Harm or Deterrence?: FTC Civil Penalty Assessments Under COPPA

The Federal Trade Commission announced its most recent settlement action under the Children’s Online Privacy Protection Act (COPPA) on June 4. The settlement included a $4 million penalty (suspended to $150,000 due to the defendant’s proven inability to pay) against Hyperbeard, Inc. for alleged violations of COPPA. More interesting than the terms of the settlement itself, was the debate demonstrated in public statements from Chairman Joseph J. Simons and Commissioner Noah Joshua Phillips expressing differing opinions on the ultimate goal and purpose of FTC civil penalties for violations of COPPA.

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