FTC Monetize Kid Data, Privacy Rules

Updated on: Apr 25, 2025

Latest Event


  • Apr. 2025 Fed Reg Final Rule
  • On Apr. 22, 2025, FTC published final rule in federal register, effective Jun. 23, 2025.
  • Except 312.11(d)(1), (d)(4), (g), regulated entities have until Apr. 22, 2026 to comply.

On Dec. 20, FTC proposed use of children's personal data restrictions.

  • FTC proposed to amend Children's online privacy protection (COPPA) (16 CFR 312) rule
  • Placed new restrictions on the use and disclosure of children’s personal information.
  • Limit ability of companies to condition access to services on monetizing children’s data.
  • Aims to shift burden from parents to providers to ensure services are safe for children.
  • Rule Provisions
  • Online service operators must obtain separate verifiable parental consent to disclose information to third parties including third-party advertisers; may not condition access.
  • Prohibited conditioning a child’s participation on collection of personal information.
  • Additionally, proposal put limits on the support for the internal operations exemption.
  • Required operators utilizing this exception to provide an online notice that states the specific internal operations for which the operator has collected a persistent identifier.
  • Also how they ensure that identifier is not used/disclosed to contact specific individual.
  • Prohibited operators from using online contact information and persistent identifiers to send push notifications to children to prompt or encourage use of their service more.
  • Proposed codifying current guidance related to the use of education technology to prohibit commercial use of children’s information and implement additional safeguards.
  • Increased safe harbor program accountability; strengthened data security standards.
  • Personal information may only be retained for as long as necessary to fulfill a purpose.
  • Expanded the definition of personal information to include biometric identifiers.
  • Consultation
  • Comments due within 60 days of publication in federal register., i.e., Feb. 18, 2024.
  • Jan. 11, 2024 FTC Fed Reg Proposal
  • On Jan. 11, 2024, FTC published proposed changes to COPPA rule in federal register.
  • Proposed rule changes due to changes in technology and online practices, to clarify and streamline the rule, and based on review of public comments and enforcement.
  • Comments on proposed rule changes must be submitted no later than Mar. 11, 2024.
  • Jan. 2025 FTC Final Rule
  • On Jan. 16, 2025, FTC finalized changes to the COPPA rule to set new requirements around the collection, use and disclosure of children’s personal information and data.
  • New tools, protections to help parents control what data is provided to third parties.
  • Requires opt-in consent for targeted advertising and other disclosures to third parties.
  • In addition, requires covered operators to only retain personal information for as long as reasonably necessary to fulfill a specific purpose for which it was collected.
  • Approved COPPA Safe Harbor programs, self-regulatory programs that implement the protections, will be required to publicly disclose membership lists, information to FTC.
  • Includes several amended definitions, including expanding the definition of personal information to include biometric identifiers as well as government-issued identifiers.
  • FTC decided against adopting some changes, including requirements that were intended to limit use of push notification directed to children without parental consent.
  • Also, requirements applicable to educational technology companies operating in school.
  • FTC noted that it remains concerned about the use of push notifications and other engagement techniques to keep kids online in ways that could harm mental health.
  • Final rule effective 60 days after publication in federal register, except with respect to 312.11(d)(1), (d)(4), and (g), regulated entities have until 365 days after publication.
  • Apr. 2025 Fed Reg Final Rule
  • On Apr. 22, 2025, FTC published final rule in federal register, effective Jun. 23, 2025.
  • Except 312.11(d)(1), (d)(4), (g), regulated entities have until Apr. 22, 2026 to comply.
Regulators
FTC
Entity Types
Corp
Reference
90 FR 16918, 4/22/2025; PR, RF, 1/16/2025; 89 FR 2034, 1/11/2024; RF RIN 3084-AB20, PR, 12/20/2023;, PR, 12/20/2023; Citation: 16 CFR 312;
Functions
Advertising; Operations; Privacy; Product Administration; Record Retention; Reporting; Technology
Countries
United States of America
Category
State
N/A
Products
Corporate
Rule Type
Final
Regions
Am
Rule Date
Dec 20, 2023
Effective Date
Jun 23, 2025
Rule ID
195742
Linked to
N/A
Reg. Last Update
Apr 22, 2025
Report Section
US Consumer