program areas Digital Youth

EMBARGOED UNTIL DECEMBER 5, 2019 AT 12:01 AM Contact: Jeffrey Chester, CDD, jeff@democraticmedia.org (link sends e-mail), (202) 494-7100 Josh Golin, CCFC, josh@commercialfreechildhood.org (link sends e-mail); 617-896-9369 Leading child advocacy, health, and privacy groups call on FTC to Investigate Children’s Digital Media Marketplace Before Proposing any Changes to Privacy Protections for Children Threats to young people from digital marketing and data collection must be analyzed to ensure meaningful safeguards under the Children’s Online Privacy Protection Act (COPPA). WASHINGTON, DC and BOSTON, MA – December 5, 2019 – A coalition of 31 advocacy groups is urging the Federal Trade Commission to use its subpoena authority to obtain information from leading digital media companies that target children online. In comments filed today by the Institute for Public Representation at Georgetown and organized by Center for Digital Democracy (CDD) and the Campaign for a Commercial-Free Childhood (CCFC), the coalition explained the opaque data and digital marketing practices targeting kids. The comments are filed with the FTC as part of its early review of the rules protecting children under the Children’s Online Privacy Protection Act (COPPA). The advocates’ call was supported by Sesame Workshop, the leading producer of children’s educational programming, in a separate filing. To better assess the impacts on children from today’s digital data-driven advertising system, and features such as cross-device tracking, artificial intelligence, machine learning, virtual reality, and real-time measurement—the advocates urge the commission to gather and analyze data from leading companies that target children. Any proposed changes to COPPA must be based on empirical data, which is consistent with calls by Commissioners Wilson, Phillips, and Simons that rulemaking must be evidence-based. In their comments, the organizations ask the FTC to use its authority under rule 6(b) to: - Examine today’s methods of advertising to children and their impact, including their discriminatory effects - Examine practices concerning data collection and retention - Illuminate children’s presence on “general audience” platforms and those platforms’ awareness of children’s presence - Identify how the data of children is being used by contemporary data platforms, including “marketing clouds,” “identity management” systems, in-house data management platforms, and data brokers - Illuminate the efficacy—or lack thereof—of safe harbors Groups that have signed the comments are Campaign for a Commercial-Free Childhood; Center for Digital Democracy; American Academy of Pediatrics; Badass Teachers Association; Berkeley Media Studies Group; Center for Science in the Public Interest; Children and Screens; Color of Change; Common Sense Media; Consumer Action; Consumer Federation of America; Consumer Federation of California; Consumer Reports; Consumer Watchdog; Corporate Accountability; Defending the Early Years; Electronic Frontier Foundation; Electronic Privacy Information Center; Obligation, Inc.; Parent Coalition for Student Privacy; Parents Across America; Parents Television Council; P.E.A.C.E. (Peace Educators Allied For Children Everywhere) (link is external); Privacy Rights Clearinghouse; Public Citizen; Public Knowledge; The Story of Stuff; TRUCE (Teachers Resisting Unhealthy Childhood Entertainment); UnidosUS; United Church of Christ; and U.S. Public Interest Research Group (U.S. PIRG). …. The following can be attributed to Kyle Yasuda, MD, FAAP, President, American Academy of Pediatrics: “As children become more digitally connected, it becomes even more important for parents, pediatricians and others who care for young children to understand how digital media impacts their health and development. Since digital technology evolves rapidly, so must our understanding of how data companies are engaging with children’s information online. As we pursue the promise of digital media for children’s development, we must design robust protections to keep them safe based on an up-to-date understanding of the digital spaces they navigate.” The following can be attributed to Josh Golin, Executive Director of Campaign for Commercial-Free Childhood: As kids are spending more time than ever on digital devices, we need the full power of the law to protect them from predatory data collection -- but we can't protect children from Big Tech business models if we don't know how those models truly work. The FTC must use its full authority to investigate opaque data and marketing practices before making any changes to COPPA. We need-to-know what Big Tech knows about our kids." The following can be attributed to Katharina Kopp, Director of Policy, Center for Digital Democracy (CDD): “Children are being subjected to a purposefully opaque ‘Big Data’ digital marketing system that continually gathers their information when they are online. The FTC must use its authority to understand how new and evolving advertising practices targeting kids really work, and whether these data practices are having a discriminatory, or other harmful impact, on their lives.” The following can be attributed to James P. Steyer, CEO and Founder of Common Sense: "Kids and families have to be the priority in any changes to COPPA and in order to do that, we must fully understand what the industry is and isn’t doing when it comes to tracking and targeting kids. Tech companies are never going to be transparent about their business practices which is why it is critical that the FTC use its authority to look behind the curtain and shed light on what they are doing when it comes to kids so that if any new rules are needed, they can be smart and well-informed." The following can be attributed to