The FTC recently released their report, “Beyond Voice: Mapping the Mobile Marketplace,” as a follow-up to the FTC’s May 2008 public town hall meeting which explored new developments associated with mobile devices and their impact on mobile commerce. One of the main concerns of the new report is how the ability of “smartphones” and other mobile devices to access the web presents a unique challenge to protecting children’s privacy.
The report noted that the U.S. currently has no laws specifically governing mobile marketing campaigns aimed at children. The panelists requested that the FTC revisit and clarify its COPPA rule to require affirmative express consent from parents when advertisers collect information used to send individualized ads to children as part of behavioral advertising in mobile marketing. For example, through the use of cookies, though identifying when information is being collected from minors could often pose a challenge. The FTC staff agreed to expedite the review of the COPPA rule to determine whether it should be modified to address changes in the mobile marketplace. The review will now occur in 2010 instead of the original 2015 date. The panelists also called upon lawmakers to consider adapting and updating COPPA so that the law clearly applies to the mobile web. In addition, the panelists urged further discussion on the possibility of a Do Not Call registry governing minor’s mobile numbers.
The panelists also highlighted industry guidelines and industry best practices they believed helped protect children’s privacy, such as requiring a “double opt-in” when registering for certain texting services and avoiding use of the word “free” in children’s campaigns when standard rates and other charges apply. Several panelists, however, questioned whether industry guidelines and best practices went far enough to protect children. They stated that current disclosures may not indicate how a child’s mobile phone number will be used or whether it will be provided to third parties, and that more controls should be placed on general audience advertising that is likely to appeal to significant numbers of children. The panel did, however, conclude that a complete ban on child-directed mobile advertising was not warranted. We expect there will be additional informational gathering by the FTC, as well as opportunities for comment regarding any proposed changes to COPPA’s rules.
