FTC Proposes Revisions To COPPA Rule, Seeks Public Comment (Advertising Law News & Analysis - August 2, 2012)

Edited by Jeffrey D. Knowles , Roger Colaizzi , Gary D. Hailey and Gregory J. Sater

NEWS

FTC Proposes Revisions to COPPA Rule, Seeks Public Comment

The Federal Trade Commission (FTC) this week announced a further notice of proposed rulemaking concerning proposed changes to its Children's Online Privacy Protection Rule (COPPA Rule). In September 2011, the FTC issued a notice of proposed rulemaking and sought public comments on proposed changes to the Rule. The FTC received more than 350 comments in response to its request. Now the Commission is seeking additional public comments because its proposed changes to the COPPA Rule diverge from the changes originally proposed in 2011.

Among the changes proposed by the FTC are the modification of several definitions such as "operator," "website or online service directed to children," "personal information" and "support for internal operations." In addition, the proposed revisions would clarify the responsibilities of websites that are "child-directed," as well as the responsibilities of websites that contain child-oriented content but attract a diverse audience of young children and individuals older than 13.

The FTC will accept public comments on the proposed changes until September 10, 2012.

Click here to read the FTC's press release and access the full text of the Federal Register notice announcing the proposed changes and comment period.

FTC Provides Comments on Reloadable Cards to CFPB

The FTC announced this week that the staff of the Commission's Bureau of Consumer Protection had provided comments to the Consumer Financial Protection Bureau (CFPB) supporting expanded protections for users of general-purpose reloadable (GPR) cards. The comments are in response to the CFPB's advance Notice of Proposed Rulemaking, announced in May 2012, which sought comments, data and information from the public about the costs and benefits of extending additional protections to the users of GPR cards.

GPR cards are prepaid cards that are issued for a set amount but are also reloadable, so that consumers can add funds to the cards. Use of GPR cards, like other so-called gift cards, has skyrocketed over the past several years. Both the CFPB and FTC are concerned that users of the cards may not be aware that certain federal laws that apply to other types of payment cards, such as credit and debit cards, do not apply to GPR cards.

In its Notice of Proposed Rule Making, the CFPB advocates for the extension of...