The FTC has proposed amendments to the COPPA Rule to enhance children's privacy protections. Key changes include requiring separate parental consent for targeted advertising, prohibiting conditioning access on data collection, limiting push notifications, strengthening data security and retention requirements, and restricting commercial use in educational technology. The proposal shifts responsibility from parents to companies to safeguard children's data.
The proposed rule would mandate written data security and retention programs, require public disclosure of retention policies, ban conditioning access on data collection and push notifications to encourage use, and require separate consent for targeted advertising and disclosures to third parties.
In-house legal teams should review vendor agreements (especially those involving data processing or analytics for children's services), customer-facing terms of service and privacy policies, data processing addendums, and educational technology contracts. Key clauses to examine include: consent mechanisms (ensuring separate, verifiable parental consent for any targeted advertising), data sharing and disclosure provisions (limiting sharing for monetization), data retention and deletion schedules (complying with stricter limits), security requirements (aligning with enhanced standards), push notification and in-app communication terms (requiring parental consent and limiting use), and any clauses that condition access to services on data collection or consent to advertising. Updates may be needed to remove conditioning language, implement granular consent flows for advertising, add explicit restrictions on commercial use in educational contexts, and strengthen data security and retention obligations.
Entity
Website and Online Service Operators Covered by COPPA
Also known as: COPPA-Covered Operators
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/12/ftc-proposes-strengthening-childrens-privacy-rule-further-limit-companies-ability-monetize-childrens
16 cfr part 312 childrens online privacy protection rule npr
https://www.ftc.gov/legal-library/browse/federal-register-notices/16-cfr-part-312-childrens-online-privacy-protection-rule-nprm
Policy Statement of the Federal Trade Commission on Educatio
https://www.ftc.gov/system/files/ftc_gov/pdf/Policy%20Statement%20of%20the%20Federal%20Trade%20Commission%20on%20Education%20Technology.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"website and online service operators covered by COPPA"
"Children’s Online Privacy Protection Act (COPPA)"
"section 312.5"
"addressing the evolving ways personal information is being collected, used, and disclosed, including to monetize children’s data"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.