Children's Online Privacy Protection Act

Definition

The Children's Online Privacy Protection Act (COPPA) is a U.S. federal law enacted in 1998 aimed at protecting the privacy of children under the age of 13 when they are online. This law requires websites and online services directed toward children to obtain verifiable parental consent before collecting personal information from them. COPPA plays a critical role in e-commerce by setting standards for how businesses must handle children's data.

5 Must Know Facts For Your Next Test

1. COPPA applies to operators of commercial websites and online services that are directed at children under 13 years old or have actual knowledge that they are collecting information from children.
2. To comply with COPPA, websites must provide a clear privacy policy detailing what information is collected, how it is used, and how parents can review their child's information.
3. The law gives parents the right to review personal information collected from their children and to request deletion of that information.
4. Violations of COPPA can result in hefty fines imposed by the FTC, with penalties up to $43,280 per violation.
5. The act has prompted many companies to design their online environments in ways that minimize data collection from children or restrict access entirely.

Review Questions

• How does COPPA ensure the protection of children's privacy online?
  • COPPA ensures the protection of children's privacy by requiring websites and online services to obtain verifiable parental consent before collecting personal information from children under 13. This means that companies must implement mechanisms to confirm that parents are aware of and agree to the collection of their child's data. Additionally, COPPA mandates that these services clearly outline their privacy practices, allowing parents to understand how their child's information will be used.
• Discuss the implications of COPPA for e-commerce businesses targeting children.
  • COPPA imposes significant implications for e-commerce businesses targeting children as they must navigate strict compliance requirements regarding data collection and parental consent. Businesses need to create clear privacy policies and implement systems for obtaining verifiable consent from parents. This can increase operational costs and complexity, but it also fosters trust with consumers by prioritizing children's privacy. Failure to comply can result in severe financial penalties and damage to brand reputation.
• Evaluate the effectiveness of COPPA in adapting to the evolving landscape of digital marketing aimed at children.
  • The effectiveness of COPPA in adapting to the evolving landscape of digital marketing aimed at children can be evaluated through its ability to keep pace with technological advancements. While COPPA provides essential protections, challenges arise with new forms of data collection and marketing strategies that may exploit loopholes or target young audiences indirectly. As technology continues to evolve, there is an ongoing need for updates and adaptations in legislation to address emerging threats to children's privacy, making it crucial for lawmakers to monitor these changes closely and enforce compliance among digital platforms.

Related terms

Verifiable Parental Consent: A requirement under COPPA that ensures parents provide explicit permission before their child's personal information can be collected by online services.

Personal Information: Any information that can identify an individual, such as name, address, email, and other identifiers, which is particularly sensitive when it involves children.

FTC: The Federal Trade Commission, which enforces COPPA and has the authority to impose penalties on businesses that violate children's privacy protections.