COPPA 2.0 compliance is just around the corner (July 1st, 2013). Whether your site is ready or not, you need to be asking, enquiring, and doing whatever you can to come up to par with the current regulations. There is a laundry list of provision’s the FTC has put in to place, and on their behalf, have offered reasonable responses and substantial time to comply.
Over the next week, Inversoft will supply shortened versions of the ‘Business and Parents and Small Entity Compliance Guide’.
Please remember, this is merely a simplified reference. For more detailed information refer to the link at the bottom of this page.

Image provided by Rolo del Campo
COPPA Enforcement
1. How does the FTC enforce the Rule?
For information on COPPA enforcement, click on the Case Highlights link in the FTC's Business Center. Parents, consumer groups, industry members, and others that believe an operator is violating COPPA may submit complaints to the FTC through the FTC’s Web site, www.ftc.gov, or toll free number, (877) FTC-HELP.
2. What are the penalties for violating the Rule?
Operators who are in violation of the Rule for civil penalties are liable up to $16,000 per violation. Potential factors the court may assess: how bad the violation, previous violations, the number of children involved, the amount and type of personal information collected, how the personal information was used, was it shared with third parties and the size of the company.
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COPPA 2.0 compliance is just around the corner (July 1st, 2013). Whether your site is ready or not, you need to be asking, enquiring, and doing whatever you can to come up to par with the current regulations. There is a laundry list of provision’s the FTC has put in to place, and on their behalf, have offered reasonable responses and substantial time to comply.
Over the next week, Inversoft will supply shortened versions of the ‘Business and Parents and Small Entity Compliance Guide’.
Please remember, this is merely a simplified reference. For more detailed information refer to the link at the bottom of this page.

General Questions 8 - 14
8. What should I do if I have a complaint about someone violating the COPPA Rule?
You may fill out a complaint form online at Consumer Complaint? Report it to the FTC. You also may call our toll free telephone number, (877) FTC-HELP, to submit your complaint to a live operator.
9. What types of online services does COPPA apply to?
Services that allow users to play online games, social networks, purchasing goods or services online, online advertisements, or interactions with other online content and services. Mobile applications that connect to the internet and geolocation based applications are also online services covered by COPPA
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COPPA 2.0 compliance is just around the corner (July 1st, 2013). Whether your site is ready or not, you need to be asking, enquiring, and doing whatever you can to come up to par with the current regulations. There is a laundry list of provision's the FTC has put in to place, and on their behalf, have offered reasonable responses and substantial time to comply.
Over the next week, Inversoft will supply shortened versions of the 'Business and Parents and Small Entity Compliance Guide'.
Please remember, this is merely a simplified reference. For more detailed information refer to the link at the bottom of this page.

GENERAL QUESTIONS (1 - 7) of 14
1. What is the Children’s Online Privacy Protection Rule?
The Children's Online Privacy Protection Act of 1998 (COPPA) is a United States federal law. Effective April 21, 2000, applies to the online collection of personal information by persons or entities under U.S. jurisdiction from children under 13 years of age.
Website owners/operators and online services (including mobile apps) must provide a privacy policy sharing when and how verifiable consent is collected from a parent or guardian, and the responsbilities that apply to the operator when protecting children's privacy and safety online.
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In online communities, it is common for members to want to create Internet personas that enable them to express themselves and establish an online social identity. By allowing users to choose unique public display names to represent the personas they aim to create, you encourage repeat interaction and engagement with the community. While it is vital to encourage these things, it is also important to ensure public usernames remain appropriate for your environment. The first step in doing so is to identify your target audience. You will most likely want to prevent profanities in usernames and may also need to prevent personally identifiable information (PII) for COPPA compliance in the case of under-13 communities. To do so, you have the choice to implement an automated profanity filter, employ human moderation, or utilize both. This post will cover the limitations, overhead, and assessment of risk for each approach.

Profanity Filter Challenge
Implementing an automated profanity filter to monitor username creation has several benefits. A filter can block obvious profanities and prevent members from using their real name. (Refer to the following link for more on Blocking PII). However, usernames are analogous to personalized license plates. Sometimes the meaning of the letter/number combination jumps out at you immediately, and other times it’s not so obvious. Consider the following examples (say the words out loud if the meanings are not obvious):
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The Federal Trade Commission announced yesterday it will not delay the July 1, 2013 date of implementation to update Children’s Online Privacy Protection Rule (COPPA). Over 19 trade associates have requested for an extension claiming more time is needed for the companies to transition and come up to par with current business practices. Many companies fear the significant impact that comes with COPPA 2.0 changes.

Extension Response from Commission Letter
Due to the “proliferation” of the digital market, including mobile devices, online social environments, virtual worlds and children's accessibility to these mediums the Commission noted the COPPA rule was on a “accelerated schedule.” 1.
Final amendments have been announced and Commission issues the statement of basis and purpose (SBP) and responds to analysis of public comments of obligated parties. Making note of costs and burdens of compliance as well as Commissions decision on the effective date of July 1, 2013 (Consistent with original rule and time frame of November 3, 1999 and its effective date on April 21, 2000). 2.
Commission responds it has provided sufficient guidance in regard to obligation of amended rule and responsible parties and its effective date is adequate.
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