Background
The Federal Trade Commission (FTC) has the authority to issue regulations and enforce COPPA. Also under the terms of COPPA, the FTC designated "safe harbor" provision is designed to encourage increased industry self-regulation. Under this provision, industry groups and others may request Commission approval of self-regulatory guidelines to govern participants' compliance, such that website operators in Commission-approved programs would first be subject to the disciplinary procedures of the safe harbor program in lieu of FTC enforcement. To date, the FTC has granted safe harbor to four companies: TRUSTe, ESRB, CARU and Privo.
In September 2011, the FTC announced proposed revisions to the COPPA rules, the first significant changes to the Act since its rules were issued in 2000. The proposed rule changes expand the definition of what it means to "collect" data from children. The new rules would also present a data retention and deletion requirement, which would mandate that data that is obtained from children is only kept for the amount of time necessary to achieve the purpose that it was collected for and also add the requirement that operators ensure that any third parties to whom a child's information is disclosed have reasonable procedures in place to protect the information.
The Act applies to websites and online services operated for commercial purposes that are either directed to children under 13 or have actual knowledge that children under 13 are providing information online. Most recognized non-profit organizations are exempt from most of the requirements of COPPA. However, the Supreme Court ruled that non-profits operated for the benefit of their members' commercial activities are subject to FTC regulation and consequently also COPPA. The type of "verifiable parental consent" that is required before collecting and using information provided by children under 13 is based upon a "sliding scale" set forth in a Federal Trade Commission regulation that takes into account the manner in which the information is being collected and the uses to which the information will be put.
Read more about this topic: Children's Online Privacy Protection Act
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