FTC Warns Gator Group, Tinitell that Online Services Might Violate COPPA

Press Release "The staff of the Federal Trade Commission sent letters to two foreign companies that market electronic devices and apps that appear to collect geolocation data from children, warning that the companies may be in violation of the Children’s Online Privacy Protection Act (COPPA) Rule.
The letters were sent to China-based Gator Group Co., Ltd., and Sweden-based Tinitell, Inc., which both provide online services. Gator Group advertises an app and a device called the Kids GPS Gator Watch, which it markets as a “child’s first cell phone.” Tinitell has also marketed an app that works with a mobile phone worn like a watch, which is also designed for children. Although Tinitell has stopped selling the devices, they will continue to operate through September 2018. Copies of the letters were also sent to the Apple App Store and the Google Play Store, which make the apps available to consumers in their stores.
The FTC’s COPPA Rule requires companies collecting personal information from children under the age of 13 to post clear privacy policies and to notify parents and get their consent before collecting, using or sharing personal information from a child.
In its letters to the two companies, the FTC noted that even though they are based outside the United States, foreign companies are required to comply with COPPA when their services are directed to children in the United States or they knowingly collect information from U.S.-based children.

The online services offered by both companies appear to be directed to children and to collect precise geolocation information from children. The letters note that a review of both companies’ services reveal that they do not appear to provide direct notice of their collection practices and do not seek verifiable parental consent before collecting, using or disclosing personal information as required by COPPA.

The letters encourage the companies to review their online services, policies and procedures to ensure they are in compliance with COPPA."

[EVENT] FTC to Host Public Roundtable to Review Whether Technology Changes Warrant Changes to the Children's Online Privacy Protection Rule

Press Release: "In light of rapidly changing technology such as the increased use of smartphones and other devices to access the Internet, the Federal Trade Commission will host a public roundtable, “Protecting Kids' Privacy Online: Reviewing the COPPA Rule,” on June 2, 2010 to explore whether to update the Children's Online Privacy Protection Rule. The Rule was enacted in 2000 and requires Web site operators to obtain parental consent before collecting, using, or disclosing personal information from children under 13. Roundtable topics will include:

• Whether the Rule should be applied to emerging media such as mobile devices, interactive television, and interactive gaming;
• Potential expansion of the Rule to cover more items of information that might be collected from children; and,
• A review of the parental verification methods used by Web site operators.

"For a more detailed list of topics, see the Commission's March 24, 2010 request for public comment on the COPPA Rule, at http://www.ftc.gov/opa/2010/03/coppa.shtm .

"The roundtable will be held at the FTC Conference Center at 601 New Jersey Avenue N.W. in Washington, DC. It is free and open to the public. Pre-registration is not required. Members of the public and press who wish to participate but who cannot attend can view a live webcast at ftc.gov.

"Individuals and organizations may submit requests to participate as panelists and may recommend topics for inclusion in the agenda. The requests and recommendations should be submitted electronically to childrensprivacyroundtable@ftc.gov . Prospective panelists should submit a statement detailing their expertise on the issues to be addressed and contact information no later than May 5, 2010. Panelists will be selected based on expertise and the need to include a broad range of views.

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MEDIA CONTACT: Office of Public Affairs
202-326-2180

STAFF CONTACT:
Phyllis Marcus or Mamie Kresses
Bureau of Consumer Protection
202-326-2854 or 202-326-2070

[RFC] FTC Seeks Comment on Children's Online Privacy Protections; Questions Whether Changes to Technology Warrant Changes to Agency Rule

Press Release March 24: "In light of rapidly evolving technology and changes in the way children use and access the Internet, the Federal Trade Commission is seeking public comment on the costs and benefits of an FTC rule designed to protect children online.

"The FTC’s Children’s Online Privacy Protection Act (COPPA) Rule became effective on April 21, 2000. COPPA imposes requirements on operators of Web sites or online services that are aimed at children under 13 years of age, or that knowingly collect personal information from children under 13. Among other things, the Rule requires that online operators notify parents and get their permission before collecting, using, or disclosing personal information from children. It also requires that the operators keep the information they collect from children secure, and prohibits them from requiring children to turn over any more personal information than is reasonably necessary to participate in activities on their Web sites.

"In 2005, the FTC initiated a congressionally required review of the Rule, and after considering extensive public comment decided to retain it without change. However, the Commission believes that changes to the online environment over the past five years, including children’s increasing use of mobile technology to access the Internet, warrant reexamining the Rule.

