HomeTechnologyAmerica has proposed higher limits on making money from children's data.


Big tech companies, such as YouTube owner Alphabet and many others, would face more limits on how they use children’s data to boost profits under a proposal introduced by the Federal Trade Commission on Wednesday.

The FTC said in a notice of proposed rulemaking that it is considering changing the Children’s Online Privacy Protection Rule to impose more restrictions on when and how companies can monetize children’s data.

It would also limit how companies can use information to nudge children to stay online. This rule affects companies that collect personal information about users under the age of 13.

“Children should be able to play and learn online without being constantly tracked by companies looking to collect and make money from their personal data,” FTC Chairwoman Lena Khan said in a statement. “The proposed changes to COPPA are much needed, especially in an age where online tools are essential to conducting daily life.”

Since many platforms and websites on the Internet are free, companies rely on advertising to pay the bills. They try to customize advertising using information about users that indicates what they might be interested in.

Critics have accused the platform of failing to address the mental health harm caused by the algorithms used by the platforms to engage young people.

Under the proposed changes, companies would have to obtain “separate verifiable parental consent” to share most information about children with advertisers and other third parties.

The proposed changes would reinforce that companies cannot restrict children from an activity if they refuse permission to collect personal data and would bar companies that provide educational technology to school districts from collecting personal data for a commercial purpose. This will allow you to stop using any information received.

The FTC said it would accept comments on the rule for 60 days.

Neither Alphabet nor Meta immediately responded to requests for comment.

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