Facebook Inc. (FB): New COPPA Rules May Provide Ad Loophole

Page 1 of 2

Facebook Inc. (NASDAQ:FB) has been actively pursuing some clarification of rules surrounding the federal Children’s Online Privacy Protection Act (COPPA) that was passed in 2000. The Federal Trade Commission has followed through on Facebook’s request, recently sending some specific guidelines and some changes to the rules in the Act – and these changes and clarifications may actually help Facebook reach out to young users under the age of 13.

Yes, the same Facebook Inc. (NASDAQ:FB) that officialy bans underage children from accessing the site – though many young’uns  get on the site through their parents.

Facebook Inc. (FB)

It is reported recently that the FTC has announced some “updates” to COPPA to bring the law up to date with the highly evolved Internet compared to the Web in 2000. There were several changes announced Wednesday morning, and perhaps one in particular may open the door for sites like Facebook Inc. (NASDAQ:FB) to be able to advertise to young users – thanks to a clarification that Facebook itself reportedly lobbied to receive. The most noteworthy rule change under COPPA is that parental consent will not be required as long as a web site (like Facbook) uses user data of children “for the sole purpose of supporting the website or online service’s internal operations, such as contextual advertising, frequency capping, legal compliance, site analysis, and network communications” (emphasis mine).

The concept of contextual advertising means that web sites like Facebook Inc. (NASDAQ:FB) can allow users under age 13 without parental consent as long as the sites provide advertising that is relevant to the content on a given page. Behavioral advertising – which is based on user data and browsing behavior and preferences – is still expressly forbidden without parental approval.

Among other changes in the law that keep up with modern Internet technology (including mobile devices, which were not conceived in 2000) are the following points (continue to next page).

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!