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The Murky World of Online Privacy

BY David J. Shaw
January 30, 2013

The time has long passed when companies of any size, in any industry can take a lax approach to privacy policies. Between California starting to enforce its online privacy law, and the FTC making changes to federal regulations regarding the online use of information from children, closer scrutiny than ever is being paid to this issue. And that scrutiny comes with hefty fines and legal implications that can ensnare any company with an online presence or mobile application. This article examines the compliance issues raised by California's Online Privacy Protection Act, and the FTC's recent changes to the federal Children's Online Privacy Protection Act, and what companies must do to ensure they are not in violation.

California's COPPA

The California Online Privacy Protection Act of 2003 (COPPA), is now being enforced by the California Attorney General's Office. Violations of COPPA carry a heavy penalty at $2,500 per violation. Especially when pertaining to mobile application downloads, such a hefty fine multiplies quickly. Yet, analysis of company's compliance level, and potential remediation if needed, can be easily achieved while still maintaining cost-consciousness. The key is to understand what is required by COPPA and to review existing policies accordingly, or to immediately implement new policies where necessary.

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