FTC Wants Parental OK for Kids to Give Data to Web Sites

Aiming to protect children’s privacy on the Internet, the Federal Trade Commission proposed a new rule Tuesday that would require online companies to obtain parental permission before collecting information from children.

If the rule goes into effect, it would place stringent new requirements on hundreds of Web sites that cater to children but until now have been virtually unregulated in the use of data they compile on users under age 13.

The commission described the proposal as the first step toward implementing the Children’s Online Privacy Protection Act, a federal law passed last year amid reports of a growing amount of data being gathered from children.

Robert Pitofsky, chairman of the FTC, said the agency’s goal is to put “parents in control of personal information that is collected from their children on the Web.”

The proposed rule, which may not be formally implemented until fall, would make companies subject to civil fines up to $11,000 for each time they collect information from children without parental consent. Sites would have to tell parents exactly what information they are collecting and how it would be used.

But the proposal is vague on a number of critical points, including exactly how to verify parental consent on the Internet, a largely anonymous medium.

FTC officials said that issue and others will be worked out in the coming months as the agency solicits feedback from the public, as well as companies that will be affected by the rule.

Many of the most popular Web sites for children have already begun requiring parental permission over the last year, partly because of pressure from privacy advocates and government officials.

“We substantially comply with the proposed rule right now,” said Larry Shapiro, senior vice president of business and legal affairs for Walt Disney Co.’s Buena Vista Internet Group. “When someone under 13 registers, we send a separate e-mail to parents and require their verification or approval.”

Disney is among the hundreds of Web sites that have sprung up in recent years vying for the attention of the growing population of children with Internet access.

Many of the sites attempt to build loyalty among children by enticing them to take part in games and contests in which they yield personal information--typically through a registration process--for the chance to win prizes.

But the proliferation of such sites has also prompted concerns among parents and privacy advocates, who say that children should be protected from unscrupulous marketers and others who might exploit children’s willingness to disclose telephone numbers, home addresses or other personal information.

Last year, a government survey of 212 commercial children’s Web sites found that 89% collected personal information from children, but only 24% posted privacy policies explaining how the information would be used. Only 1% required parental consent.

Executives at many leading online companies say they support parental consent requirements. But the various ways of obtaining such consent are often considered either too onerous or too unreliable.

FTC officials said they are inclined to allow some flexibility on this issue, and invited comments on options including using credit cards for authorization, consent forms sent via mail, toll-free phone numbers parents can call and e-mail consent forms accompanied by a digital signature.

The FTC plans to accept comments on the proposal until June 11. More information is available at the agency’s Web site, https://www.ftc.gov.