DMA Asks FTC to Extend COPPA Rule Changes1 May, 2013 By: Doug McPherson
WASHINGTON – The Direct Marketing Association (DMA) has asked to the Federal Trade Commission (FTC) to extend the effective date for the amendments to the Children’s Online Privacy Protection Act (COPPA) Rule from July 1, 2013 to Jan. 1, 2014.
Nearly 20 other trade groups joined the DMA in the request, including the U.S. Chamber of Commerce, Association of National Advertisers, Motion Picture Association of America, National Association of Broadcasters and National Retail Federation.
The FTC announced its update to the COPPA Rule in December 2012 and gave the business community six months to implement them. The amendments add data practices and data-collecting entities that were not previously subject to COPPA. For example, the final rule makes first-party operators liable for third-party data collection activities that benefit the first party. Third parties will also be liable if they have actual knowledge that they are collecting personal information on a site or service that is directed to children. DMA prepared a full analysis of the amendments for its members at the time of release.
DMA noted in its request that businesses have found that the amendments significantly impact the long-standing business model that these companies have relied upon in planning the capabilities of their products and services since COPPA’s inception. DMA also noted that implementing the amendments has been difficult with the direction of FTC’s promised frequently asked questions, which are not expected until this month.
“A modest delay until January 1, 2014 will allow the business community to ‘get it right’ the first time, and fully implement strategies for compliance with the COPPA Rule to guide their businesses for years to come,” the DMA stated in the request.