Compliance Blog

Written by Steve Van Beek

NAFCU Members: The October issue of NAFCU's Compliance Monitor is now available.  This month's issue includes articles on the CFPB's Rulemaking Procedures as well as NCUA's Golden Parachutes regulation.  

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The Federal Trade Commission (FTC) has issued a proposed rule to update the Children's Online Privacy Protection Act (COPPA) regulations.

In 2010, the FTC asked for public comment on COPPA and after receiving that input - moved forward with this proposed rule.  Here is from the press release:

"The Children’s Online Privacy Protection Act (COPPA) requires that operators of websites or online services directed to children under 13, or those that have actual knowledge that they are collecting personal information from children under 13, obtain verifiable consent from parents before collecting, using, or disclosing such information from children. The FTC’s Rule implementing the COPPA statute became effective in 2000.

The FTC previously reviewed the COPPA Rule in 2005 and retained it without change. In light of rapidly evolving technology and changes in the way children use and access the Internet, in 2010 the FTC initiated another review of the Rule on an accelerated schedule. On April 5, 2010, the FTC sought public comment on every aspect of the COPPA Rule, posing numerous questions for the public’s consideration. In addition, the FTC held a public roundtable and reviewed 70 comments received from industry representatives, advocacy groups, academics, technologists, and individual members of the public."

The FTC does have existing FAQs on COPPA that might be a useful resource.

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NCUA also has existing information on COPPA in its Examiner's Guide.  Here is a link to Appendix 19E on COPPA.