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FTC Proposes Ban on Meta Profiting Off Children’s Data

FTC has also proposed new rules that would require companies to obtain explicit consent from consumers.
The Federal Trade Commission (FTC) has accused Facebook of violating its 2019 privacy agreement by allowing advertisers to target children with ads based on their activity on other apps and websites. The FTC has proposed a ban on Meta from profiting off children's data and a blanket prohibition on any company monetizing the data of children aged under 13.

According to the FTC, Facebook’s Messenger Kids app, which is aimed at children under 13, was also used to gather data on children's activity that was used for advertising purposes. The Messenger Kids app is designed to allow children to communicate with friends and family in a safe and controlled environment, but the FTC alleges that Facebook failed to adequately protect children's data and privacy.

The proposed ban would prevent Meta from using children's data to target ads or sharing such data with third-party advertisers. The FTC also suggested that the company should provide parents with greater control over the data that is collected about their children.

Facebook has responded to the FTC's allegations, stating that it has taken significant steps to protect children's privacy, including requiring parental consent before children can use the Messenger Kids app. The company has also stated that it will continue to work with the FTC to resolve any concerns and will take any necessary steps to comply with the law.

The proposed ban on profiting off children's data is part of a wider crackdown by regulators on big tech companies and their data practices. The FTC has also proposed new rules that would require companies to obtain explicit consent from consumers before collecting or sharing their personal information.

In addition to the FTC's proposed ban, lawmakers in the US have also proposed new legislation that would strengthen privacy protections for children online. The bill, known as the Children's Online Privacy Protection Modernization Act, would update the Children's Online Privacy Protection Act (COPPA) to reflect changes in technology and the way children use the internet.

The proposed legislation would require companies to obtain parental consent before collecting any personal information from children under 16, and would also establish a new agency to oversee online privacy protections for children.

The proposed ban on profiting off children's data, along with the proposed legislation, highlights the growing concern among lawmakers and regulators over the use of personal data, particularly when it comes to vulnerable groups such as children. While companies may argue that they are taking steps to protect privacy, regulators are increasingly taking a tougher stance and pushing for more stringent rules to ensure that individuals' data is properly safeguarded.
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