A WSJ article reports that social networks and Internet advertisers are likely to face new restrictions from the FTC on how they interact with children online. New rules are expected to close loopholes in the 1998 Children's Online Privacy
Protection Act that currently allow companies to find ways to gather
information about kids. The loopholes exist since the law has not adapted to advances in Web technology and
marketing. For example, some iPhone games popular with
kids, include the option to join social networks that collect personal
data from users without asking for a parent's permission.
Facebook is arguing
that software such as its "Like" button should be exempt since data gathered by such software isn't used to target ads based on users'
behavior. They believe this type of software can help facilitate
the development of innovative, engaging online content for teens. But where should the line be drawn and how can it be effectively regulated to make sure child information is not getting exploited to advertisers?
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