Introduction In today’s digital landscape, protecting children's privacy online is a crucial priority for advertisers, publishers, and technology providers. The Children’s Online Privacy Protection Act (COPPA) is a U.S. federal law designed to safeguard the personal data of children under 13. As a leader in media technology, Amagi is committed to ensuring compliance and transparency in digital advertising practices. This article provides an overview of COPPA and its implications for the digital advertising industry.
What is COPPA? The Children’s Online Privacy Protection Act (COPPA) is a U.S. regulation enforced by the Federal Trade Commission (FTC) that governs how websites, apps, and online services collect, store, and use personal information from children under the age of 13. The law applies to businesses that operate online platforms targeted at children or knowingly collect personal information from young users.
COPPA is built on key compliance requirements, including:
- Parental Consent – Businesses must obtain verifiable parental consent before collecting personal data from children.
- Data Minimization – Only necessary personal data should be collected, and unnecessary data should not be retained.
- Transparency & Disclosure – Companies must provide a clear privacy policy outlining data collection practices.
- Security & Confidentiality – Collected personal data must be securely stored and protected from unauthorized access.
- Parental Control – Parents must have access to review, modify, or delete their child's personal information.
- Limited Third-Party Sharing – Personal data cannot be shared with third parties unless necessary for permitted purposes.
Who Does COPPA Apply To? COPPA applies to:
- Websites and online services directed at children under 13.
- General-audience platforms that knowingly collect personal information from children.
- Third-party service providers that process children's data on behalf of covered entities.
Any digital publisher or advertiser that interacts with children’s content must ensure COPPA compliance.
Key COPPA Requirements To comply with COPPA, companies must implement the following measures:
- Parental Notice & Consent: Obtain parental consent before collecting, using, or sharing children’s personal data.
- Privacy Policy Updates: Maintain a clear, accessible privacy policy that explains data collection practices.
- Data Security Measures: Implement robust security practices to protect children’s data from breaches and unauthorized access.
- Limited Data Retention: Delete personal data once it is no longer necessary for the original purpose.
- Parental Rights Mechanisms: Provide parents with access to review or request the deletion of their child's data.
- Ad Targeting Restrictions: Avoid behavioral advertising targeting children without parental consent.
- Third-Party Compliance: Ensure that vendors and third-party service providers comply with COPPA requirements.
What Are the Penalties for Non-Compliance? The FTC can impose fines of up to $43,280 per violation, which can lead to substantial financial penalties for companies failing to comply. Non-compliance can also result in reputational damage and loss of consumer trust.
How Should Companies Prepare for COPPA? Companies should conduct internal audits, update privacy policies, and establish parental consent processes to align with COPPA regulations. Consulting legal experts and implementing compliance technologies can further ensure adherence to the law.
Amagi’s Commitment to COPPA Compliance At Amagi, we prioritize child data protection, transparency, and compliance with COPPA regulations. Our solutions help media partners navigate regulatory challenges and implement best practices for responsible data collection and advertising targeting children’s content.
For more information on how Amagi can assist with COPPA compliance, contact us today!