Children's Online Privacy Rules Updated for Social and Mobile Era

The policies governing companies' collection and use of children's personal information were refreshed for the social media and mobile technology age this week as the new Children's Online Privacy Protection Act (COPPA) rules went into effect on Monday.

COPPA, overseen by the Federal Trade Commission, first went into effect in 2000 and spells out the language websites must use in privacy policies regarding children under 13 years of age. Most importantly, it requires websites to seek permission from children's parents or guardians before transmitting personal data.

COPPA rules are also the reason that some popular websites, such as Facebook, don't allow kids under 13 to create their own account — in many cases, it's simply easier and cheaper not to deal with COPPA's requirements.

The Internet and the way we use it have of course evolved significantly over the last 13 years: Facebook, Twitter, Tumblr and many other social media platforms were all launched during that period, while mobile usage has grown dramatically. Many modern Internet companies' business models revolve around the collection of personal data, which is then used to display targeted advertising to users. The old COPPA rules didn't consider this development, necessitating an update.

The refreshed COPPA rules reflect the new social and mobile reality: COPPA now requires owners of websites marketed to children under 13 to obtain parental consent before collecting a broadened range of material, including screen names, files with a child's image, geolocation data and IP addresses. Additionally, COPPA now applies to mobile app developers and third-party advertisers who may not deal directly with children.

Changes to COPPA didn't come without controversy. Some advertisers and mobile app developers complained throughout the two-year-long deliberation process that stricter rules could stifle innovation and hurt them economically.

"With the upcoming new rules for the Children's Online Privacy Protection Act (COPPA) on July 1, app developers will need to pay closer attention to their security policies when building apps, how they plan to verify the user’s age and what checks they put into place to ensure children do not have access to these apps," said Grayson Milbourne, security intelligence director at Internet security firm Webroot.

"Additionally, while their app may not break COPPA rules, the use of aggressive ad-engines that request user data might put the app developer at risk," he added.

If you're a parent, how do you monitor what your child shares online? Let us know in the comments.

Image via iStockphoto, morganl