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The
FTC said in a notice of proposed rule-making that it was
considering changing the Children's Online Privacy Protection
Rule to put more restrictions on when and how companies could
monetize children's data.
It would also limit how companies can use notifications to nudge
children to stay online. The rule affects companies which
collect personal information about users under age 13.
"Kids must be able to play and learn online without being
endlessly tracked by companies looking to hoard and monetize
their personal data," said FTC Chair Lina Khan in a statement.
"The proposed changes to COPPA are much-needed, especially in an
era where online tools are essential for navigating daily life."
Since many platforms and websites on the internet are free,
companies rely on advertising to pay bills. They try to tailor
that advertising by using information about users which indicate
what they might be interested in.
Critics have accused the platforms of failing to address mental
health harms done by algorithms used by the platforms to keep
young people engaged.
Under the proposed changes, companies would have to get
"separate verifiable parental consent" to share most information
about children with advertisers and other third parties.
The proposed changes would reinforce that companies cannot ban
children from an activity if they decline to allow collection of
personal data and would allow school districts to bar companies
that provide educational technology for using any information it
collects for a commercial purpose.
The FTC said that it would accept comments on the rule for 60
days.
Neither Alphabet nor Meta immediately responded to a request for
comment.
(Reporting by Diane Bartz; Editing by Aurora Ellis)
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