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

* Parents much give approval for a mobile app to collect children’s location, photos, videos or other identifying data – including IP addresses and mobile device identifiers.

* A loophole will be closed that had previously allowed third parties to collect data through web site plug-ins and mobile apps. In some cases now, those third parties will have to abide by all parts of COPPA as if they were web sites that are accessed by children directly. However, the new rules don’t prohibit web sites from releasing children’s data to other parties, but the web sites were directed to take “reasonable steps” to ensure that the information was being shared with third parties that are trusted to keep such information secure and private.

While Facebook Inc. (NASDAQ:FB) has taken steps to eliminate underage profiles on its site, do these updated and clarified rules give Facebook an opportunity to improve is advertising success among a younger demographic? What do you think about children’s privacy and how web sites approach this? Can and will Facebook Inc. (NASDAQ:FB)  take advantage of the opportunity, or pass on it? How do you think investors in Facebook, like billionaire Paul Tudor Jones of Tudor Investment Corporation?