Oath, Verizon Subsidiary to Pay Largest-Ever COPPA Enforcement Fine in the US for Targeting Ads to Children

Oath, a Verizon subsidiary that is an ad tech division created from the merging of AOL and Yahoo, just agreed to pay nearly $5 million to settle charges with the New York Attorney General's office. The company's advertising practices online were said to have violated the Children's Online Privacy Protection Act (COPPA). This is the largest penalty a company has agreed to pay since COPPA was enacted in 1998.

COPPA requires companies to obtain verifiable parental consent before collecting children's personal information. According to Barbara D. Underwood, New York's attorney general, "AOL flagrantly violated the law--and children's privacy..."

The New York Times reported that AOL, through its ad exchange was placing targeted ads on hundreds of websites that it knew were directed to children under 13. The ads were chosen by utilizing personally identifiable information of children, in violation of COPPA.

Visit the New York Times online for further information about the New York attorney general action against Oath.

20 Years Young: The History and Maturing of COPPA in a Privacy-Conscious Age

1998: A Concern for Children’s Privacy Was Born From the moment home computers had the capacity to connect to the Internet, children had the ability to use these technologies to access online websites and services. In the 1990s, concerns about children’s privacy and safety online arose amid fears of marketing practices around selling children’s personal information and exposing children’s information to predators. The Children’s Advertising Review Unit (CARU), founded in 1974, has always been on the forefront of safeguarding children’s privacy. CARU is the self-regulatory arm of the children’s advertising industry, tasked with promoting truth in children’s advertising by reviewing and evaluating child-directed ads in all media to ensure they are truthful, accurate and appropriate. CARU also monitors online privacy practices as they affect children. Before there was any legislation on the matter, CARU monitored a burgeoning Internet and observed how children’s privacy and sa...

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-...

i-Dressup Shuts Down in Wake of Privacy Breach and COPPA Violation

I-Dressup, a fashion-themed social website for teens, has completely shut down as part of a settlement with the New Jersey Department of Consumer Affairs, following a massive privacy breach and violations of the federal Children's Online Privacy Protection Act (COPPA) and New Jersey state law. In September 2016, a hacker sent 2.2 million i-Dressup account credentials to technology blog Arstechnica as well as to haveibeenpwned.com, a searchable online database of data breaches. Responding to the news, New Jersey investigators discovered that 2,519 of the compromised accounts belonged to New Jersey children below age 13. I-Dressup, allegedly aware that it had child users, had violated COPPA by failing to obtain verifiable parental consent prior to collecting and processing personal information from the children, including first and last names and email addresses. In a consent decree with the New Jersey Attorney General Gurbir Gerwal, parent company...

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