US internet rules will restrict data collection on young users
New regulations restrict information apps can collect from children, but critics say they will stifle innovation and increase costs for consumers
Unbeknown to the lucky children who unwrapped tablets or smartphones this holiday season, new rules issued by Washington to protect their privacy on those devices could have profound implications for the future of the internet and mobile apps.
The Federal Trade Commission recently updated the 14-year-old Children's Online Privacy Protection Act rule, or COPPA, to cover smartphones and social media. The revised rule expands the list of "personal information" that cannot be collected from children under 13 without parental consent to include location, photographs and videos.
It forbids child-directed apps and websites to track children's activities on the internet or to pass their data on to other companies without their parents' knowledge. Third-party operators will also be liable for information gathered from child-oriented sites.
Privacy advocates say the changes set the stage for adult consumers to demand the same kind of privacy protection.
The technology industry, which lobbied against the changes, warns over-regulation of data collection will stifle innovation, increase costs for consumers, and put app developers and websites out of business.
"We suspect this will dramatically diminish the number and kind of new education tools which are built for kids," said Tim Sparapani, vice-president for law policy and government relations with Application Developers Alliance, an industry association. "We were in the midst of an incredible innovative cycle which had great potential for advancing educational apps for free or nearly free. ... The FTC's actions threaten to grind that to a halt."
Companies would have to hire lawyers and designers and build special servers to comply with the new regulations, he said.