--- title: "US Officials proposes new limits to use children's data for making money" description: "Big Tech's Data Mine on Hold: FTC Proposes Stricter Rules for Children's Data" author: "Saumya Mishra" published: 2023-12-21 updated: 2023-12-21 canonical: https://www.mindstick.com/news/3651/us-officials-proposes-new-limits-to-use-children-s-data-for-making-money category: "technology" tags: ["facebook", "youtube", "money", "usa", "children"] reading_time: 2 minutes --- # US Officials proposes new limits to use children's data for making money **In a major move aimed at protecting children's [online privacy](https://www.mindstick.com/articles/13076/are-you-done-experimenting-with-your-online-privacy-set-up-your-own-vpn), the Federal Trade Commission (FTC) has proposed [significant changes](https://answers.mindstick.com/qa/115357/what-significant-changes-have-been-made-to-immigration-laws-in-major-countries-this-week) to the Children's Online** [**Privacy**](https://www.mindstick.com/blog/302789/15-privacy-compliance-platform-solutions-for-enhanced-data-protection) **Protection Rule (COPPA).** This proposal, if implemented, would impose stricter limits on how [tech](https://www.mindstick.com/services/technologies) giants collect, use, and profit from the data of users under 13. ## Key Highlights: - **Tighter Parental Control:** Companies would need "separate verifiable parental consent" to share most children's data with advertisers and third parties. - **No Data-for-Access Gatekeeping:** Platforms cannot bar children from activities for refusing [data collection](https://answers.mindstick.com/qa/105129/how-to-use-mobile-devices-for-data-collection-in-business). - **Schools Control Education Tech Data:** Schools could bar [educational technology](https://www.mindstick.com/blog/301441/the-use-of-technology-in-education) providers from using student data for commercial purposes. ## Unplugging the Data Drain: The FTC's proposal comes [amidst growing](https://answers.mindstick.com/qa/114169/what-are-the-key-challenges-facing-the-tech-industry-amidst-growing-concerns-about-privacy) concerns about the mental health impacts of algorithms used by platforms like [YouTube](https://www.mindstick.com/articles/12605/seo-in-youtube) and Facebook to keep young users engaged. Critics argue that these algorithms prioritize profit over children's well-being, exposing them to harmful content and addictive behaviors. ## Under the Hood of the Proposed Changes: **Consent for Monetization:** Companies would need explicit parental approval before using children's data for targeted advertising or other forms of monetization. **Nudge-Proof Notifications:** [Push notifications](https://answers.mindstick.com/qa/116274/push-notifications-stop-working-but-in-app-notifications-work) designed to keep kids online would be restricted. **School Data Sanctuary:** Schools would have [greater control](https://answers.mindstick.com/qa/38386/people-of-which-country-has-voted-to-leave-the-european-union-eu-after-a-historic-referendum-to-take-greater-control-of-its-economy-and-its-borders) over student data collected by educational technology providers, ensuring it's used solely for educational purposes. ![US Officials proposes new limits to use children's data for making money](https://www.mindstick.com/usernews/655071/6c4ccff0-30a9-4dc6-8bf4-c4874e22be91/images/0c74ff77-34f9-4d42-a019-be2237d19182.jpg) ## Taking Public Feedback: The FTC is seeking public comments on the proposed rule for 60 days. This opens a critical window for advocates, educators, and parents to voice their concerns and shape the final regulations. **The future of children's online privacy hinges on this pivotal proposal. By demanding stricter data protections and empowering parents and schools, the FTC is paving the way for a healthier and safer digital environment for young users.** --- Original Source: https://www.mindstick.com/news/3651/us-officials-proposes-new-limits-to-use-children-s-data-for-making-money Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.