FTC COPPA Compliance Deadline Is April 22: Small Business Owners Must Act Now

As a small business owner, you’re likely aware of the importance of protecting customer data, but did you know that collecting data from children under 13 comes with its own set of regulations? With the FTC’s updated COPPA rule, businesses must now take extra steps to ensure they’re compliant by April 22 – just one week away.

What Happened

The Federal Trade Commission (FTC) has updated the Children’s Online Privacy Protection Act (COPPA) rule, which requires businesses that collect data from children under 13 to take additional measures. According to the BBB Programs source, the new rules state that businesses must retain child personal data only as long as necessary and disclose all third-party data recipients. This means that if your business collects data from children under 13, you’ll need to review your current practices and make any necessary changes.

As Albert Steed notes in his recording, “The FTC COPPA compliance deadline is April 22nd. That’s two days from today. COPA rules require businesses to retain child personal data only as long as necessary.” This means that if your business collects data from children under 13, you’ll need to review your current practices and make any necessary changes.

What This Means for Your Business

The updated COPPA rule has significant implications for small business owners. Not only will you need to update your data collection and retention policies, but you’ll also need to disclose all third-party data recipients. This could lead to increased operational costs as you work with vendors to ensure they’re complying with the new rules.

For example, let’s say your business collects email addresses from children under 13 for a newsletter or promotional purposes. Under the updated COPPA rule, you’ll need to retain this data only as long as necessary and disclose all third-party recipients. This could mean updating your website, marketing materials, and contracts with vendors.

The Bottom Line

Here are three action items to help you get started:

• Review your current data collection and retention policies to ensure they comply with the updated COPPA rule.
• Identify all third-party data recipients and update your disclosures accordingly.
• Work with your vendors to ensure they’re complying with the new rules.

Need help? Schedule a free IT consultation to get started.