Are websites operated by nonprofit entities subject to the Rule?
COPPA and the Rule expressly state that they apply to commercial websites and not to nonprofit entities that would otherwise be exempt from coverage under Section 5 of the FTC Act. In general, therefore, most nonprofit entities are not subject to the Rule. However, nonprofit entities that operate for the profit of their commercial members may be subject to the Rule. See FTC v. California Dental Association, 526 U.S. 756 (1999). Although nonprofit entities generally are not subject to COPPA and the Rule, the FTC encourages them to post privacy policies on their websites and provide COPPA protections to their child visitors.
