TSX ends flat as RIM buckles, gold miners bounce






TORONTO (Reuters) – Canada‘s main stock index ended little changed on Friday as gold miners gained on safe-haven buying amid U.S. budget uncertainty, while BlackBerry maker Research In Motion Ltd plunged more than 20 percent.


The index’s materials sector, which includes miners, rose 0.4 percent. Even though the price of gold was near its lowest level in four months, the gold-mining sub-sector added 0.9 percent as investors fretted over stalled U.S. budget talks that could throw Canada’s largest trading partner back into recession.






“As our tiptoes are over the (U.S.) fiscal cliff and we’re looking over the abyss, the markets are upset obviously, and this is sort of putting a damper on the stocks,” said John Ing, president of Maison Placements Canada.


“But we’ve had a mixed reaction in Canada, mainly because the resources have been much better, like gold for example, which is hedging into the uncertainty (around the budget talks),” he said, noting gold miners had been under pressure for the last two weeks.


Miner Barrick Gold Corp edged up 0.2 percent to C$ 33.29. Centerra Gold Inc jumped more than 3 percent to C$ 9.10.


Gold miners are playing catch-up after underperforming throughout the year and could rise further in 2013, said Gavin Graham, president at Graham Investment Strategy.


Shares of RIM dropped 22.2 percent to C$ 10.86 on fears that a new fee structure for its high-margin services segment could put pressure on the business that has set the company apart from its competitors.


The Toronto Stock Exchange‘s S&P/TSX composite index <.gsptse> fell 3.01 points, or 0.02 percent, to end at 12,385.70. It gained 0.7 percent for the week.</.gsptse>


Efforts to avoid the looming U.S. “fiscal cliff” were thrown into disarray on Friday with finger-pointing lawmakers fleeing Washington for Christmas vacations even as the year-end deadline for action edged ever closer.


Graham said that until a deal is reached in the U.S. budget talks, investors will avoid economically sensitive Canadian stocks and those most closely tied to the U.S. economy: auto parts manufacturers, forestry companies and resource stocks generally.


“The resource sectors in Canada, which is half of the index, is going to be adversely affected, correctly or not,” he said.


“Chinese demand is likely to pick up somewhat now with the new leadership there but people will be focused on the U.S. given that it is still by far the most important export market for Canada.”


($ 1=$ 0.99 Canadian)


(Additional reporting by Claire Sibonney, Julie Gordon and Jeffrey Hodgson; Editing by Peter Galloway)


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World Music Awards postponed due to visa issues, Newtown tragedy






LOS ANGELES (Reuters) – The World Music Awards was postponed on Thursday due to “logistical and multiple visa issue,” organizers said, two days before the event was scheduled to be held in Miami.


Event producers John Martinotti and Marcol International said in a statement that the December 22 awards ceremony also was being delayed in the wake of the elementary school shooting in Newtown, Connecticut, last week.






“We are sorry for any inconvenience but this decision had to be made due to logistical and multiple visa issues and in view of this week’s national mourning. Fans have been a great support to the artists and have voted online in huge numbers,” the producers said in a statement.


The winners in categories ranging from world’s best song, world’s best artists and entertainer of the year, are picked by fans who vote online. The statement said that votes will continue to be collected until a new date is set for the show.


This year’s nominees include Usher, Justin Bieber, Nicki Minaj, Rihanna and Chris Brown. Past winners include Whitney Houston, Mariah Carey and Michael Jackson.


The awards ceremony, founded in 1989 and hosted by Monaco’s Prince Albert II, has primarily taken place in Monte Carlo and proceeds from the show go to charity. This year, show producers decided to move it to Marlins Park Stadium in Miami.


(Reporting By Piya Sinha-Roy, editing by Eric Kelsey)


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Early Language Skills Help Kids Manage Anger






The ability to use words as a toddler may affect the way a child manages anger later in life, a new study suggests.


Children with good language skills at age 2 expressed less anger during frustrating situations at age 4 than did those 4-year-olds with less advanced language skills, according to the study’s findings.






Children whose language skills developed quickly also expressed less anger at age 4.


While previous research suggested a link between language skills and the expression of anger in young children, few studies had followed children over time. [See Kids' Tantrums As Disorder Concern Doctors.]


The new study followed 120 children from 18 months old until they were 4. Children periodically underwent tests that assessed their language skills and their ability to cope with frustrating tasks. One task asked children to wait for eight minutes before opening a present while their mother finished work.


Two aspects of language appeared to help children rein in their anger. First, more-developed language skills allowed kids to ask for support from their parents during a frustrating situation  (for instance, asking the mother whether she was finished with her work). Children also used language to occupy or distract themselves from becoming angry. (One child dealt with the waiting task by counting for a full minute.)


“Better language skills may help children verbalize rather than use emotions to convey needs and use their imaginations to occupy themselves while enduring a frustrating wait,” said study researcher Pamela Cole, a professor of psychology at Pennsylvania State University..


