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COPPA compliance guide: Protecting kid’s privacy online

megha
Technical Content Writer at Scrut Automation

Megha Thakkar has been weaving words and wrangling technical jargon since 2018. With a knack for simplifying cybersecurity, compliance, AI management systems, and regulatory frameworks, she makes the complex sound refreshingly clear. When she’s not crafting content, Megha is busy baking, embroidering, reading, or coaxing her plants to stay alive—because, much like her writing, her garden thrives on patience. Family always comes first in her world, keeping her grounded and inspired.

The Children’s Online Privacy Protection Act (COPPA) is a U.S. federal law designed to safeguard the privacy of children under 13 online. It mandates strict requirements for websites, apps, and online services that collect personal information from children, ensuring that parents have control over the data their children share.

For businesses handling children’s data, COPPA compliance is not just a legal obligation but a critical trust-building measure. Adhering to the COPPA guidelines protects businesses from legal repercussions and reputational damage while prioritizing kids’ privacy. Compliance demonstrates a commitment to ethical practices, enhancing credibility in an increasingly privacy-conscious world.

In this article, we will explore what is COPPA compliance, why it matters, and actionable steps you can take to implement it effectively in your business.

COPPA compliance: Key principles CEOs and CISOs must understand

The first question you must ask yourself is, “What is COPPA compliance?” The Children’s Online Privacy Protection Act (COPPA) is a U.S. law enacted in 1998 to protect the privacy and personal information of children under the age of 13. It applies to websites, apps, and online services that collect data from children or knowingly target child audiences. COPPA requires these businesses to obtain verifiable parental consent before collecting, using, or disclosing a child’s personal information.

COPPA compliance is essential for organizations to avoid hefty fines, maintain consumer trust, and ensure adherence to the Children’s Online Safety and Privacy Act. At its core, COPPA is a safeguard for kids’ privacy in the digital age.

Who is covered under COPPA?

COPPA compliance applies to businesses that operate websites, apps, or platforms targeting children under the age of 13 or that knowingly collect personal information from children in this age group. This includes:

  1. Child-directed websites or online services: Platforms designed explicitly for children or featuring content appealing to children under 13.
  2. General-audience websites or services: If these platforms knowingly collect data from users under 13, they are also subject to COPPA requirements.
  3. Third-party services: Ad networks, plug-ins, or analytics providers that collect data from children via child-focused platforms must comply.

This wide applicability ensures the kids online safety and privacy act effectively protects kids’ privacy across the digital ecosystem. Compliance is not optional—it’s a legal necessity for safeguarding young users’ data.

What is “personal information” under COPPA?

Personal Information under COPPA

Under COPPA compliance, “personal information” includes any data that can identify a child or be used to contact or locate them. Key categories include:

  1. Basic identifiers: Name, address, phone number, email address, and user names if they function as online identifiers.
  2. Photos and videos: Any media files containing a child’s image or voice.
  3. Geolocation information: Precise location data that can pinpoint a child’s whereabouts.
  4. Online identifiers: IP addresses, cookies, and device identifiers used for tracking and profiling.
  5. Behavioral data: Information collected through tracking activities, such as browsing history or app usage patterns.
  6. Other sensitive information: Any combination of data that could indirectly identify a child.

These provisions under the kids online safety and privacy act emphasize protecting kids’ privacy from potential misuse in the digital realm.

Core requirements of COPPA compliance

Four Core Requirements of COPPA Compliance

To ensure COPPA compliance, businesses must adhere to several key requirements designed to protect kids’ privacy and uphold the principles of the kids online safety and privacy act:

  1. Parental consent: Obtain verifiable parental consent before collecting, using, or disclosing personal information from children under 13.
  2. Clear privacy notices: Provide an easy-to-understand and accessible privacy policy detailing what data is collected, how it’s used, and who it’s shared with.
  3. Data security: Implement robust measures to safeguard children’s personal information from unauthorized access or breaches.
  4. Retention limitations: Retain personal data only as long as necessary for its intended purpose and delete it securely afterward.

These requirements not only ensure legal compliance but also reinforce trust with parents and guardians, demonstrating a commitment to protecting young users.

Positive impacts of COPPA compliance

Advantages of COPPA Compliance
  1. Enhanced reputation
    By prioritizing kids’ privacy and adhering to the kids online safety and privacy act, businesses build trust with parents, educators, and regulators. This commitment fosters goodwill and strengthens the brand image.
  2. Market differentiation
    Businesses demonstrating responsible data practices stand out in a competitive market. This attracts privacy-conscious users, especially families, educators, and other child-focused audiences.
  3. Legal and financial safeguards
    Maintaining COPPA compliance helps organizations avoid hefty fines, lawsuits, and other legal repercussions associated with non-compliance.
  4. Foundation for global privacy compliance
    The practices implemented for COPPA often align with broader privacy regulations such as the General Data Protection Regulation (GDPR) and the EU AI Act. This alignment can simplify the process of achieving compliance in other jurisdictions, ensuring readiness for future regulatory requirements.

