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FTC proposes extensive online privacy safeguards for children

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The Federal Trade Commission has proposed strengthening online privacy protections for children.

The move is part of a significant effort by the US government to enhance consumer privacy

The changes aim to fortify the rules under the Children's Online Privacy Protection Act of 1998 (COPPA).

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It restricts the online tracking of children by various services, including social media apps, video game platforms, toy retailers, and digital advertising networks.

The FTC's proposed changes include mandating certain online services to disable targeted advertising by default for children under 13.

It also prohibits using personal details, such as a child's cellphone number, to extend their platform engagement. 

Additionally, the updates seek to bolster security requirements for services collecting children's data and impose limits on data retention.

It aims to restrict student data collection by learning apps for non-commercial purposes.

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The FTC chair Lina M. Khan said: “Kids must be able to play and learn online without being endlessly tracked by companies looking to hoard and monetize their personal data.”

The agency seeks to shift responsibility from parents to digital services, imposing affirmative obligations on service providers and preventing outsourcing responsibilities to parents.

COPPA, a pivotal federal law safeguarding children online in the US, requires online services targeting children or aware of children on their platforms to obtain parental consent before collecting, using, or sharing personal details from children under 13. 

While popular apps like Instagram and TikTok have incorporated age-gating mechanisms, regulators have filed numerous complaints against major tech companies for alleged violations, resulting in multimillion-dollar fines.

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The proposed children's privacy protections come amid increased concerns over potential risks posed by online services to young people's mental health and physical safety. 

Instances of inappropriate content targeting young audiences and distractions in educational settings have fueled public apprehension. 

More than a dozen states have passed laws restricting minors' access to social media networks or explicit content sites in response to these concerns.

The FTC initiated the review of the children's privacy rule in 2019, receiving extensive feedback from various stakeholders. 

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The proposed changes, exceeding 150 pages, address concerns raised during the review and aim to close loopholes in the existing regulations. 

Industry reactions have been mixed, with some trade groups expressing gratitude for the FTC's consideration of external input.

However, others argue that the proposed changes may override parental preferences and impact essential online services for children. 

The public has 60 days to comment on the proposals before the commission takes further action.

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