Katie McInnis, Policy Counsel, Consumer Reports: "We’re glad the FTC is asking for comments on the implementation of COPPA through the 2013 COPPA rule. But the Commission should have the fullest possible picture of how children's personal information is being collected and used before it considers any changes. It’s well-documented that compliance with COPPA is uneven among apps, connected toys, and online services. The FTC must fully understand how kids’ personal information is treated before the 2013 rule can be modified, in order to ensure that children and their data are protected.” The following can be attributed to Marc Rotenberg, President, Electronic Privacy Information Center (EPIC): “The FTC should complete its homework before it proposes changes to the regulations that safeguard children’s privacy. Without a clear understanding of current industry practices, the agency’s proposal will be ill-informed and counterproductive." The following can be attributed to Lindsey Barrett, Staff Attorney and Teaching Fellow, Institute for Public Representation, Georgetown Law: The FTC should conduct 6(b) studies to shed light on the complex and evolving profiling practices that violate children’s privacy. Children are being monitored, quantified, and analyzed more than ever before, and the Commission cannot make informed decisions about the rules that protect them online based on limited or skewed information about the online ecosystem. The following can be attributed to Robert Weissman, President, Public Citizen: “The online corporate predators are miles ahead of the FTC, employing surveillance and targeting tactics against children that flout the protections enshrined in COPPA. The first thing the FTC should do is invoke its investigative powers to get a firm grasp on how Big Tech is systematically invading children’s privacy.” The following can be attributed to Cheryl A. Leanza, Policy Advisor, UCC OC Inc.: “In the modern era, our data are our lives and our children’s lives are monitored and tracked in more detail than any previous generation to unknown effect. Parents seek to pass on their own values and priorities to their children, but feel subverted at every turn by unknown algorithms and marketing efforts directed to their children. At a minimum, the FTC must collect basic facts and trends about children and their data privacy.” The following can be attributed to Eric Rodriguez, Senior Vice President, UnidosUS: “All children should have the right to privacy and live free from discrimination, including in digital spaces. Latino children are targeted by digital marketing efforts and with real consequences to their health and wellbeing. UnidosUS urges the Commission to use its authority and study how children of color operate in the digital space, what happens to their personal data, and how well they are protected by COPPA. Only then can the Commission take effective and objective action to strengthen COPPA to protect an increasingly diverse youth population.”

In the aftermath of Google’s settlement with the FTC over its COPPA violations, some independent content producers on YouTube have expressed unhappiness with the decision. They are unclear how to comply with COPPA, and believe their revenue will diminish considerably. Some also worry that Google’s recently announced (link is external) system to meet the FTC settlement—where producers must identify if their content is child-directed—will affect their overall ability to “monetize” their productions even if they aren’t aiming to primarily serve a child audience. These YouTubers have focused their frustration at the FTC and have mobilized to file comments in the current COPPA proceedings (link is external). As Google has rolled out its new requirements, it has abetted a misdirected focus on the FTC and created much confusion and panic among YouTube content producers. Ultimately, their campaign, designed to weaken the lone federal law protecting children’s privacy online, could create even more violations of children’s privacy. While we sympathize with many of the YouTubers’ concerns, we believe their anger and sole focus on the FTC is misplaced. It is Google that is at fault here, and it needs finally to own up and step up. The truth is, it is Google’s YouTube that has violated the 2013 COPPA rule (link is external) pretty much since its inception. The updated rule made it illegal to collect persistent identifiers from children under 13 without parental consent. Google did so while purposefully developing YouTube as the leading site for children. It encouraged content creators to go all in and to be complicit in the fiction that YouTube is only for those whose age is 13 and above. Even though Google knew that this new business model was a violation of the law, it benefitted financially by serving personalized ads to children (and especially by creating the leading online destination for children in the U.S. and worldwide). All the while small, independent YouTube content creators built their livelihood on this illegitimate revenue stream. The corporate content brand channels of Hasbro, Mattel and the like, who do not rely on YT revenue, as well as corporate advertisers, also benefitted handsomely from this arrangement, allowing them to market to children unencumbered by COPPA regulations. But let’s review further how Google is handling the post-settlement world. Google chose to structure its solution to its own COPPA violation in a way that continues to place the burden and consequences of COPPA compliance on independent content creators. Rather than acknowledging wrong-doing and culpability in the plight of content creators who built their livelihoods on the sham that Google had created, Google produced an instructional video (link is external) for content creators