"In a Federal Register notice to be published shortly, the FTC poses its standard regulatory review questions and identifies several areas where public comment would be especially useful. Among other things, the FTC asks:

• What implications for COPPA enforcement are raised by mobile communications, interactive television, interactive gaming, or other similar interactive media.
• For input on the use of automated systems – those that filter out any personally identifiable information prior to posting – to review children’s Web submissions.
• Whether operators have the ability to contact specific individuals using information collected from children online, such as persistent IP addresses, mobile geolocation data, or information collected in connection with behavioral advertising, and whether the Rule’s definition of “personal information” should be expanded accordingly.
• Whether there are additional technological methods to obtain verifiable parental consent that should be added to the COPPA Rule, and whether any of the methods currently included should be removed.
• Whether parents are exercising their right under the Rule to review or delete personal information collected from their children, and what challenges operators face in authenticating parents.
• Whether the Rule’s process for FTC approval of self-regulatory guidelines – known as safe harbor programs – has enhanced compliance, and whether the criteria for FTC approval and oversight of the guidelines should be modified in any way.

"Copies of the Federal Register Notice and the public comments received will be posted on the FTC’s Web site at: http://www.ftc.gov/privacy/privacyinitiatives/childrens.html.

"The 90-day comment period will end on June 30, 2010. The Commission also will hold a public roundtable on the COPPA Rule review on Wednesday, June 2, 2010, at the FTC Conference Center, 601 New Jersey Avenue, N.W., Washington, DC.

"Interested parties can submit written comments electronically or in paper form, by following the instructions in the Invitation To Comment part of the “Supplementary Information” section. Comments in electronic form should be submitted using the following Web link: https://public.commentworks.com/ftc/2010copparulereview (and following the instructions on the web-based form). Comments in paper form should be mailed or delivered to: Federal Trade Commission, Office of the Secretary, Room H-135 (Annex E), 600 Pennsylvania Avenue, N.W., Washington, DC 20580.

[RFC] FTC Seeks Public Comment on Program to Keep Web Site Operators in Compliance With the Children's Online Privacy Protection Rule

The Federal Trade Commission is seeking public comment on proposed guidelines that are designed to help Web site operators comply with the FTC's Children's Online Privacy Protection Rule.

The proposed guidelines were submitted to the FTC by a non-profit organization known as iSAFE, Inc. under a provision aimed at industry self-regulation. This provision allows non-profit groups and companies to request FTC approval of proposed guidelines – known as safe harbor programs – that govern compliance with the Rule.

Web site operators participating in FTC-approved safe harbor programs are subject to the programs' disciplinary procedures. In cases where the FTC is considering legal action against a Web site operator, the agency takes into account the operator's response to safe harbor disciplinary procedures.

The Rule requires operators of Web sites that are directed at children under 13 years old and that collect personal information from them – as well as operators of general-audience Web sites that knowingly collect personal information from children under 13 – to notify parents and obtain their consent before collecting, using, or disclosing any such information. Since the Rule took effect on April 21, 2000, four groups – the Children's Advertising Review Unit of the Council of Better Business Bureaus, the Entertainment Software Rating Board, TrustE and Privo, Inc. – have received Commission approval for their safe harbor programs. In a Federal Register notice to be published shortly, the FTC seeks public comment about the proposed iSAFE guidelines; whether the guidelines provide “the same or greater protections for children” as those contained in the Children's Online Privacy Protection Rule; whether the mechanisms used to assess operators' compliance are effective; whether incentives for operators' compliance with the guidelines are effective; and whether the guidelines provide adequate means for resolving consumer complaints. The comment period will last for 45 days [after fed reg publication] . iSAFE's safe harbor application and the public comments received will be posted on the FTC's Web site at: http://www.ftc.gov/privacy/privacyinitiatives/childrens_shp.html .

NOTE: Publication of this Federal Register notice does not indicate Commission approval of the safe harbor application. The Commission has 180 days to review proposed self-regulatory guidelines and must set forth its conclusions in writing.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC's Web site provides free information on a variety of consumer topics .

For Your Information: 1/6/2010

MEDIA CONTACT: Betsy Lordan
Office of Public Affairs
202-326-3707

STAFF CONTACT: Mamie Kresses or Phyllis Marcus
Bureau of Consumer Protection
202-326-2070 or 202-326-2854