What are the penalties for non-compliance with COPPA?

Epic Games (December 2022): Epic Games, the creator of Fortnite, agreed to a $275 million penalty to settle FTC allegations of COPPA violations. The company was accused of collecting personal information from children under 13 without parental consent and enabling real-time voice and text chat communications for children and teens by default.

According to the Federal Trade Commission (FTC) guidelines, non-compliance with the COPPA can result in significant civil penalties of up to $51,744 per violation. The amount is determined case by case, based on factors such as:

  • The seriousness and scope of the violation.
  • The degree of harm caused to children and families.
  • The company’s financial condition and ability to pay.

The FTC has imposed fines that have reached up to tens of millions of dollars in recent cases. Additionally, non-compliance can lead to reputational damage, increased regulatory scrutiny, and the risk of lawsuits, all of which underscore the importance of maintaining COPPA compliance to protect kids’ privacy and adhere to the kids online safety and privacy act.

Microsoft (June 2023): FTC required Microsoft to pay a $20 million civil penalty for allegedly collecting personal information from children under 13 without parental consent through its Xbox Live service. The complaint also alleged that Microsoft retained this data longer than permitted under COPPA.

Practical steps to achieve COPPA compliance

By following these steps, businesses can effectively align with COPPA compliance requirements, safeguard kids’ privacy, and reduce risks of regulatory violations.

Step 1: Conduct a data inventory

Begin by mapping all data collection activities within your organization. Identify and flag processes involving children’s personal information to understand where compliance measures are necessary. This foundational step ensures adherence to the kids online safety and privacy act and prioritizes kids’ privacy.

Step 2: Implement age-gating strategies

Develop robust systems to identify users under 13 and segregate their data collection accordingly. Popular approaches include age prompts or AI-driven verification mechanisms to prevent inadvertent non-compliance.

Step 3: Obtain verifiable parental consent

Adopt FTC-approved methods for parental consent, such as:

  • Email-plus: Email verification combined with a secondary action.
  • Credit card verification: Charging a small fee to confirm parental identity.
  • Signed forms: Collecting signed consent forms via email, fax, or mail.

Step 4: Draft transparent privacy policies

Publish a clear, concise privacy policy outlining what data is collected, its purpose, and how it is shared. Highlight parental rights, including the ability to review and delete their child’s information. Following best practices ensures compliance while fostering trust.

Step 5: Establish robust data minimization and deletion practices

Limit data collection to what is absolutely essential for your service. Implement systems to delete personal information promptly when requested by parents or when it is no longer necessary for its original purpose.

Navigating common COPPA compliance challenges

Challenges faced during implementing COPPA Compliance

By proactively addressing the COPPA compliance challenges, organizations can maintain compliance while navigating the complexities of mixed audiences, vendor partnerships, and evolving privacy frameworks.

Mixed-audience platforms

Managing platforms that serve both adults and children poses unique challenges. Businesses must:

  • Segment audiences: Use age-gating mechanisms to distinguish users under 13 from adults.
  • Tailor experiences: Provide COPPA-compliant experiences for children, such as limiting data collection and disabling behavioral advertising.
  • Implement dual privacy policies: Develop separate policies and workflows for child and adult audiences, ensuring clarity and compliance with the kids online safety and privacy act.

Third-party vendor risks

Reliance on third-party vendors, such as ad networks or analytics tools, introduces additional risks. To mitigate these:

  • Vet partners rigorously: Ensure vendors commit to COPPA compliance and do not collect or process children’s data improperly.
  • Establish contracts: Include explicit clauses requiring compliance with COPPA and other relevant privacy laws.
  • Conduct audits: Regularly review third-party practices to confirm adherence to privacy requirements, safeguarding kids’ privacy.

Evolving regulatory expectations

COPPA operates within a dynamic global privacy landscape, requiring businesses to:

  • Harmonize with GDPR and EU AI Act: Leverage COPPA-compliant practices to align with global frameworks, such as GDPR’s parental consent requirements and the EU AI Act’s transparency mandates.
  • Stay updated: Monitor regulatory updates and industry best practices to adapt quickly.
  • Invest in cross-jurisdictional tools: Use privacy management systems capable of meeting diverse compliance needs across multiple regions.

How Scrut can help you simplify COPPA compliance

Now you know what is COPPA compliance. You also know ensuring compliance with the COPPA is essential for businesses handling children’s data. Scrut offers a comprehensive platform to simplify this process through several key features:

1. Centralized compliance management

Scrut’s platform enables real-time mapping and monitoring of all data collection activities, ensuring that any processes involving children’s information are easily identifiable and managed appropriately.

