Lawyer warns companies over collecting children's data

A specialist data protection lawyer has warned companies of the increasing danger of collecting data from children.

Kirk Dailly, head of Corporate & Commercial at Blackadders and a certified data protection specialist, said that with the power of regulators to issue fines and investigate companies having increased, there were now “huge reputational and commercial consequences” for companies getting it wrong.

His warning comes as games companies, social media platforms and companies using facial recognition technology have all recently come under fire from data protection regulators across Europe for not doing enough to protect data gleaned from young people using their services.

In February, the UK regulator, the Information Commissioner’s Office, released new guidance on children’s data which was directed at games developers, aimed at ensuring compliance with the Children’s Code which has been developed to cover online services likely to be accessed by young people. The guidance includes ensuring that games are not detrimental to children’s wellbeing, including checkpoints and age-appropriate prompts, and turning off behavioural profiling for marketing to children.

Artificial intelligence is another emerging compliance issue for data protection, with suppliers having to verify the age of users and avoid harvesting personal data. Facial recognition technology in particular can fall foul of child protection measures built into data compliance.

Mr Dailly said: “Data is one of the most valuable commodities there is and its protection is now absolutely integral to businesses. Think about tech firms developing apps for banks or life sciences companies conducting clinical trials. Or video game developers deciding what data should be collected from children and how.

“The law in this area never used to have teeth but it increasingly does now.”

He added that with buyers and investors increasingly focusing on data protection issues as part of their due diligence, “Even if you think you’re getting away with it, there might be a sting in the tail when it comes to selling or receiving investment for your business, as any issues will be flushed out in the transaction process.”