that emphasizes the consequences of non-compliance and the potential negative impact on the creators’ monetization ability. It also appeared to have scared those who do not create “for kids” content. Google requires content creators to self-identify their content as “for kids,” and it will use automated algorithms to detect and flag “for kids” content. Google appears to have provided little useful information to content providers on how to comply, and confusion now seems rampant. Some YouTubers also fear (link is external) that the automated flagging of content is a blunt instrument “based on oblique overly broad criteria.” Also, Google declared that content designated as “for kids” will no longer serve personalized ads. The settlement and Google’s implementation are designed to assume the least risk for Google, while maximizing its monetary benefits. Google will start limiting the data it collects on made “for kids” content – something they should have done a long time ago, obviously. As a result, Google said it will no longer show personalized ads. However, the incentives for content creators to self-identify as “for kids” are not great, given that disabling (link is external) behavioral ads “may significantly reduce your channel’s revenue.” Although Google declares that it is “committed to help you with this transition,” it has shown no willingness to reduce its own significant cut of the ad revenue when it comes to children’s content. While incentives for child-directed content creators are high to mis-label their content, and equally high for Google to encourage them in this subterfuge, the consequences for non-compliance now squarely rest with content creators alone. Let’s be clear here. Google should comply with COPPA as soon as possible where content is clearly child- directed. Google has already developed a robust set of safeguards and policies (link is external) on YouTube Kids to protect children from advertising (link is external) for harmful products and from exploitative influencer marketing. It should apply the same protections on all child-directed content, regardless of which YouTube platform kids are using. When CCFC and CDD filed our COPPA complaint in 2018, we focused on how Google was shirking its responsibilities under the law by denying that portions of YouTube were child-directed (and thus governed by COPPA). The channels we cited in our complaint were not gray-area channels that might be child attractive but also draw lots of teen and adult viewers. Our complaint discussed such channels as Little Baby Bum, ChuChu TV Nursery Rhymes and Kids Songs, and Ryan’s Toy Reviews. We did not ask the FTC to investigate or sanction any channel owners, because Google makes the rules on YouTube, particularly with regard to personal data collection and use, and therefore it was the party that chose to violate COPPA. (Many independent content creators concur indirectly when they say that they should not be held accountable under COPPA. They maintain that they actually don’t have access to detailed audience data and do not know if their YouTube audience is under 13 at all. Google structures what data they have access to.) For other content, in the so-called “gray zone,” such as content for general audiences that children under 13 also watch, or content that cannot be easily classified, we need more information about Google’s internal data practices. Do content creators have detailed access to demographic audience data and are thus accountable, or does Google hold on to that data? Should accountability for COPPA compliance be shifted more appropriately to Google? Can advertising restrictions be applied at the user level once a user is identified as likely to be under thirteen regardless of what content they watch? We need Google to open up its internal processes, and we are asking the FTC to develop rules that share accountability appropriately between Google and its content creators. The Google settlement has been a significant victory for children and their parents. For the first time, Google has been forced to take COPPA seriously, a U.S. law that was passed by Congress to express the will of the majority of the electorate. Of course, the FTC is also complicit in this problem as it waited six years to enforce the updated law. They watched Google’s COPPA violations increase over time, allowing a monster to grow. What’s worse, the quality of the kids YouTube content was to most, particularly to parents, more than questionable (link is external), and at times even placed children seriously at risk (link is external). What parents saw in the offering for their children was quantity rather than quality content. Now, however, after six years, the FTC is finally requiring Google and creators to abide by the law. Just like that. Still, this change should not come as a complete surprise to content creators. We sympathize with the independent YT creators and understand their frustration, but they have been complicit in this arrangement as well. The children’s digital entertainment industry has discussed compliance with COPPA for years behind closed doors, and many knew that YouTube was in non-compliance with COPPA. The FTC has failed to address the misinformation that Google is propagating among content creators, its recent guidance (link is external) not withstanding. Moreover, the FTC has allowed Google to settle its COPPA violation by developing a solution that allows Google to abdicate any responsibility with COPPA compliance, while continuing to maximize revenue. It’s time for the FTC to study Google’s data practices and capabilities better, and squarely put the onus on Google to comply with COPPA. As the result of the current COPPA proceedings, rules must be put in place to hold platforms, like YouTube, accountable.

