As of July 1, 2013, the COPPA parental consent rule is in effect and internet companies aren’t thrilled with the FTC’s definition of “personal information” under the new guidelines.

Tech Community Says COPPA Parental Consent Rule May Thwart Innovation

Some parties fear that smaller operations, like app and plug-in firms, will stop collecting interactive content rather than conform to the complicated parental consent process. Why is this a bad thing? Because begging out could, theoretically, thwart innovation.

FTC’s Stance: We Needed A New COPPA Parental Consent Rule

An FTC spokesperson explained that an increase in deceptive ads aimed at kids necessitated this update. FTC Associate Director Maneesha Mithal claimed that “parents should be in the driver’s seat.”

Tech Industry Weighs In

A non-partisan technology think tank, TechFreedom, hosted a panel discussion on the new COPPA parental consent rule. At the event, its president, Berin Szoka, explained: “The reality is most of the sites and services, like Facebook or Twitter, don’t have an option available for kids.”

Advocates voiced skepticism about the parental consent rule and its effect on advertising and so-called kid-friendly websites. For example, PinewoodDerby.org, a Boy Scouts website, might be affected by the COPPA parental consent rule.

Laws must protect minors, but is the COPPA parental consent rule a recipe for disaster that will create unnecessary innovation boundaries? The debate continues.

Chat With A COPPA Lawyer

Want to make sure you’re COPPA compliant? Contact Kelly Warner Law for an audit. A COPPA violation can cost millions. So, read up on all the COPPA rules to ensure your website, plugin, or app is not lawless!