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In: Economics

An online backpack store sells many products that are popular with elementary school children. The store...

An online backpack store sells many products that are popular with elementary school children. The store knows some children under 10 subscribe to the store's coupon service. Is the store subject to the Children's Online Privacy Act?

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The Children’s Online Privacy Protection Act (COPPA) was enacted by the congress in order to provide protection to the children in online world. The law prevents collection of information of children aged below 13 years, without the consent of the parents. The firms that collect information related with children are required to give a privacy policy, to secure such information and avoid sharing it with third parties. The act is applicable to all the companies that collect information knowingly even though that is not the primary objective of the internet site. This generally leads many shopping sites to inadvertently violate COPPA.In the present case an online backpack store sells popular products to school children. The store has information about the coupon services that are used by the children who are below 10. The Children’s Online Privacy Protection Act (COPPA) provides that all the companies that knowingly store the information related with the children that are below the age of 13 years are required to disclose their privacy policy, to secure such information and avoid sharing it with third parties. Thus, the company would be subjected to COPPA as the company has knowingly stored information by way of having knowledge of its coupon services, availed by some children who were aged below 10 years.


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