Children’s Online Privacy Protection Act (COPPA) Updates

Economic Questions:

  • How effective has COPPA been to date? Are there economic studies that measure the impact of the legislation?

  • Who will determine the “robust cyber security standards,” and might those serve as a barrier to entry?

  • How do internet companies authenticate whether users are under the age of 13?

Summary: Introduced by Sens. Hawley (R-MO) and Markey (D-MA). Bipartisan legislation outlines sweeping updates to COPPA in the frame of big tech companies. The legislation imposes several limits with the goal of protecting adolescent users: 

  • Prohibits internet companies from collecting personal and location information from anyone under the age of 13 without parental consent, and requires user consent for ages 13 to 15. 

  • Bans targeted advertising directed at children.

  • Limits the collection of personal information for teen users by introducing the Digital Marketing Bill of Rights for Teens.

  • Creates an “Eraser Button,” which allows parents and children to eliminate publicly available personal information when feasible.

  • Establishes a Youth Marketing and Privacy Division at the FTC.

  • Prohibits the sale of internet connected devices to children and minors unless they meet “robust cyber security standards.”

  • Requires manufacturers of devices to display a “privacy dashboard,” which describes how information is collected, transmitted, retained, used, and protected.

Supporters want to bring COPPA into the modern era by protecting kids from extensive data collection. Senator Hawley argued that “Big tech companies know too much about our kids… we know too little about what they are doing with our kids’ personal data.”

Opponents to this bill discuss possible ramifications, including less innovation directed towards children’s devices. Companies may make fewer devices aimed at children, or limit the capabilities of those devices to comply with the risks of violating this update.


References and Further Reading:

Senators Hawley and Markey Introduce Bipartisan Legislation to Stop Internet Companies from Spying on Children

U.S. Senators Josh Hawley (R-Mo.) and Ed Markey (D-Mass.) today introduced legislation aimed at stopping corporate giants, including social media titans, from targeting and tracking kids online. Among its many improvements, the bipartisan bill updates the Children's Online Privacy Protection Act (COPPA) by prohibiting internet companies from collecting personal and location information from anyone under the age of 13 without parental consent and from anyone ages 13 to 15 without the user's consent.

Senate bill proposes stricter privacy controls for children

The bill would also ban the sale of connected toys and other child-oriented devices unless they can meet "robust" security standards, and would require that those devices have a privacy "dashboard" on their packaging that shows how they collect, use and secure data.

Keller and Heckman

Date: Mar 26, 2019 As expected, 2019 is shaping up to be the year for privacy reforms, including possible amendments to the 20-year old Children's Online Privacy Protection Act (COPPA).

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