Scrut's Centralized Compliance Management

2. Streamlined vendor management

    Scrut provides tools to assess and monitor third-party services, ensuring that partners such as ad networks and analytics tools comply with COPPA, thereby mitigating associated risks.

    Scrut's Vendor Management Dashboard

    3. Comprehensive privacy policy builder

      Simplify the creation of transparent, COPPA-compliant privacy policies tailored to your audience, enhancing clarity and trust.

      Scrut's Privacy Policies Dashboard

      4. Continuous compliance monitoring

      Stay audit-ready with automated alerts for regulatory updates and deviations, ensuring ongoing adherence to COPPA standards.

      Scrut's Continuous Vulnerabilities Compliance Monitoring

      5. Global privacy alignment

      Utilize Scrut to harmonize COPPA compliance efforts with international regulations like the GDPR and the forthcoming EU AI Act, facilitating a unified approach to global privacy requirements.

      By leveraging these features, Scrut assists businesses in effectively navigating COPPA compliance, thereby safeguarding children’s privacy and maintaining regulatory adherence.

      Ongoing maintenance and monitoring for long-term compliance

      By incorporating the ongoing strategies shown below, businesses can maintain long-term compliance, mitigate risks, and uphold their commitment to safeguarding children’s privacy.

      Auditing and reporting

      Regular assessments are essential to ensure continued COPPA compliance. Scrut’s dashboard simplifies this by:

      • Providing real-time insights into compliance status.
      • Automating audit preparation with pre-built templates and centralized documentation.
      • Generating detailed reports to identify and address potential gaps in protecting kids’ privacy.
      Scrut's Auditing and Reporting Dashboard

      Employee training

      Compliance starts with a well-informed team. Scrut offers:

      • On-demand training modules tailored to COPPA requirements.
      • Interactive sessions to empower employees with the knowledge to manage and mitigate compliance risks.
      • Tools to track training completion and reinforce a compliance-focused culture.

      Staying ahead of changes

      The kids online safety and privacy act evolves alongside technology and privacy expectations. Scrut keeps your business prepared with:

      • Regulatory intelligence that monitors changes to COPPA guidelines.
      • Automated alerts to flag necessary adjustments.
      • Continuous updates to ensure compliance practices align with global frameworks like GDPR and the EU AI Act.

      Conclusion: Protecting children’s privacy is a strategic imperative

      Maintaining COPPA compliance goes beyond legal obligations—it builds trust, protects kids’ privacy, and demonstrates ethical responsibility. By leveraging tools like Scrut for centralized compliance, consent tracking, and real-time insights, businesses can simplify adherence to the kids online safety and privacy act. Proactively addressing challenges ensures not only regulatory compliance but also a strong reputation for safeguarding children’s data.

      Ensure your business is fully COPPA compliant with Scrut. Simplify age-gating, parental consent tracking, and compliance monitoring with our easy-to-use platform. Start protecting children’s privacy and stay ahead of regulatory changes today. Get started with Scrut and secure your COPPA compliance effortlessly!

      FAQs

      What is the COPPA I rule for children’s online privacy protection?

      The COPPA I rule is a federal regulation under the Children’s Online Privacy Protection Act that requires online services targeting children under 13 to protect their personal information. It mandates obtaining verifiable parental consent before collecting, using, or sharing a child’s data and ensures transparency through clear privacy notices.

      What does the children’s Online Privacy Protection Act require online operators targeting children to?

      The Children’s Online Privacy Protection Act (COPPA) requires operators of child-directed websites, apps, and online services to:

      • Obtain verifiable parental consent before collecting personal information.
      • Provide clear and comprehensive privacy policies.
      • Secure children’s data from unauthorized access.
      • Minimize data collection to what is necessary and delete it when no longer needed.

      What are the requirements for the children’s Online Privacy Protection Act?

      To comply with COPPA, businesses must:

      • Notify parents about their data collection practices.
      • Obtain verifiable parental consent.
      • Allow parents to review and delete their child’s data upon request.
      • Implement robust data security measures.
      • Limit data retention to essential purposes.

      These measures ensure adherence to the kids online safety and privacy act and protect kids’ privacy in the digital ecosystem.

      What is the children’s online privacy protection rule not just for kids sites?

      The COPPA rule applies not only to child-directed websites but also to general-audience platforms that knowingly collect data from children under 13. Additionally, third-party services like ad networks or plug-ins used by child-focused sites must also comply, ensuring comprehensive protection for kids’ privacy.

      Does COPPA apply to all websites?

      No, COPPA does not apply to all websites. It specifically targets:

      • Child-directed websites and services.
      • General-audience websites that knowingly collect data from children under 13.
      • Third-party services, such as analytics tools, process children’s data.

      Websites or services not engaging with children or their data are not subject to COPPA regulations.

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