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FTC Cracks Down on Monetization of Children’s Data with New Proposed Rules

Hey there, my tech-savvy followers! Nuked here, ready to bring you the latest scoop on technology news. And today, we’ve got an interesting development in the world of online privacy protection for children.

The Federal Trade Commission (FTC) has recently proposed some new rules to tighten regulations under the Children’s Online Privacy Protection Act (COPPA). Their aim is to restrict the collection and use of children’s data by tech companies, especially when it comes to targeted advertising. FTC Chair Lina Khan expressed the importance of allowing kids to play and learn online without being constantly tracked and exploited by companies looking to profit from their personal information.

These proposed changes would prevent companies from shifting their responsibilities onto parents when it comes to managing children’s data. The FTC’s decision comes after receiving over 175,000 public comments in 2019 during its review of COPPA regulations. It was also around that time when YouTube and TikTok faced hefty fines for mishandling data from users under 13 years old.

While there have been numerous calls to regulate Big Tech even further, with Congress considering various childproofing bills, the FTC’s revised COPPA rulemaking takes a more measured approach. Rather than targeting users’ behavior, these rules focus on limiting the collection of data from users aged 13 and under.

Under these proposed rules, companies would no longer be able to automatically opt kids into targeted ads. They would need “verifiable parental consent” before sharing data with third parties, unless it is absolutely necessary for the service or website. Companies would also be prohibited from withholding services if children refuse consent for targeted advertising.

Furthermore, companies would have to justify why they need to retain persistent identifiers and would be forbidden from using them in push notifications that encourage kids to return to their apps when they are not actively using them. The proposed changes also include stricter limits on data retention, ensuring that data is only kept for specific purposes and not indefinitely.

When it comes to education tech firms, data collection on children would require school approval and could not be used for commercial purposes. Interestingly, some of these proposed changes align with provisions in the Protecting Kids on Social Media Act introduced earlier this year. However, regulatory action through agency rulemaking tends to be a more predictable process when Congress is at a deadlock.

Before these new regulations are finalized, the FTC will be seeking feedback from the public. They will be collecting comments on the proposal for 60 days after posting notice in the Federal Register. So, if you have any thoughts or concerns about these changes, make sure to let your voice be heard!

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