COPPA Settles Two Cases with App Companies Hinging on Collection of Persistent Identifiers

In case you missed it with all the hustle and bustle of the holidays, to close out 2015, the Federal Trade Commision (FTC) settled two cases with the operators of two "online services" directed to children. The FTC charged the two app operators with violating the Children's Online Privacy Protection Act (COPPA) by allowing third-party advertising networks to use their apps to collect children's personal information without parental knowledge or consent.

The apps were collecting persistent identifiers, which is data that can be used to recognize a children over time and across different websites. Advertisers then use such identifiers to track online behavior and target ads based on those behaviors. In these cases, the apps were allowing the ad networks to collect the persistent identifiers from children so the children could be served personalized ads. Both cases involved apps that were directed to children. In each case, the only violation was the collection of the persistent identifiers, which is a first.

The settlements involved fines for LAI Systems of $60,000 and Retro Dreamer of $300,000 in civil penalties. The companies will be required to bring their apps into compliance with COPPA, which means obtaining verifiable parental consent before collecting, using or disclosing children's personal information as well as posting a clear privacy policy.

To learn more, visit the FTC's website.

Kids Internet Design and Safety Act Seeks to Protect Children from Harmful Online Content

United States Senators, Mr. Richard Blumenthal from Connecticut and Mr. Edward Markey from Massachusetts, introduced a new bill referred to as the Kids Internet Design and Safety Act (the “KIDS Act”). One of the Senator’s introducing the KIDS Act, Mr. Edward Markey, was the co-author of the Children’s Online Privacy Protection Act (“COPPA”). The KIDS Act seeks to include noteworthy advertising rules and create new protections for children online, specifically for online users under the age of 16. The proposed advertising rules within the KIDS Act are to ban websites from: (1) exposing young online users to advertisements “with embedded interactive elements”; (2) recommending any content involving alcohol, nicotine, or tobacco to young online users; and (3) recommending content that includes influencer marketing, like unboxing videos, or host-selling to young online users. Additionally, the KIDS Act seeks to prohibit certain online features to protect children, like prohibiting...

After Review, CARU Finds Snapchat Compliant with COPPA

In a recent decision, CARU found Snap Inc.’s (Snap) Snapchat app to be compliant with both the CARU Guidelines and the Children's Online Privacy Protection Act (COPPA). “The company goes beyond minimal procedures to prevent under-age use” CARU stated. CARU determined that Snapchat is an app directed to a general audience, not intended for use by children. In reaching this conclusion, CARU considered that Snap’s Terms of Service clearly prohibit users under 13 years of age and makes no effort to market the app to children or provide them with an appealing user experience. With that understanding, Snapchat is permitted under the Guidelines and Children’s Online Privacy Protection Act (“COPPA”) to age-gate and block children under 13 from using its services, which it does. CARU then examined whether Snapchat does so effectively. CARU observed that Snapchat utilizes age-gates and many safeguards to ensure that if children manage to breach the existing age-...

Advocates believe Kid Influencers Deserve Same Protections as Other Child Stars

Although there are child labor laws in California that are designed to protect child stars from exploitation (The Coogan Act), the same protections don't always apply to child YouTube and Instagram stars, or kid influencers. Kid Influencers accounts are usually run by their parents since platforms like YouTube and Instagram have age limits of 13 years old. One consequence of not owning their accounts is that all profits received go directly to the guardians and, unlike traditional child actors in California, these guardians are not required to set aside some of the profits for the children. Advocates like Paul Petersen, believe the legal protections like those in California should apply to children outside of the state. Petersen has said that because YouTube is in San Bruno, California and they are paying to broadcast children, California law must apply to those child stars. Many guardians of kid influencers feel these regulations are unnecessary and that the guardians are doi...

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