Most parents can tell you the most popular website for kids is YouTube. But for years, while Google made millions luring children to YouTube, vacuuming up their sensitive information, and using it to target them with ads, Google told the Big Lie: “YouTube is not for kids. It says so right in our terms of service.” That has now changed, thanks to the advocacy of Campaign for a Commercial-Free Childhood (CCFC) and the Center for Digital Democracy (CDD) and the support of a coalition of advocacy groups. Google deliberately developed YouTube as the leading site for children with programming and marketing strategies designed to appeal directly to kids. But it ignored the only federal law addressing commercial privacy online—the Children’s Online Privacy Protection Act (COPPA). Their behavior sent a message that a corporation as powerful and well-connected corporation as Google is above the law—even laws designed to protect young people. CCFC, CDD, and our attorneys at the Institute for Public Representation (link is external) (IPR) at Georgetown University Law Center, with a broad coalition of consumer, privacy, public health and child rights groups, began filing complaints at the Federal Trade Commission (FTC) in 2015 concerning Google’s child-directed practices on YouTube and the YouTube Kids app. We kept up the pressure on the FTC, with the help of Congress and the news media. After we filed a complaint (link is external) in April 2018 describing YouTube’s ongoing violations of COPPA, the FTC, under the leadership of Chairman Joe Simons, finally decided to take action. The result was the FTC’s September decision (link is external)—which in many ways is both historic and a major step in the direction of protecting children online. Google was fined $170 million for its violations of children’s privacy, a record amount for a COPPA-connected financial sanction. The FTC’s action also implemented important new policies (link is external) protecting children, most of which will go into effect by January 2020: Children will no longer be targeted with data-driven marketing and advertising on YouTube programming targeted to kids: This is the most important safeguard. Google will no longer conduct personalized “behavioral” marketing on YouTube programming that targets children. In other words, they will stop the insidious practice of using kids’ sensitive information in order to target them with ads tailored for their eyes. Google will require video producers and distributors to self-identify that their content is aimed at kids; and will also employ its own technology to identify videos that target young audiences. Google will substantially curtail the data they collect from children watching YouTube videos. Since the main YouTube site has no age gate, they will limit data collection and tracking of viewers’ identities for anyone watching child-directed content there to only the data “needed to support the operation of the service.”. The same limitation will apply to videos on YouTube Kids. Google is taking steps to drive kids from the main YouTube site to YouTube Kids, where parental consent is required. Google launched the YouTube Kids app in 2015. But the app never rivaled the main YouTube platform’s hold on children, and was plagued with a number of problems, such as inadequate screening of harmful content. As a result of the FTC investigation, Google has launched a YouTube Kids website, and when kids watch children’s content on the main YouTube site they get a pop-up suggesting they visit YouTube Kids. Google says it will more effectively curate different programming that will appeal to kids aged 4 through 12. This is a positive development because, while a number of concerns remain about YouTube Kids, children are better off using the Kids site rather than the Wild West of the main YouTube platform. Google created a $100 million fund for “quality kids, family and educational content.” CCFC and CDD had proposed this, and we are gratified Google acknowledged it bears responsibility to support programing that enriches the lives of children. This is to be a three-year program to spur “the creation of thoughtful, original children’s content.” Google has made changes to make YouTube a “safer platform for children:” The company is proactively promoting “quality” children’s programming on YouTube by revising the algorithm used to make recommendations. It is also not permitting comments and notifications on child-directed content. Google has told CCFC and CDD it will make these changes regarding data collection and targeted marketing worldwide. Other questions remain to be answered. How will it treat programming classified as “family viewing”—exempt it from the new data targeting safeguards? (It should not be permitted to do so.) Will the new $100 million production fund commit to supporting child-directed non-commercial content (instead of serving as a venture for Google to expand its marketing to kids)? Will Google ensure that its other child-directed commercial activities—such as its Play Store—also reflect the new safeguards the company has adopted for YouTube? Google also permits the targeting of young people via “influencers,” including videos where toys and other products are unboxed. When such videos are child-directed, Google should put an end to them. CCFC, CDD and our allies intend to play a proactive role holding Google, its programmers, advertisers and the FTC accountable to make sure that these new policies are implemented effectively. Our work in bringing about this change and the work we will do to make other companies follow suit is part of our commitment to ensuring that young people around the world grow up in a media environment that respects and promotes their health, privacy, and well-being.

