FTC finalizes COPPA rule amendments 

Published on January 26th, 2025

Introduction

The Federal Trade Commission (FTC) has finalized important changes to the Children’s Online Privacy Protection Act (COPPA) Rule. These updates aim to strengthen online privacy for children in today’s digital world, where apps and websites are a big part of daily life. As children spend more time online, these changes are both timely and essential. This article explores the key updates, what they mean for businesses, and how they benefit parents and families.

Strengthened Definitions and Compliance Measures

One of the most important updates to the COPPA rule is the expanded definition of “personal information.” The new rule now includes modern types of data such as geolocation information, biometric data, and persistent identifiers, which are often used for online tracking and targeted ads. This broader definition makes it harder for companies to misuse children’s data.

The revised rule also requires businesses to get “verifiable parental consent” before collecting, using, or sharing data from children. This means companies must use clear and simple methods to make sure parents understand what will happen with their child’s information. These updates close old loopholes that allowed some platforms to avoid regulation.

Expanded Coverage for Third Parties

The changes also focus on third-party companies, like advertising networks and analytics providers. These companies must now follow COPPA rules if they work with websites or apps designed for children.

For example, if an advertising network places targeted ads on a child-focused website, it must follow the same rules as the website owner. This update ensures that all parties involved in collecting data from children are held accountable, making it harder for companies to avoid responsibility by relying on third-party services.

Implications for Businesses

Businesses need to adjust their practices to comply with the new rules. Companies that cater to children must redesign their websites and apps to prioritize privacy. This includes creating tools to check a user’s age, providing simple privacy notices, and improving data protection systems to secure sensitive information.

Non-compliance can lead to serious consequences, including fines and a loss of trust from customers. Companies must also educate their employees about these changes to ensure everyone understands and follows the rules. By doing so, businesses can avoid penalties and build a positive reputation as privacy-conscious organizations.

Empowering Parents and Guardians

The updated COPPA rule gives parents more control over their children’s online information. Parents can now see what data companies have collected about their child and decide if they want it deleted or kept.

This increased transparency helps parents feel more confident about their children’s online activities. It also encourages open communication between families and companies, making the internet a safer place for kids. By giving parents this power, the rule ensures that children’s privacy is protected at all times.

Conclusion

The FTC’s updated COPPA rule shows its commitment to keeping up with technological advancements and protecting children’s privacy. These changes benefit children, parents, and advocates for online safety while pushing businesses to act responsibly. By complying with these updates, companies can create a trustworthy and ethical online environment for younger users.