COPPA
U.S. regulation mandating parental consent for children's online data
Basel III
Global framework for bank capital, leverage, and liquidity resilience
Quick Verdict
COPPA protects children's online privacy via parental consent for US websites, while Basel III mandates capital/liquidity standards for banks worldwide. Tech firms adopt COPPA to avoid FTC fines; banks implement Basel III for solvency and regulatory compliance.
COPPA
Children's Online Privacy Protection Act (COPPA)
Key Features
- Mandates verifiable parental consent before collecting children's data
- Targets child-directed commercial websites, apps, and IoT devices
- Expansive personal information including geolocation and device IDs
- Grants parents data access, review, and deletion rights
- FTC enforcement with $43,792 per violation civil penalties
Basel III
Basel III: Finalising post-crisis reforms
Key Features
- Strengthened CET1 capital (4.5%) and conservation buffer (2.5%)
- Non-risk-based leverage ratio minimum (3%)
- Liquidity Coverage Ratio for 30-day stress survival
- Net Stable Funding Ratio for one-year resilience
- Enhanced Pillar 3 disclosures for RWA comparability
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
COPPA Details
What It Is
The Children's Online Privacy Protection Act (COPPA), enacted in 1998 and effective April 21, 2000, is a U.S. federal regulation enforced by the FTC. It protects children under 13 from unauthorized online personal data collection by commercial operators of websites, apps, and IoT devices directed to kids or with actual knowledge of their users. Its risk-based approach centers on verifiable parental consent before data handling.
Key Components
- **Verifiable Parental Consent (VPC)11+ methods (e.g., credit card, video call) on a sliding scale.
- Broad **personal informationNames, persistent IDs, street-level geolocation, child audio/video.
- Obligations: Privacy notices, data security, minimization, parental access/review/deletion.
- Safe harbors like ESRB for self-regulation.
Why Organizations Use It
Mandatory compliance avoids FTC fines up to $43,792 per violation (e.g., YouTube's $170M). Builds parental trust, reduces risks, enables global child services ethically, and meets legal duties for U.S.-targeted operators.
Implementation Overview
Analyze child-direction, deploy age gates/VPC, secure data, post policies. Applies to commercial entities worldwide; SMBs use low-cost tools. No certification, but FTC-audited safe harbors; typically 6-12 months.
Basel III Details
What It Is
Basel III is the post-crisis global regulatory framework by the Basel Committee on Banking Supervision (BCBS). This prudential standard strengthens bank resilience through higher-quality capital, leverage constraints, liquidity buffers, and enhanced supervision. It uses a risk-based approach augmented by simple, comparable non-risk-based metrics like leverage and liquidity ratios.
Key Components
- **Pillar 1Capital ratios (CET1 ≥4.5%, Tier 1 ≥6%, Total ≥8%), buffers (conservation 2.5%, countercyclical, G-SIB/D-SIB), leverage ratio (≥3%), LCR, NSFR.
- **Pillar 2Supervisory review via ICAAP and stress testing.
- **Pillar 3Granular disclosures for RWA comparability and distribution constraints. No fixed controls; compliance through national laws and output floors.
Why Organizations Use It
Mandatory for internationally active banks to meet legal requirements, reduce systemic risks, constrain leverage, and ensure liquidity. Benefits include usable buffers, better risk comparability, strategic asset allocation, and stakeholder trust via transparent disclosures.
Implementation Overview
Phased enterprise transformation: governance setup, data architecture, model revisions, reporting systems. Applies to large banks globally; involves supervisory assessments, no central certification.
Key Differences
| Aspect | COPPA | Basel III |
|---|---|---|
| Scope | Child privacy online data collection under 13 | Bank capital, leverage, liquidity standards |
| Industry | Online services, apps, ad networks (global US kids) | Internationally active banks (global jurisdictions) |
| Nature | Mandatory US FTC regulation | Global prudential standards, nationally implemented |
| Testing | Parental consent verification, compliance audits | Stress testing, ICAAP, Pillar 3 disclosures |
| Penalties | $43k per violation, $170M fines | Supervisory actions, capital add-ons, enforcement |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about COPPA and Basel III
COPPA FAQ
Basel III FAQ
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