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Internet Groups Complain About COPPA Compliance Costs

CHILDREN’S PRIVACY—U.S.

July 10, 2013

Internet groups have complained to the Federal Trade Commission (FTC) that new regulations to protect children’s privacy online are financially burdensome to start-ups, Los Angeles Times reports. The regulations went into effect July 1 and not only hold sites and apps that collect data from children under 13 responsible for ensuring parental consent but also for any affiliated third-party services collecting data on their sites. The FTC estimates annual compliance costs for current web services at $6,223 and new services at $18,670. The report states 85 percent to 90 percent of the web services are run by small businesses.
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