes to the U.S. online privacy rule, with broader definition of 'personal information.'

As per the proposed upgrade, owners of websites, mobile apps and other online services will need parental consent to gather a broader range of information about kids under age 13. This includes information on location.

The agency now believes that technology has evolved in such a way that the rule urgently needs to be amended.

The proposed changes to the decade old children's privacy rules also would forbid a website to use tracking software, known as cookies, to build a profile about a child and use GPS location tracking to monitor kids’ online activities for targeting ads without parental permission.

"In this era of rapid technological change, kids are often tech-savvy but judgment poor. We want to ensure that the COPPA Rule is effective in helping parents protect their children online, without unnecessarily burdening online businesses," FTC Chairman Jon Leibowitz said in a statement.

"We look forward to the continuing thoughtful input from industry, children’s advocates, and other stakeholders as we work to update the Rule," Leibowitz added.

Proposed rules draws mixed reaction
FTC's proposed amendments have been welcomed by several privacy advocates, including Rep. Edward Markey (D., Mass.), who along with Rep. Joe Barton (R., Tex.) introduced their comprehensive children’s online privacy legislation earlier this year.

The children's online privacy bill, entitled 'Do Not Track Kids Act of 2011,' requires updating existing rules and extending privacy safeguards to include teenagers.

"Given the potential for this sensitive data to be misused to endanger a child, the commission's proposal in this area is a much-needed step," Rep. Markey said in a statement. "Strong legal requirements along with vigilant enforcement are needed to protect children from tracking and targeting on the Internet."

However, the proposed FTC changes have drawn criticism from social networks and online advertisers.

"DMA strongly believes that such a definition should include only information that in fact permits the direct communication with a specific, identifiable person — not a device that could be used by multiple people, including children under 13 or adults," the Direct marketing Association said.