The study appears today (Dec. 20) in the journal Child Development.


Pass it on:Toddlers with good language skills are better able to manage anger when they enter preschool.


Follow Rachael Rettner on Twitter @RachaelRettner, or MyHealthNewsDaily @MyHealth_MHND. We’re also on Facebook & Google+.


Copyright 2012 MyHealthNewsDaily, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Vote on US fiscal cliff ‘Plan B’







The Republican-led US House is set to vote on a package of spending cuts and tax rises party leaders say will keep the US away from the “fiscal cliff”.






The vote includes tax rises on earnings above $ 1m (£614,000) on Speaker John Boehner’s so-called “Plan B” option.


It comes as talks with the White House appear to have stalled, with President Barack Obama seeking a lower threshold.


A deal must be reached by 1 January, or a combination of steep tax rises and sharp spending cuts will take effect.


Analysts in the US and overseas have expressed concern that failure to reach a deal could take the US into recession.


Veto threat


A vote is expected by the late afternoon on Thursday, but could stretch on into the evening.


House Majority Leader Eric Cantor said on Thursday: “We, as Republicans, have taken concrete actions to avoid the fiscal cliff.”


He and Mr Boehner say the bill as proposed would ensure permanent tax cuts for 99.8% of Americans.


Continue reading the main story

What is the fiscal cliff?


  • On 1 January 2013, a series of tax increases and huge spending cuts are due to come into force – the so-called fiscal cliff

  • The deadline was put in place in 2011 as a means of forcing the president and Congress to agree on ways to save money over the next 10 years

  • If they can reach a deal before 1 January, the cliff will be averted

  • The fear is that raising taxes while massively cutting spending will have a huge impact on households and businesses

  • Experts believe it could push the US into recession, and have a global impact on growth, especially in China and Europe


But Mr Cantor added that Republicans would not be sending their members home for the Christmas recess after the vote – a sign that Congress could be expected to vote on a more bipartisan deal within days.


Correspondents say the Republican plan has no chance of passing the Democratic-led Senate, and is in effect an effort to tell the US public that they should not be blamed if the US falls over the fiscal cliff.


The White House has threatened to veto the legislation if does pass Congress, saying the bill would mean tax rises on 25 million Americans making under $ 250,000.


A study by the non-partisan Tax Policy Center found some low-income people would see tax rises because the measure would not renew several tax cuts that were part of the 2009 stimulus package.


On Thursday, the White House criticised Republicans, saying Mr Boehner’s response to compromises from the president was “to walk away” from negotiations.


Spokesman Jay Carney said the introduction of Mr Boehner’s so-called Plan B was a “multi-day exercise in futility at a time when we do not have the luxury of exercises in futility”.


‘Partisan war paint’


Mr Boehner announced the bill on Tuesday, saying he would bring forward a measure that extended Bush-era tax cuts for those earning less than $ 1m per year – but would not address the automatic spending cuts.


Correspondents say the move came as a surprise as negotiations appeared to be making progress.


On Wednesday, the Republican leadership added a companion bill that would replace the automatic cuts with a proposal to remove cuts from defence and government operating budgets. They would be offset by reductions elsewhere in the budget.


Continue reading the main story

Start Quote



It is positioning, theatrics, part of the negotiations, not the negotiations themselves. There are still few days left, and many think a deal will be done, because it has to be done”



End Quote



The proposal would cut food stamps, benefits for federal workers and some social services programmes.


On Wednesday, Mr Obama dismissed the bill, telling reporters that he and Mr Boehner were just a few hundred billion dollars apart on full 10-year deal.


The president said Republicans should “peel off the partisan war paint” and take his most recent offer.


Mr Obama is now proposing a tax rise on incomes over $ 400,000 (£247,000), an increase on the $ 250,000 level he had originally sought.


He also offered a change to the way Social Security cost of living adjustments are made for some recipients, cuts from government healthcare programmes and a two-year extension of the debt ceiling.


Mr Boehner’s office called the proposal “a step in the right direction” but not fully “balanced”.


In a brief news conference on Wednesday, the House Speaker countered that the president will bear responsibility for “the largest tax increase in history” if he does veto the bill.


But Senate leaders have signalled there is little hope for the measure in Congress’ upper-chamber.


Senate Majority Leader Harry Reid has said the proposal would not pass and that lawmakers would return to Washington next Thursday to continue working on a deal.


Analysts have painted a grim picture of the consequences of going over the cliff, with some warning that the impact could push the US back into recession.


