On August 19, the FTC
filed an
amicus brief supporting a class of plaintiffs representing their minor children in a case alleging that an educational technology company unlawfully collected, used and sold the children’s data in violation of COPPA. In the class action litigation, the educational technology company moved to compel arbitration based on its agreement with school districts, arguing that, under COPPA, the school district acts as agents for the parents and thus the district’s agreement is binding on the parents.
The FTC’s amicus brief disputed the company’s conclusion, arguing instead that COPPA does not address whether parents and children were bound by arbitration agreements when school districts agree to terms of service for classroom software. The FTC emphasized that COPPA’s provisions are limited to parental notice and consent requirements and do not extend to contractual obligations.
The FTC clarified in its brief that its guidance on schools’ roles under COPPA is limited to the notice and consent process and made clear that the commission’s commentary relied on by the company does not create an agency relationship between parents and school districts beyond the context of this the notice and consent. The FTC argued that the educational technology company’s reliance on COPPA (to justify binding parents and children to arbitration agreements) is unfounded in the rule implementing COPPA or FTC commentaries on the rule. Through its submission, the FTC, as the agency primarily tasked with enforcing COPPA, aimed to provide the court with its interpretation of COPPA thus emphasizing that the statute and its implementing rule do not support compelling arbitration of the parents’ claims in this case. The agency’s involvement also aims to underscore its commitment to protecting children’s online privacy and ensuring that companies adhere to COPPA’s requirements.
