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FTC Proposes COPPA Amendments to Restrict Children's Data Monetization

Website and Online Service Operators Covered by COPPADecember 20, 2023Federal Trade Commission

Summary

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.

Remedy

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.

Compliance ProgramReporting RequirementsBanCorrective Notice

Contract Impact

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.

Contract Search Terms

verifiable parental consenttargeted advertising consentdata collection conditioning prohibitionpush notification restrictionsdata security standardsdata retention limitseducational technology data restrictionscommercial use limitations

Laws Cited

Children's Online Privacy Protection Act
312.5

Violation Types

Entity Details

Entity

Website and Online Service Operators Covered by COPPA

Also known as: COPPA-Covered Operators

Industry

Technology

Official Sources

Source Evidence

Entity Name
"website and online service operators covered by COPPA"
Laws Cited
"Children’s Online Privacy Protection Act (COPPA)"
Statute Sections
"section 312.5"
Violation Types
"addressing the evolving ways personal information is being collected, used, and disclosed, including to monetize children’s data"

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