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FTC CHALLENGES INDUSTRY ON CHILDREN'S PRIVACY

The Federal Trade Commission is increasing government scrutiny of child-oriented Web sites in an effort to stop deceptive online marketing programs targeted at children. In a replay of tactics that the FTC has used in the past year to transform online privacy into a major industry issue, the agency has begun offering "guidance" to youth-focused Web sites on what it considers acceptable practices in collecting profile information from kids online. It's the opening volley of a political match in which the FTC first will encourage industry self-regulation before threatening to impose government guidelines that could severely curtail the flexibility of online publishers in marketing to children online. "We'd like the industry to take the lead here," said Toby Levin, an attorney in the FTC's Bureau of Consumer Protection. "But we are monitoring sites and expect them to make progress on these issues." The agency earlier this summer targeted The KidsCom Co. for potentially deceptive practices used in collecting demographic information from children. The FTC warned KidsCom of potential problems with practices in which the site collected extensive data - including name, sex, birthday, e-mail address, home address, number of family members and grade - without disclosing intended uses of the information. The site has since resolved its issues with the FTC and is launching a program called Kidbe, in which sites can carry an on-screen icon that signifies compliance with basic guidelines on the collection and use of marketing information from kids. "If we don't do something, parents will have no sense of where their kids can go," said Lane Beauchamp, general manager at KidsCom. "We have to help parents feel more comfortable with their children's online experience." The FTC expects the industry to make additional strides in addressing children's issues long before the agency's next report to Congress on online issues, slated for June 1998. "It's not time for summer vacation on these issues," Levin said. "This is the time that some hard work has to be done." The FTC can be reached at www.ftc.gov The KidsCom Co. can be reached at www.kidscom.com -0- By Steven Vonder Haar Copyright (c) Ziff-Davis Publishing Company. All rights reserved. For additional Ziff-Davis online information, access Ziff-Davis on Compuserve (GO ZIFFNET) or ZD Net on the Internet (http://www.zd.com) * * * * * * * * * *

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