The Obama administration has announced changes in the regulations that protect children under 13 who use the internet. The new laws intend to improve data protection and stop companies from exploiting the information children post on social media, gaming and networking sites.
The new laws will take effect in July, and will amend the Children's Online Privacy Protection Act of 1998, with regulations that surround cellphones, tablets, networking services and mobile applications.
Advertisers and marketers can reap significant profits by gaining information on the activities of child consumers, but at present, the Federal government believes businesses have too much access to information that could give away physical location, contact data or names of persons under 13. The Federal Trade Commission (FTC) has continued with plans to add new privacy rules for children, despite claims that it would stifle growth in the tech industry.
Small businesses developing and distributing children's software, much of which is social in nature or includes social gaming components, also occasionally syphon data to third parties operating on these applications. When a child enters a name and email address for a real-life friend with whom he or she would like to play mobile games, some of this information is often taken away and used for advertising or marketing purposes. New regulations would make this activity illegal in order to improve privacy protection as well as messaging security.
According to Research and Markets, changes in payment technology are also making it easier to purchase products on mobile devices. Whereas before, a child would have to walk up to a cash register, a son or daughter who gets a hold of a parent's credit card could wreak havoc on a smartphone or tablet. New laws may also extend to purchases on mobile devices, making it harder for children to buy online goods without parental consent.
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