Center for Digital Democracy v. Federal Trade Commission

189 F. Supp. 3d 151, 2016 U.S. Dist. LEXIS 71099, 2016 WL 3093369
CourtDistrict Court, District of Columbia
DecidedJune 1, 2016
DocketCivil Action No. 2014-2084
StatusPublished
Cited by7 cases

This text of 189 F. Supp. 3d 151 (Center for Digital Democracy v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Center for Digital Democracy v. Federal Trade Commission, 189 F. Supp. 3d 151, 2016 U.S. Dist. LEXIS 71099, 2016 WL 3093369 (D.D.C. 2016).

Opinion

MEMORANDUM OPINION

Amit P. Mehta, United States District • Judge

I. INTRODUCTION

Under the Children’s Online Privacy Protection Act of 1998, Congress tasked the Federal Trade Commission (“FTC”) with issuing and enforcing regulations designed to protect the online privacy and safety of children. To carry out its statutory mandate, the FTC issued what is known as the Children’s Online Privacy Protection Rule, or the “COPPA Rule.” The COPPA Rule imposes upon both online services and individual websites directed at children requirements concerning the collection, use, and disclosure of personal information regarding children under the age of 13. Although the FTC crafted thé COPPA Rule, under the. Privacy Protection Act’s regulatory scheme, the Rule itself is primarily enforced not by the FTC but by private entities known as “safe harbor programs.” These safe harbor programs, which the FTC must review and approve, design their own rules — which must be at least as robust as the COPPA Rule — and then work to ensure that the program’s subscribers (online services and websites directed at children, who pay the program a fee) comply with those rules.

In 2014, the FTC began requiring safe harbor programs to submit annual reports to the agency. The reports, generally speaking, are required to contain information concerning each safe harbor program’s monitoring and enforcement of their members. However, due to a lack of clarity in the FTC’s rules regarding what the reports must include, the 2014 reports varied dramatically in terms of the information and data provided.

Plaintiff Center for Digital Democracy brought this suit against the FTC under the Freedom of Information Act (“FOIA”) to obtain access to the first round of annual reports. The FTC disclosed the annual reports to Plaintiff, but in redacted form. According to the FTC, the redactions were necessary to protect the programs’ trade secrets or non-public commercial or financial information. The dispute in this case *154 centers on whether the FTC redacted the reports consistent with FOIA.

Before the court is Defendant’s Motion for Summary Judgment and Plaintiffs Cross-Motion for Summary Judgment. Upon consideration of the parties’ submissions and the record, the court grants Defendant FTC’s Motion for Summary Judgment and denies Plaintiffs Cross-Motion for Summary Judgment.

II. BACKGROUND

A. Factual Background

1. COPPA and FTC Enforcement

In 1998, Congress enacted the Children’s Online Privacy Protection Act (“COPPA”), 15 U.S.C. §§ 6501-6506, in order to protect children under 13 years of age who use the Internet. The statute imposed certain requirements on operators of websites and online services directed at young children, and instructed the FTC to issue and enforce regulations implementing the statute. 15 U.S.C. § 6502(b); Def.’s Statement of Material Facts, ECF No. 6 [hereinafter Def.’s Facts], ¶ 1. To carry out Congress’ directive, the FTC issued the COPPA Rule, which applies to “any operator of a Web site or online service directed to children, or any operator that has actual knowledge that it is collecting or maintaining personal information from a child.” 16 C.F.R. § 312.3. The COPPA Rule requires, among other things, that such websites and online services provide specific notice about the personal information they collect from children, how they use it, and their practices for disclosing it; obtain parental consent before collecting, using, or disclosing personal information from children; and establish procedures to protect the confidentiality and security of personal information collected from children. 16 C.F.R. §§ 312.3, 312.4-312.8. The FTC may bring enforcement actions against persons or operators who fail to comply with the COPPA Rule. See 15 U.S.C. §§ 6502(c), 6505(a) & (d).

2. Safe Harbor Programs

Although Congress left it to the FTC to develop rules to implement COPPA, in a rather unique regulatory scheme, it largely left the enforcement of those rules to private industry. The COPPA statute provides that operators of websites and online services directed at young children can comply with the statute “by following a set of self-regulatory guidelines, issued by representatives of the marketing or online industries or by other persons.” 15 U.S.C. § 6503(a); see also 16 C.F.R. § 312.11(g). Issuers of these guidelines are known as “safe harbor programs.” 16 C.F.R. § 312.11.

Congress adopted this “self-regulation” model to “develop[ ] an industry consensus on the appropriate level of protection to accord children’s privacy on commercial Internet sites” and to “encourage development and implementation of meaningful, effective self-regulatory activities and to provide basis for their wide-spread adoption.” S. 2326, Children’s Online Privacy Protection Act of 1998: Hearing Before the S. Subcomm. on Communications of the S. Comm, On Commerce, Science, and Transportation, 105th Cong. 11 (1998) (statement of Robert Pitofsky, Chairman, FTC). By allowing enforcement through safe harbor programs instead of through direct federal agency oversight, “Congress intended to ... promot[e] efficiency and flexibility in complying with COPPA’s substantive provisions.” Children’s Online Privacy Protection Rule, Final Rule Amendments, 78 Fed. Reg. 3,995-3,996 (Jan, 17, 2013). The FTC similarly has explained that the safe harbor program was meant to serve as an “incentive for industry self-regulation; by allowing flexibility in the development of self-regulatory guidelines, it ensures that the protections afforded *155 children under this Rule are implemented in a manner that takes into account industry-specific concerns and technological developments,” Children’s Online Privacy Protection Rule, 1999 Statement of Basis and Purpose, 64 Fed. Reg. 59,906 (Nov. 3, 1999).

Safe harbor programs must be approved by the FTC. The FTC will approve a safe harbor program only after a public notice and comment period and upon a finding that the safe harbor program’s self-regulatory guidelines “meet the requirements” of the COPPA Rule. 15 U.S.C. § 6503(b)(2).

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Bluebook (online)
189 F. Supp. 3d 151, 2016 U.S. Dist. LEXIS 71099, 2016 WL 3093369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/center-for-digital-democracy-v-federal-trade-commission-dcd-2016.