New Rule Limits Companies’ Ability to Monetize Kids’ Data

January 17, 2025 | On January 16, The Federal Trade Commission (FTC) issued finalized changes to the Children’s Online Privacy Protection Rule that sets new requirements around the collection, use, and disclosure of children’s personal information. As part of the update to the Children’s Online Privacy Protection Act (COPPA), the final rule — widely referred to as COPPA 2.0 — shifts the burden from parents to providers to ensure that digital services are safe and secure for children.

The final rule requires parents to opt in to third-party advertising and includes other changes to address the emerging ways that consumers’ data is collected and used by companies, and particularly how children’s data is being shared and monetized.

Click here to read the full text of the final rule. The updated regulations will take effect 60 days after its publication in the Federal Register, but companies will have one year to comply — a timeline The Toy Association advocated for in written comments regarding the new rule submitted in March.

The COPPA Rule, which first went into effect in 2000, requires certain websites and other online services that collect personal information from children under the age of 13 to provide notice to parents and obtain verifiable parental consent before collecting, using, or disclosing personal information from these children. The rule was last updated in 2013 to reflect increased use of mobile devices and social media platforms.

Members may reach out to Joan Lawrence, senior vice president of standards & regulatory affairs at The Toy Association, about questions on this topic or with interest in joining The Toy Association’s Children’s Online Safety Committee.