Children's Online Privacy Protection Act

Definition

The Children's Online Privacy Protection Act (COPPA) is a US federal law that regulates the online collection and use of personal information from children under the age of 13. It aims to provide parents with control over what information is collected from their children online and how it is used.

5 Must Know Facts For Your Next Test

1. COPPA applies to website operators and online service providers that collect personal information from children under 13, including websites, mobile apps, and connected toys.
2. The law requires covered entities to provide notice and obtain verifiable parental consent before collecting, using, or disclosing a child's personal information.
3. COPPA defines personal information as data that can be used to identify or contact a specific individual, such as name, address, phone number, email address, and location.
4. Websites and online services must delete a child's personal information at the request of a parent and provide parents with access to their child's information.
5. Violations of COPPA can result in significant civil penalties, with the FTC able to impose fines of up to $43,792 per violation.

Review Questions

• Explain the key purpose and requirements of the Children's Online Privacy Protection Act (COPPA).
  • The primary purpose of COPPA is to protect the privacy of children under 13 by regulating the collection and use of their personal information online. The law requires website operators and online service providers to obtain verifiable parental consent before collecting, using, or disclosing a child's personal data. Additionally, COPPA mandates that covered entities provide clear and comprehensive privacy policies, allow parents to access and delete their child's information, and delete such data upon parental request. These requirements aim to give parents greater control over their children's online privacy and data practices.
• Describe how the Children's Online Privacy Protection Act (COPPA) relates to the ethical issues in retailing and wholesaling.
  • COPPA is relevant to the ethical issues in retailing and wholesaling because it addresses the collection and use of personal information, which is a key concern in these industries. Retailers and wholesalers often collect and analyze consumer data to inform their marketing strategies and business decisions. However, when children are involved, COPPA imposes additional ethical obligations to protect their privacy and obtain parental consent. Failure to comply with COPPA can lead to significant penalties and reputational damage, making it a crucial consideration for companies engaged in online retail and wholesale activities that may involve the personal information of minors.
• Evaluate the potential impact of the Children's Online Privacy Protection Act (COPPA) on the business practices and ethical considerations of retailers and wholesalers.
  • The Children's Online Privacy Protection Act (COPPA) can have a significant impact on the business practices and ethical considerations of retailers and wholesalers. COPPA requires these entities to obtain verifiable parental consent before collecting and using the personal information of children under 13, which can add complexity and cost to their data collection and marketing efforts. Retailers and wholesalers must also be transparent about their data practices, provide parents with access to their children's information, and delete such data upon request. Failure to comply with COPPA can result in substantial fines and reputational damage, making it a critical ethical consideration for companies in these industries. Retailers and wholesalers must carefully evaluate their data collection and usage practices to ensure they are in line with COPPA's requirements, balancing the need for consumer data with the ethical obligation to protect the privacy of minors. Proactive compliance with COPPA can help these businesses maintain consumer trust and avoid legal and reputational risks.

Related terms

Parental Consent: COPPA requires website operators to obtain verifiable parental consent before collecting, using, or disclosing personal information from children under 13.

Privacy Policy: Websites and online services covered by COPPA must post a clear and comprehensive privacy policy that explains their information collection and use practices.

Federal Trade Commission (FTC): The FTC is the primary enforcement agency for COPPA, responsible for investigating violations and imposing civil penalties on non-compliant companies.