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FTC seeks comment on Web privacy for children
WASHINGTON (8/7/12)--Credit unions that offer programs and products aimed at children--like an online savings club for kids--would have to take additional steps to get parental permission before obtaining information from the children, as a result of proposed rules issued for a 30-day comment period by the Federal Trade Commission (FTC).

The rule would clarify the definition of which entities would be required to obtain parental consent before collecting information about users under 13.  Its focus would be on third-party partners.

Currently, websites aimed at children must receive parental permission before collecting identifiable information such as names and e-mail addresses.

The FTC said the 1998 Children's Online Privacy Protection Act, which mandated parental permission in many cases, "did not foresee how easy and commonplace it would become for child-directed services to integrate social networking and other personal information collection features into the content offered to their users, without maintaining ownership, control, or access to the personal data."

Written comments must be received by Sept. 10.

Use the resource link to read the complete FTC proposal.
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