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1 1 (January 8, 2018)

handle is hein.crs/govcjuq0001 and id is 1 raw text is: Resarh Service Smart Toys and the Children's Online Privacy Protection Act of 1998 January 8, 2018 A growing number of devices in Arnerican households, including televisions, appliances, security systems, and heating and cooling devices, rely on Internet connectivity to perform a range of functions. And the Internet of Thin gs includes a growing number of products primarily used by children, including smart toys. In the 1980's, the popular Teddy Ruxpin bear talked to children by way of a tape player hidden inside. Today, children may have real-time two-way conversations with their smart toys. Sensors, mics, cameras, storage devices, speech recognition technology, Internet-connectivity, and GPS are used to tailor the toy's behaviors based on the child's interactions. Some more sophisticated smart toys may record a child's voice on an audio file, convert the audio to text, query a searchable database, and return an appropriate voice response back to the child. But smart toys' use of Internet-connectivity potentially to collect children's personal information may require the toys' makers to take certain steps to comply with the Children's Online Privacy Protection Act of 1998 (COPPA) and its implementing rules and requirements. Security researchers have found that unsecured Bluetooth-enabled toys may be vulnerable to hacking, allowing third-parties to surreptitiously communicate with a child through the Internet- connected toy. Concern over potential misuse of such toys prompted Germany to ban certain smart toys. In the United States, at least one legal complaint has been filed with the Federal Trade Commission (FTC) alleging that certain smart toy makers unfairly and deceptively collect, use, and disclose audio files of children's voices, without providing adequate notice or obtaining verified parental consent. Such practices are alleged to violate COPPA and its implementing regulations, along wi th Section 5 of the Federal Trade Commission Act. Entities that violate COPPA and the FTC Act potentially could, among other things, be enjoined from continuing their unlawful conduct and face civil monetary penalties. Congressional Research Service https://crsreports.congress.gov LSB10051 CRS NStGHT Prepaimed for Mernbei-s and Committees o. ' C- --q .. . . . . . . . ...----------------------------------------------------------------------------------------------------------------------------------------------------------------------

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