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FTC Proposes Changes to Strengthen COPPA Rule

03 Jan

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Update Applicable to:Effective date
  All businesses that are covered under the Children’s Online Privacy Protection Act (COPPA)  See details

What happened?

On December 20, 2023, The Federal Trade Commission (FTC) proposed changes to the COPPA Rule that would place new restrictions on the use and disclosure of children’s personal information and further limit the ability of companies to condition access to services on monetizing children’s data, aiming to shift the burden from parents to providers.

What are the details?

The FTC is a federal agency that enforces federal consumer protection laws that prevent fraud, deception, and unfair business practices.

The FTC is seeking comments on a revised proposal to the COPPA Rule aimed at addressing the evolving ways personal information is being collected, used, and disclosed, including monetization of children’s data, and clarifying and streamlining the rule. 

Some key changes proposed are:

  1. Expanded definition of personal information
  2. Limits on data retention
  3. New factors added to “directed to children” test
  4. Updated notice, consent requirements, and exceptions
  5. Increasing accountability for Safe Harbor programs
  6. New data security requirements

The Proposed Rule is expected to be published soon, and interested parties have 60 days to submit their comments after publication.

Business Considerations

  • Plan to update your policies, practices, and procedures according to the revised proposed rules.

During a comment period, your business has the opportunity to influence amendments to the proposed rule that may benefit your organization. Review the rule and if interested, share your feedback during the comment period.

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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