US Regulators Propose New Online Privacy Safeguards For Children

An anonymous reader quotes a report from the New York Times: The Federal Trade Commission on Wednesday proposed sweeping changes to bolster the key federal rule that has protected children's privacy online, in one of the most significant attempts by the U.S. government to strengthen consumer privacy in more than a decade. The changes are intended to fortify the rules underlying the Children's Online Privacy Protection Act of 1998, a law that restricts the online tracking of youngsters by services like social media apps, video game platforms, toy retailers and digital advertising networks. Regulators said the moves would 'shift the burden' of online safety from parents to apps and other digital services while curbing how platforms may use and monetize children's data.

The proposed changes would require certain online services to turn off targeted advertising by default for children under 13. They would prohibit the online services from using personal details like a child's cellphone number to induce youngsters to stay on their platforms longer. That means online services would no longer be able to use personal data to bombard young children with push notifications. The proposed updates would also strengthen security requirements for online services that collect children's data as well as limit the length of time online services could keep that information. And they would limit the collection of student data by learning apps and other educational-tech providers, by allowing schools to consent to the collection of children's personal details only for educational purposes, not commercial purposes.

The F.T.C. began reviewing the children's privacy rule in 2019, receiving more than 175,000 comments from tech and advertising industry trade groups, video content developers, consumer advocacy groups and members of Congress. The resulting proposal (PDF) runs more than 150 pages. Proposed changes include narrowing an exception that allows online services to collect persistent identification codes for children for certain internal operations, like product improvement, consumer personalization or fraud prevention, without parental consent. The proposed changes would prohibit online operators from employing such user-tracking codes to maximize the amount of time children spend on their platforms. That means online services would not be able to use techniques like sending mobile phone notifications 'to prompt the child to engage with the site or service, without verifiable parental consent,' according to the proposal. How online services would comply with the changes is not yet known. Members of the public have 60 days to comment on the proposals, after which the commission will vote.

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