Consumer Payment Card News

COPPA Compliance

Starting this week, new rules go into effect in the U.S. that affect kids and the Internet. As a result, some companies may require a parent’s credit card to permit children to participate in online activities. The Children’s Online Privacy Protection Act (COPPA) officially took effect April 21. The COPPA regulation stipulates that Web sites must post their privacy policy; get verifiable parental consent before collecting, using or disclosing personal information about a child; get new consent when information practices change in a material way; allow parents to review personal information collected from their children; and allow parents to revoke their consent and delete information. One of the hottest Web sites for children is, the Internet business of The Walt Disney Co., announced this week it will require parents to provide credit card authorization in order for their children to participate in any activities that involve external communications, such as message board posting, open chats and holding an e-mail account. The requirement will be practiced across the family of Web sites, including,,, and For more information visit

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