The Federal Trade Commission adopted new rules (PDF) to protect children's privacy online on Wednesday, drawing praise from members of Congress and criticism from Web companies and app developers concerned about implementing the rules. Senate Commerce Chairman Jay Rockefeller, D-W.Va., and Sen. Mark Pryor, D-Ark., joined Congressional Privacy Caucus Co-Chairmen Edward Markey, D-Mass., and Joe Barton, R-Texas, at the press conference to praise the rules, while House Energy and Commerce ranking member Henry Waxman, D-Calif., also welcomes the changes in the statement below. FTC Chairman Jon Leibowitz said the rules didn't go as far as the agency initially proposed in response to industry concerns, but that didn't stop tech trade groups from declaring the requirement too broad and difficult for small startups to implement.
The changes to the 1998 privacy law known as COPPA (PL 105-277) are designed to bring the law up to date with the latest technologies, particularly mobile devices such as smartphones, which often record and transmit a host of information without users' knowledge or consent. The changes aim to prevent websites and apps from collection geolocation data, photos, videos, and other personal data from children under the age of 13, data that is often used to target digital advertisements. The changes also expand the law to include third-party advertisers, and they require Web companies to develop a way for parents to approve privacy guidelines. The Center of Democracy and Technology, which generally advocates for stronger online privacy protections, argued the rules could confuse companies as to whether their sites apply. A new trade group representing mobile app developers argued the rules could prevent children from gaining access to educational tools.
Regardless, the FTC appears empowered to enact and implement the changes independently, which means industry criticism is unlikely to force the agency to scale back the regulations, barring the passage of legislation from Congress.
Quotable: “With the carefully considered changes to the COPPA rule finalized today, the FTC is ensuring that COPPA continues to meet its goal of keeping parents in control of their children’s information, including their location, their photographic images, and records of their online habits and activities. Congress was well aware that technology can change quickly and gave the FTC enough flexibility and discretion to make sure the law could evolve with technology. In the 14 years since COPPA was enacted, how children interact with online services has changed dramatically as these services have become accessible from almost anywhere on ever-smaller mobile devices. The techniques used to collect information about all of us have also changed, becoming both more prolific and opaque.” — Rep. Henry Waxman Leahy Stays Put at Judiciary: Senate Judiciary Chairman Patrick Leahy will remain in his position rather than assuming the gavel for the Senate Appropriations Committee, CQ confirmed on Wednesday. The Vermont Democrat was expected to exercise his seniority and take over Appropriations, but that position will now go to Sen. Barbara Mikulski, D-Md. Sen. Dianne Feinstein, D-Calif., will now remain as Chairwoman of the Senate Intelligence Committee. Leahy's decision means Hollywood will still have a strong ally in charge of intellectual property, privacy, and other Web-centric policy issues. Feinstein had been expected to champion gun control, had she taken over Judiciary as expected. Rockefeller Bill Calls for Study of Violence in Media: Senate Commerce Chairman Jay Rockefeller, D-W.Va., introduced a bill on Tuesday night calling for the National Academy of Sciences to study the impact of violence in video games and other media on children. Rockfeller acknowledged that there is no evidence that the killer at Sandy Hook Elementary last week was influenced by violent media, but he said the incident should nevertheless prod Congress into studying children's exposure to violent content. The issue has been a pet cause for Rockefeller through his term as chairman. His bill would direct the academy to investigate whether violent media leads to aggression in children, and whether the increased interactivity of games that can be played online is having a unique impact. As we've mentioned, the Supreme Court last year struck down a California law banning the sale of overly violent video games in children, ruling that the obscenity exception to the First Amendment applies only to sexual content. Google Expected to Settle E.U. Antitrust Probe: The Economist's European Voice reports that Google will likely present a detailed list of commitments to address concerns raised during the European Union's ongoing antitrust probe of the search giant. The news that EU regulators were poised to obtain greater concessions from Google than their American counterparts at the FTC has been blamed for the agency's decision to extend its probe of Google into January. Google has reportedly agreed to address concerns about the way it presents its own products in relation to its search results, a key concern that was reportedly not going to be addressed by the tentative settlement discussed with the FTC. We will be watching closely to see how Google allays monopolistic concerns in Europe, where it holds over 90 percent of the search market. U.S. officials will doubtless push for similar remedies in their updated negotiations. CRS Report on FCC's Lifeline Phone Program for Low-Income Subscribers (PDF) Goodlatte Tweaks Judiciary Panels: Incoming House Judiciary Chairman Bob Goodlatte, R-Va., released the committee's subcommittee assignments for the 113th Congress this week, revealing some slight changes in the jurisdictions of the panels. Replacing Goodlatte atop the Subcommittee on Courts, Intellectual Property and the Internet will be Rep. Howard Coble of North Carolina. That subcommittee's name has also been tweaked to reflect its newfound focus on intellectual property and other digital crime issues, particularly in light of the battle over the Stop Online Piracy Act last year. Goodlatte is a strong ally of content creators seeking stronger online copyright enforcement, sponsoring both SOPA and the Pro IP Act in 2008. Final Defense Bill Eases Satellite Export Controls: The final version of the fiscal 2013 defense authorization bill would relax long-standing restrictions on the export of satellites, in hopes of opening new markets for companies to export their commercial products. The compromise bill (HR 4310) is expected to pass both chambers by the end of the week, and it would restore the president's authority to move satellites and related technologies from the U.S. Munitions List to the less-stringent Commerce Control List. The bill still requires a report to Congress on the efforts of certain countries to obtain satellites and related equipment.