Adults can take many steps to guard against elder fraud, identity theft and other scams. But the challenge can be just as great when the targets are children. In response to this growing threat, the Federal Trade Commission is moving forward with a sweeping plan to protect kids from online scammers and to limit the personal information about children that companies can obtain online. The proposed FTC rule is intended to strengthen the Children’s Online Privacy Protection Act of 1998 (COPPA). The law, enacted when the internet was rapidly expanding as a marketing tool, restricts the ability of companies to track youthful users online. The updated rule seeks to “shift the burden” of protecting kids away from their parents and onto those who would profit from them, according to the FTC. It will apply to many smartphone apps, video games, and other digital services. “Kids must be able to play and learn online without being endlessly tracked by companies looking to hoard and monetize their personal data,” FTC Chair Lina M. Khan said upon releasing the plan in December. “The proposed changes to COPPA are much-needed, especially in an era where online tools are essential for navigating daily life – and where firms are deploying increasingly sophisticated digital tools to surveil children…By requiring firms to better safeguard kids’ data, our proposal places affirmative obligations on service providers and prohibits them from outsourcing their responsibilities to parents.” The impending FTC action comes at a time of rising concern over child safety on the internet. In a heated congressional hearing, Senate members recently grilled an array of high tech magnates over the abundance of obscene material that children can access with ease. That session led to no solutions, however. The FTC plan targets a more narrowly focused problem – business strategies that exploit kids such as by profiting from the data children may give up as a condition of using a service. Among the provisions of the new FTC rule:

• Websites and online services aimed at kids under 13 would no longer be allowed to advertise directly to that age group.
• Digital operators would generally be required to get parental consent before sharing information about their young users with third parties, including advertisers.
• Companies may not require children to provide more information than is needed for them to participate in a game or other activity.
• Vendors would be effectively barred from sending children digital “push notifications” that encourage them to keep using a service.
• Companies may not retain children’s personal data when it is no longer necessary for the purpose it was provided.

The FTC rule is still being finalized, and interested citizens may submit public comments to the agency by March 11. For more information, click here.