How Does COPPA Impact Online Privacy for Children?
COPPA and Online Privacy for Children
HBO’s Silicon Valley spotlighted a very real legal risk for startups and online businesses: failure to comply with the Children’s Online Privacy Protection Act (COPPA). In the episode, a video-chat startup collapses after facing massive fines for collecting children’s data without proper safeguards, a dramatized outcome, but one rooted in reality. With COPPA penalties reaching up to $16,000 per child, noncompliance poses existential risks, especially for small businesses and startups with younger user bases.
What COPPA Covers and Who Must Comply — COPPA applies to commercial websites and online services directed at children under 13, as well as operators who knowingly collect personal information from that age group. While some nonprofits are exempt, organizations engaged in commercial activities, or operating for members’ commercial benefit, may still fall within COPPA’s scope under FTC authority.
Core Compliance Requirements Under COPPA — COPPA requires operators to post clear and comprehensive privacy policies, provide notice to parents, obtain verifiable parental consent, and allow parents to review or revoke access to their child’s information. Operators must also safeguard children’s data, limit data retention, and refrain from conditioning participation on excessive personal information disclosure.
Ongoing Criticism and Practical Challenges — Critics argue COPPA is difficult to enforce because children can easily misrepresent their age online, while others question whether the law restricts children’s First Amendment rights. Despite these concerns, enforcement remains serious, and the financial consequences of noncompliance continue to grow.
For more information, see our blog post COPPA and Online Privacy for Children.
Klemchuk PLLC is a leading IP law firm based in Dallas, Texas, focusing on litigation, anti-counterfeiting, trademarks, patents, and business law. Our experienced attorneys assist clients in safeguarding innovation and expanding market share through strategic investments in intellectual property.
This article is provided for informational purposes only and does not constitute legal advice. For guidance on specific legal matters under federal, state, or local laws, please consult with our IP Lawyers.
© 2024 Klemchuk PLLC | Explore our services