Children's Online Privacy Protection Act (COPPA)

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 by regulating how websites and online services collect, use, and disclose personal information from children. This law emphasizes the importance of transparency and disclosure in advertising directed at children, requiring that companies obtain verifiable parental consent before collecting any personal information from minors. By establishing these guidelines, COPPA seeks to create a safer online environment for young users and ensure that parents are informed about their children's online activities.

5 Must Know Facts For Your Next Test

1. COPPA applies to operators of websites or online services that are directed to children under 13 or have actual knowledge that they are collecting information from children.
2. Under COPPA, websites must provide clear and comprehensive privacy policies that detail their information collection practices targeted at children.
3. The act requires that any data collected from children must be securely maintained and used only for the purposes disclosed at the time of collection.
4. Violations of COPPA can result in hefty fines imposed by the FTC, with penalties up to $43,280 per violation.
5. COPPA has influenced many online companies to adopt stricter data protection measures and improve transparency in their advertising strategies aimed at young audiences.

Review Questions

• How does COPPA ensure transparency and disclosure for advertising directed at children?
  • COPPA ensures transparency and disclosure in advertising directed at children by requiring operators of websites and online services to clearly outline their data collection practices in their privacy policies. Additionally, companies must obtain verifiable parental consent before collecting any personal information from children. This means that parents are informed about what data is being collected and how it will be used, promoting a safer online experience for young users.
• What are the consequences for companies that violate COPPA regulations?
  • Companies that violate COPPA regulations face significant consequences, including enforcement actions by the Federal Trade Commission (FTC). Penalties can amount to fines of up to $43,280 per violation. This financial burden encourages companies to adhere to the law's requirements, ensuring they maintain proper safeguards around children's personal information and fostering compliance within the digital landscape.
• Evaluate the impact of COPPA on the advertising strategies employed by online platforms targeting children.
  • COPPA has significantly impacted advertising strategies employed by online platforms targeting children by necessitating greater transparency and data protection measures. As companies strive to comply with the law, they often reevaluate their marketing approaches, focusing on responsible content creation and engaging parents in their children's digital experiences. This shift not only promotes ethical advertising practices but also builds trust with consumers by prioritizing the safety and privacy of young users in an increasingly digital world.

Related terms

Verifiable Parental Consent: A requirement under COPPA that mandates websites and online services obtain explicit permission from a child's parent or guardian before collecting personal data.

Personal Information: Data that can be used to identify an individual, such as name, address, email, and any other information related to a child’s identity, as defined by COPPA.

FTC (Federal Trade Commission): The U.S. government agency responsible for enforcing COPPA and protecting consumers' rights, including the privacy of children online.