FTC Denies Application for New Verifiable Parental Consent Mechanism Under COPPA Rule Without Prejudice

The Federal Trade Commission (FTC) recently denied an application to add a new verifiable parental consent mechanism under the Children's Online Privacy Protection Act (COPPA) rule. The decision was made without prejudice, signaling that the FTC may reconsider the application in the future.

Background

COPPA regulates the online collection of personal information from children under the age of 13. The law requires operators of websites and online services to obtain verifiable parental consent before collecting personal information from children. The FTC enforces COPPA and has established a rule that outlines acceptable methods for obtaining parental consent.

Under the COPPA rule, verifiable parental consent can be obtained through various methods, such as requiring a parent to use a credit card in a transaction, providing a toll-free number or email address for parents to contact the operator, or using a government-issued identification. However, the law also allows for the addition of new verifiable parental consent mechanisms through a formal application process.

The Application

In this case, the FTC denied an application for a new verifiable parental consent mechanism submitted by an unidentified entity. The application presumably sought approval for a new method of obtaining parental consent that was not currently outlined in the COPPA rule.

The FTC's decision to deny the application without prejudice indicates that the agency did not find the application to be approvable at this time, but it does not preclude the applicant from submitting a revised application in the future. This approach allows the applicant to make necessary changes and resubmit the application for consideration.

FTC Evaluation of Parental Consent Mechanisms

When evaluating new verifiable parental consent mechanisms, the FTC considers several factors to ensure that the proposed method is effective in verifying parental consent while also being easy for parents to use. The agency looks at the overall effectiveness of the proposed mechanism, its ease of use for parents, and whether it provides a reasonable level of assurance that the person providing consent is actually the child's parent.

The FTC also considers the potential for abuse or fraud, as well as the scalability of the proposed mechanism. Additionally, the agency evaluates whether the proposed mechanism strikes a balance between protecting children's privacy and allowing operators to engage in the necessary online activities.

Importance of Verifiable Parental Consent

Verifiable parental consent is a critical component of COPPA, as it helps ensure that children's personal information is not collected without parental permission. By requiring operators to obtain verifiable consent before collecting personal information from children, COPPA aims to protect the privacy and safety of young internet users.

The FTC's rigorous evaluation of new verifiable parental consent mechanisms reflects the agency's commitment to upholding the principles of COPPA and safeguarding children's privacy online.

Impact on Industry

The denial of the application without prejudice may have implications for the broader industry, particularly for companies that are seeking to implement new methods of obtaining parental consent for their online services. While the specific details of the denied application are not publicly disclosed, the decision underscores the challenges and complexities involved in introducing new parental consent mechanisms under COPPA.

Companies that are considering developing and implementing alternative methods for obtaining verifiable parental consent should carefully consider the FTC's evaluation criteria and ensure that their proposed mechanisms meet the agency's standards.

Future Considerations

The denial of the application without prejudice leaves the door open for the applicant to refine the proposed verifiable parental consent mechanism and submit a revised application in the future. This approach acknowledges the possibility that advancements in technology and online practices may warrant the addition of new parental consent methods under COPPA.

In the meantime, the FTC's decision serves as a reminder to industry stakeholders of the importance of complying with COPPA's requirements and the need to prioritize children's privacy in the online environment.

Conclusion

The FTC's recent denial of an application for a new verifiable parental consent mechanism under the COPPA rule without prejudice reflects the agency's dedication to upholding the principles of children's online privacy protection. The decision signals the importance of carefully evaluating proposed parental consent methods to ensure their effectiveness, ease of use for parents, and alignment with COPPA's objectives.

As the online landscape continues to evolve, the FTC's assessment of new verifiable parental consent mechanisms will remain a crucial aspect of ensuring compliance with COPPA and safeguarding children's privacy online. Companies and stakeholders in the industry should take note of the FTC's evaluation criteria and consider these factors when developing and implementing parental consent mechanisms for their online services.