COPPA's New PII Rules: The Business Impact of Biometric Data Compliance
The FTC's updated COPPA Rule now includes biometric data like facial templates and faceprints. Discover how this impacts business practices and children's pr...
Key Takeaways
- The updated COPPA Rule now classifies biometric data as personally identifiable information (PII), requiring strict compliance measures.
- Companies must obtain verifiable parental consent (VPC) before collecting biometric identifiers from children.
- School systems and educators must reevaluate the use of biometric tools in the classroom to ensure children's data is protected.
- Non-compliance could lead to significant legal and reputational risks.
The Business Impact of COPPA's Expanded PII Rules
The Federal Trade Commission (FTC) has recently updated the Children’s Online Privacy Protection Act (COPPA) Rule, expanding the definition of personally identifiable information (PII) to include biometric identifiers such as facial templates and faceprints. This significant change has far-reaching implications for businesses, educational institutions, and anyone involved in the collection and management of children's data.
Understanding Biometric Data in COPPA
Biometric data, including facial templates and faceprints, has become a crucial aspect of modern technology. These identifiers are unique, permanent, and can be used to identify an individual even without a traditional photo or other obvious personal information. A facial template is a mathematical model capturing the geometry of a face, while a faceprint is a digital 'signature' of a child’s face, similar to a fingerprint.
Why This Matters for Businesses
The inclusion of biometric data in COPPA's PII definition means that companies must treat this data with the same rigor as other personal information. This includes obtaining verifiable parental consent (VPC) before collecting, using, or disclosing biometric identifiers. The new rules also require clear, comprehensive privacy notices and compliance with data retention policies.
Key Responsibilities Under the Amended COPPA Rule
- Verifiable Parental Consent (VPC): Companies must obtain VPC before collecting biometric data from children. This can be achieved through various methods, including text messages and knowledge-based authentication (KBA).
- Clear Privacy Notices: Businesses must provide transparent and comprehensive privacy notices that explain how biometric data is collected, used, and shared. This includes disclosing any third parties involved in the data handling process.
- Data Retention and Deletion: Companies must follow strict data retention policies and ensure that biometric data is deleted when no longer necessary. They must also honor parents' requests to view or delete their child’s personal information.
- Vendor Compliance: Businesses are responsible for ensuring that any third parties they share biometric data with comply with COPPA. This includes reviewing and updating third-party agreements to include COPPA compliance clauses.
The Impact on Educational Institutions
School systems and teaching staff must also adapt to the new COPPA rules. The use of biometric tools in the classroom, such as facial recognition for attendance or security, must be reevaluated to ensure compliance. This involves obtaining VPC from parents, providing clear privacy notices, and implementing robust data management practices.
Steps to Ensure Compliance
- Audit Data Practices: Identify all sources of biometric data, including apps, devices, and third-party tools. Follow the data through its entire lifecycle, from collection to deletion.
- Update Privacy Policies: Clearly disclose your collection of biometric data and any third parties involved. Ensure that your privacy policies are easily understandable and accessible to parents.
- Review Third-Party Agreements: Ensure that all vendors and third parties comply with COPPA. This includes regular audits and updates to agreements to reflect new compliance requirements.
- Implement VPC Mechanisms: Use verifiable methods to obtain parental consent. This can include text messages, KBA, and other secure methods.
- Update DSAR Processes: Ensure that your processes for handling data subject access requests (DSARs) include biometric data. When a parent requests to view or delete their child’s personal information, include biometric data in the response.
- Train Staff: Educate your team on the new COPPA requirements and the importance of handling children’s personal information responsibly.
The Economic and Legal Risks of Non-Compliance
Non-compliance with the updated COPPA Rule can result in significant legal and reputational risks. The FTC has the authority to impose fines and other penalties for violations, which can be costly for businesses. Additionally, a data breach involving children’s biometric data could severely damage a company’s reputation and customer trust.
The Bottom Line
The amended COPPA Rule brings biometric data into the spotlight, requiring businesses and educational institutions to adopt new practices to protect children’s privacy. By understanding and implementing these changes, companies can ensure compliance, avoid legal risks, and build trust with their customers and the broader community.
Frequently Asked Questions
What is a facial template, and why is it important under the new COPPA Rule?
A facial template is a mathematical model capturing the geometry of a face, including landmarks such as eyes, nose, and jawline. Under the new COPPA Rule, facial templates are considered personally identifiable information (PII) and must be protected with verifiable parental consent (VPC) and clear privacy notices.
How can businesses obtain verifiable parental consent (VPC) for collecting biometric data?
Businesses can obtain VPC through various methods, including text messages, knowledge-based authentication (KBA), and other secure methods. The key is to ensure that the consent is verifiable and can be documented.
What are the legal consequences of non-compliance with the updated COPPA Rule?
Non-compliance with the updated COPPA Rule can result in significant legal penalties, including fines imposed by the FTC. Additionally, a data breach involving children’s biometric data can damage a company’s reputation and customer trust.
How should educational institutions adapt to the new COPPA requirements?
Educational institutions should reevaluate the use of biometric tools in the classroom, obtain verifiable parental consent (VPC), provide clear privacy notices, and implement robust data management practices to ensure compliance with the new COPPA Rule.
What steps can businesses take to ensure third-party compliance with COPPA?
Businesses should review and update third-party agreements to include COPPA compliance clauses. Regular audits and ongoing communication with vendors are essential to ensure they adhere to the new requirements.