Contact: David Monahan, CCFC (david@commercialfreechildhood.org (link sends e-mail); 617-896-9397) Jeff Chester, CDD (jeff@democraticmedia.org (link sends e-mail); 202-494-7100) Will the FTC Weaken Children’s Privacy Rules? Invited Advocates Raise Concerns About Upcoming COPPA Workshop, Plans to Undermine Federal Protections for Kids October 7 D.C. lineup dominated by tech industry supporters WHAT: The Future of the Children’s Online Privacy Protection Act Rule (COPPA): An FTC Workshop (link is external) WHEN: October 7, 2019, 9:00 am ET WHERE: Constitution Center, 400 7th St SW, Washington, DC WORKSHOP PRESENTERS FOR CAMPAIGN FOR A COMMERCIAL-FREE CHILDHOOD (CCFC) AND CENTER FOR DIGITAL DEMOCRACY (CDD): THE CHALLENGE: In 2012, the FTC approved new safeguards to protect children’s privacy in the digital era, heeding the advice of child advocates, consumer groups, privacy experts and health professionals. But now the Commission has called for comments (link is external) on COPPA three years before a new review is mandated by statute. The questions posed by the Commission, as well as public comments made by FTC staff, make privacy advocates wary that the FTC’s goal is to roll back COPPA safeguards rather than strengthen protections for children. Concerns about the FTC creating new loopholes or supporting industry calls to weaken the rules are heightened by the FTC’s speaker list for this workshop, replete with tech and marketing companies and their lawyers and lobbyists, with just a few privacy and children’s advocates at the table. The advocates are also concerned that the FTC is contemplating this action just weeks after its most significant COPPA enforcement action to date—requiring major changes to Google’s data collection practices on YouTube—a move that could result in rules being changed before those new practices have even been implemented. Children and families need increased COPPA enforcement, not weaker rules. The key problems, the advocates note, are the lack of enforcement of the law by the FTC; the failure of the agency to protect children from unfair marketing practices, such as influencers; and the need to maintain the strongest possible safeguards—whether in the home, school or on mobile devices. Speakers at the workshop include: Josh Golin, Executive Director, CCFC Will participate in a panel entitled Scope of the COPPA Rule. Katharina Kopp, Ph.D., Deputy Director, Director of Policy, CDD Will participate in a panel entitled Uses and Misuses of Persistent Identifiers. Laura M. Moy, Associate Professor of Law, Director, Communications & Technology Law Clinic, Georgetown University Law Center Will participate in a panel entitled State of the World in Children’s Privacy. Josh, Katharina, and Laura are available for questions in advance of the workshop, and will also be available to speak with press on site. See video of Future of COPPA Workshop here: https://www.ftc.gov/news-events/audio-video/video/future-coppa-rule-ftc-... (link is external) https://www.ftc.gov/news-events/audio-video/video/future-coppa-rule-ftc-... (link is external) ###

Press Statement Google YouTube FTC COPPA Settlement Statement of Katharina Kopp, Ph.D. Deputy Director Center for Digital Democracy August 30, 2019 It has been reported that Google has agreed to pay between $150 million and $200 million to resolve an FTC investigation into YouTube over alleged violations of a children's privacy law. A settlement amount of $150-200 million would be woefully low, considering the egregious nature of the violation, how much Google profited from violating the law, and given Google’s size and revenue. Google’s unprecedented violation requires an unprecedented FTC response. A small amount like this would effectively reward Google for engaging in massive and illegal data collection without any regard to children’s safety. In addition to assessing substantial civil penalties, the FTC must enjoin Google from committing further violations of COPPA and impose effective means for monitoring compliance; the FTC must impose a 20-year consent decree to ensure Alphabet Inc. acts responsibly when it comes to serving children and parents. ------ In April, 2018, the Center for Digital Democracy (CDD) and the Campaign for Commercial-Free Childhood (CCFC), through their attorneys at Georgetown Law’s Institute for Public Representation (IPR), filed an FTC complaint (link is external) detailing YouTube’s COPPA violations. Twenty-one other privacy and consumer groups signed on to CCFC and CDD’s complaint, which detailed how Google profits by collecting personal information from kids on YouTube, without first providing direct notice to parents and obtaining their consent as required by law. Google uses this information to target advertisements to children across the internet and across devices, in clear violation of COPPA.