Virtual Piggybank System for COPPA-Compliant Child Spending Control
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Solution Overview
Problem
Current Internet payment systems lack effective mechanisms for parents to control and manage their children's online monetary transactions, particularly under the age of 13, as they are required to comply with the Children's Online Privacy Protection Act (COPPA), and existing parental controls do not adequately restrict the types of services children can sign up for or purchase online.
Innovation Solution
A virtual piggybank system that allows parents to establish an online account with specific control parameters, including a wish-list, where purchases are made using a direct deposit account and debit card, enabling parents to set spending limits and monitor their child's online activities, ensuring compliance with COPPA and providing control over online transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If parents provide children with credit cards or pre-paid cards for online purchases, then children can conduct monetary transactions on the Internet, but there is no control or limitation on what or how much the child can acquire
Solution Approach 1:
The patent introduces a third-party service provider that acts as an intermediary between the child and the online store. This service provider manages a virtual piggy bank account for the child, allowing purchases to be made while the parent maintains control through the service provider's platform. The intermediary handles the payment processing and enforcement of spending limits, resolving the contradiction between ease of purchase and parental control.
Solution Approach 2:
The system implements feedback mechanisms where the parent receives notifications about the child's purchases, spending remaining, and account status. This feedback loop allows the parent to monitor and control the child's spending in real-time, providing both ease of operation for the child and effective control for the parent through continuous information flow.
2Reliability
If websites restrict their sites to over 13's to avoid COPPA compliance, then website operators can avoid collecting children's personal information, but they forego a significant business opportunity in interacting with the under 13 market segment
Solution Approach 1:
The service provider acts as an intermediary that handles all data collection and processing for children under 13. The parent creates a profile with permission settings, and the service provider manages the interaction between the child and the website. This intermediary approach allows websites to serve under-13 users while maintaining COPPA compliance, as the service provider assumes responsibility for data protection and parental consent management.
Solution Approach 2:
The system requires preliminary parental setup and permission granting before any child can make purchases or provide information online. The parent must configure spending limits, approved websites, and notification preferences in advance. This preliminary action ensures COPPA compliance is built into the system architecture from the start, enabling websites to safely serve the under-13 market segment.
3Object-affected harmful factors
If parents use active control systems (firewalls, access controls) to prevent children from accessing unwanted information, then parents can control information availability, but there are no provisions to control the types of services children may sign up for or purchase
Solution Approach 1:
The service provider's platform provides multi-functional control capabilities within a single system. It handles information filtering, service approval, purchase authorization, spending limit enforcement, and transaction monitoring all through one unified interface. This universal approach allows parents to control both information access and service purchases without needing separate systems, directly addressing the limitation of traditional firewalls.
Solution Approach 2:
The service provider serves as an intermediary layer that sits between the child's device and both the information network and the payment system. This intermediary position enables comprehensive control over what information the child accesses and what services or purchases are permitted, extending parental control beyond traditional firewalls to include service signup and purchase authorization.
Data Source
AI summary
A non-transitory computer-readable storage medium, storing one or more programs configured for execution, the one or more programs for monitoring, transmitting, and recording usage of a computer or mobile device connected to a network, the one or more programs including instructions for establishing a first account, the settings of the first account being stored in a database; establishing a second account, the settings of the second account being stored in the database, wherein the second account includes a wish-list; linking the first and second accounts such that control settings of the second account are determined through the first account; and making a purchase from the wish-list of the second account consistent with the control settings of the second account.