New Rules on Kids' Web Ads

Social networks and Internet advertisers are likely to face new restrictions on how they interact with children online. The Federal Trade Commission is expected to announce August 1 new rules that close loopholes that currently allow companies to gather information despite a 1998 law that was supposed to protect kids' online footprint.

The rules could affect popular features such as Facebook "Like" button, as well as new social networks for playing games on smartphones. Websites aimed at children already have to get parental consent before gathering information—such as name and email address—from users under 13 years old. But the original law, known as the Children's Online Privacy Protection Act, hasn't adapted to advances in Web technology and marketing. Those advances have allowed so-called third parties to gather data without parents' knowing. For example, some iPhone games popular with kids, include the option to join social networks that collect personal data from users without asking for a parent's permission.