benign and that collecting information about children's online
activities is necessary to deliver the advertisements that finance
free content and services for children.
"What is the harm we are trying to prevent here?" said Alan L.
Friel, chairman of the media and technology practice at the law firm
Edwards Wildman Palmer. "We risk losing a lot of the really good
educational and entertaining content, if we make things too
difficult for people to operate the sites or generate revenue from
the sites."
The economic issue at stake is much bigger than just the narrow
children's audience. If the F.T.C. were to include customer code
numbers among the information that requires a parent's consent,
industry analysts say, it might someday require companies to get
similar consent for a practice that represents the backbone of
digital marketing and advertising -- using such code numbers to
track the online activities of adults.
"Once you've said it's personal information for children that
requires consent, you've set the framework for a requirement of
consent to be applied to another population," Mr. Friel said. "If it
is personal information for someone that's 12, it doesn't cease
being personal information when they are 13."
Indeed, many of the F.T.C.'s proposed rule revisions have vocal
detractors.
Take, for example, the agency's plan to require companies to get
parental permission before collecting photographs, videos or voice
recordings from children younger than 13. The idea makes sense to
some leading privacy researchers, who say that facial recognition
technology could allow strangers to identify and possibly contact
children.
"Because of advances in facial recognition technology, photos are
increasingly identifiable by third parties and not anonymous," said
Alessandro Acquisti, an associate professor of information
technology and public policy at Carnegie Mellon University in
Pittsburgh.
Children, he added, often have difficulty understanding the long-
term risks of sharing intimate details like photos of themselves.
"You might get an immediate benefit from uploading a photo because
you get your face close to the mascot," he said, referring to
mascots for food and toy companies, but the cost "comes much later."
But the proposed regulation of children's photos could interfere
with a popular marketing technique that involves encouraging
children to submit photos or videos of themselves online as a way to
increase their engagement with a brand. Toy makers, for one, say the
F.T.C. has gone too far.
"So long as reasonable methods to assure that the photo, video or
audio file, or facial recognition technology, does not include
contact details, this sort of engagement does not pose a privacy
risk to kids," Carter Keithley, president of the Toy Industry
Association, wrote in comments to the F.T.C.
An agency proposal to hold sites and apps liable for the data
collection practices of their third-party analytics or advertising
partners has also met with fierce opposition.
The Association for Competitive Technology, a trade group
representing more than 5,000 app developers, has estimated that
complying with such requirements could cost educational app
developers $250 million in legal fees. It could also dissuade some
developers who rely on free third-party software for features like
animation and social networking from designing products for
children, said Morgan Reed, the trade group's executive director.
"Children under 13 aren't enough of a market, aren't worthwhile
to spend the money on compliance and tolerate the risk of getting it
wrong," Mr. Reed said.
Facebook, which does not allow children who say they are younger
than 13 to register as members, and Twitter, which says its service
is not intended for those younger than 13, have criticized another
F.T.C. proposal: to hold third parties liable if they know or have
reason to know that they are collecting personal data on children's
sites.
The social networks say they cannot keep track of the many sites
that download their software plug-ins and therefore cannot know
whether they are inadvertently collecting data on children's sites.
Google and Apple made a similar argument, telling regulators that
app platforms like Android and the iTunes store should not be held
liable for the data collection practices of the children's apps they
sell.
Many children's advocates, however, have urged the agency to
impose the proposed revisions in full, arguing that a stricter rule
is needed to give parents greater control over the many entities
that track their children.
"Until there are some rules, marketers will continue to use what
they have to penetrate children's lives," said Kathryn Montgomery, a
professor of communications studies at American University who
helped lead the effort to get Congress to pass the original
children's online privacy law. "Without constraints, it could easily
get out of hand."
Regulators, for their part, said the planned new rules should not
inhibit companies from designing apps and sites for children. "The
choice they can make is not to engage with children," said Phyllis
H. Marcus, a senior attorney in the F.T.C.'s division of advertising
practices, "or they may seek parental consent and give robust
offerings."
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News Column
Social Sites Resist Child Privacy Protection
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Source: (C) 2012 International Herald Tribune. via ProQuest Information and Learning Company; All Rights Reserved
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