FTC: Parental Permission for Child-Data Gathering Now Required
As of April 21 the operators of commercial sites on the Internet for children will have to get verifiable parental permission before collecting, using, or disseminating personal data about children under the age of 13, the Federal Trade Commission said Wednesday.
In adopting tough new rules implementing the 1998 Children’s Online Privacy Protection Act, the FTC said that permission–from parents or schools acting as their intermediaries–could be in the form of a fax, telephone call, mailed response or an e-mail accompanied by a password or personal information number.
According to FTC Chairman Robert Pitofsky, the requirement “puts parents in control over the information collected from their children” without unduly burdening Internet businesses. The rules, he said, are “flexible enough to accommodate the many business practices and technological changes occurring on the Internet” as they include a “safe harbor” provision allowing for the creation of industry self-regulation programs.
The FTC will monitor Web site operator compliance through a new Internet Lab, which it launched last month. The agency will also investigate complaints and reports received from parents, legal guardians and school officials acting as their intermediaries over a toll-free number, 1-877-FTC-HELP. Violators face civil penalties, including fines of up to $11,000 per violation.
Calling the new rules “balanced and effective,” Jerry Cerasale, the Direct Marketing Association’s senior vice president of government affairs, said in a statement that they “establish a significant, but attainable benchmark that marketers will need to meet to address legitimate privacy concerns [which] in turn will help parental trust in using the Internet for educational and shopping activities.”
Patricia Faley, DMA vice president of consumer affairs, added that they “satisfactorily address the industry’s concerns about implementation flexibility and cost,” helping to keep the use of the Internet by children enjoyable, accessible and educational.”
The Online Privacy Alliance, a coalition of major companies active on the Internet, said through an advisor, Christine Varney, that the FTC was to be commended for “striking a balance between the obvious need to protect children online and the need to maintain the interactivity that kids enjoy so much.”
Meantime, Rep. Edward J. Markey, (D-MA), who is working to implement greater privacy protections in the financial services modernization bill before Congress, observed that under the new rule “a child’s allowance has greater privacy protection than their parents’ financial records.” Hew called that “absurd.”
Sen. Conrad Burns (R-MT), said increased privacy protections shouldn’t “stop with children.” He’s pressing for passage of a stronger Internet privacy protection law.
