A new update to the Children’s Online Privacy Protection Act (COPPA) requires kids’ app makers to get parents’ permission before collecting even the most basic data, with penalties for violations running up to $16,000 per violation. The rule change goes into effect today, July 1.

Many developers supply apps for free and use data to attract advertisers, without strictly policing whether or not kids are using the apps. An investigation by the Wall Street Journal into popular apps used by kids found that many of them are still collecting data from children directly or via third parties including ad networks or analytics companies such as Flurry.

Developers will now need to either unplug these services or require permissions, such as having a parent authorize their child to join a social network or share data such as first and last name, street address and photographs. Privacy policies will also have to be clearly posted.

While protecting children is a noble goal, some observers worry that this new regulation might be used to hurt businesses by ‘opportunistic privacy groups and their lawyers,’ GigaOm noted.

Source: GigaOm