The Organization for Economic Co-operation and Development (OECD) said in its latest economic outlook that the recession from the cliff could become global.

















































































Changing taxation across the years


Tax year1993-2000200120022003-20082009-20122012 tax brackets2013 scenarios

Source: Tax Foundation, IRS


Tax brackets shown for unmarried individuals



President


a9e78   64870078 clinton Vote on US fiscal cliff Plan B

Bill Clinton


a9e78   64881479 bush gettylong Vote on US fiscal cliff Plan B

George W Bush


a9e78   64870080 obamabbc Vote on US fiscal cliff Plan B

Barack Obama



Tax cuts expire



Tax cuts expire for top incomes



Bottom rate



15%



15%



10%



10%



10%



Up to


$ 8,700



15%



10%



15%



15%



15%



$ 8,700-$ 35,350



15%



28%



27.5%



27%



25%



25%



$ 35,350- $ 85,650



28%



25%



31%



30.5%



30%



28%



28%



$ 85,650- $ 178,650



31%



28%



36%



35.5%



35%



33%



33%



$ 178,650-$ 388,350



36%



33%



36%



Top rate



39.6%



39.1%



38.6%



35%



35%



Over


$ 388,350



39.6%



39.6%



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Wounded presage health crisis for postwar Syria






ATMEH, Syria (AP) — A baby boy joined the ranks of Syria’s tens of thousands of war wounded when a missile fired by Bashar Assad‘s air force slammed into his family home and shrapnel pierced his skull.


Four-month-old Fahed Darwish suffered brain damage and, like thousands of others seriously hurt in the civil war, he will likely need care well after the fighting is over. That’s something doctors say a post-conflict Syria won’t be able to provide.






Making things worse, there has been a sharp spike in serious injuries since the summer, when the regime began bombing rebel-held areas from the air, and doctors say a majority of the wounded they now treat are civilians.


This week, Fahed was recovering from brain surgery in an intensive care unit, his head bandaged and his body under a heavy blanket, watched over by Mariam, his distraught 22-year-old mother.


She said that after her first-born is discharged from the hospital in Atmeh, a village in an area of relative safety near the Turkish border, they will have to return to their village in a war zone in central Syria.


“We have nowhere else to go,” she said.


Even for those who have escaped direct injury, the civil war is posing a mounting health threat. Half the country’s 88 public hospitals and nearly 200 clinics have been damaged or destroyed, the World Health Organization says, leaving many without access to health care. Diabetics can’t find insulin, kidney patients can’t reach dialysis centers. Towns are running out of water-purifying materials. Many of the hundreds of thousands displaced by the fighting are exposed to the cold in tents or unheated public buildings.


“You are talking about a public health crisis on a grand scale,” said Dr. Abdalmajid Katranji, a hand and wrist surgeon from Lansing, Michigan, who regularly volunteers in Syria.


No one knows just how many people have been injured since the uprising against Assad erupted in March 2011, starting out with peaceful protests that turned into an armed insurgency in response to a violent government crackdown.


More than 43,000 have been killed in the past 21 months, said Rami Abdul-Rahman, head of the Britain-based Syrian Observatory for Human Rights, basing his count on names and details provided by activists in Syria. He said the number of wounded is so large he can only give a rough estimate, of more than 150,000.


Casualties began to rise dramatically at the start of the summer. At the time, the regime, its ground troops stretched thin, began bombing from the air to prevent opposition fighters from gaining more territory.


Seemingly random bombings have razed entire villages and neighborhoods, driving terrified civilians from their homes, with an estimated 3 million Syrians out of the country’s population of 23 million now displaced.


About 10 percent of the wounded suffer serious injuries and many of those will need long-term care and rehabilitation, said Dr. Omar Aswad of the Union of Syrian Medical Relief Organizations, an umbrella for 14 aid groups.


This includes artificial limbs and follow-up surgery. “This is of course not available and will be one of the major (health) problems in the months right after the war,” said Mago Tarzian, emergency director for the Paris-based Doctors Without Borders.


For now, aid groups are struggling to provide even emergency treatment in under-equipped clinics.


The two dozen small hospitals and field clinics in rebel-run areas of Idlib province in the north only have a few Intensive Care Unit beds between them, said Aswad. None has a CT scanner, an important diagnostic tool.


“We need generators, we need medical supplies and the most pressing is medicine,” he said.


The challenge has been compounded by new types of injuries.


The regime has begun dropping incendiary bombs that can cause severe burns, according to the New York-based Human Rights Watch, citing amateur video and witness accounts.


Ole Solvang, a researcher for the group, said he saw remnants of such a bomb on a recent Syria trip. Aswad said doctors in Idlib and nearby Aleppo province reported seeing patients with burns from such weapons.


Doctors and hospitals have also been targeted. Aswad, who fled the city of Idlib in March after regime forces entered it, said five friends in a secret association of anti-regime physicians have been arrested. Hospitals, ambulances and doctors have been attacked, Solvang said, calling it “a worrying trend that makes the medical situation even worse.”


One of the bright spots is a 50-bed emergency care clinic set up six weeks ago in a former elementary school in Atmeh.


Largely funded by a wealthy Syrian expatriate, the Orient clinic, with five ICU beds, handles some of the most serious cases in a radius of some 150 kilometers (90 miles), said its director, orthopedic surgeon Abdel Hamid Dabbak.


In the past, seriously wounded patients had to go to Turkey, risking dangerous delays at the border, he said. Now, once patients are stabilized in Atmeh, they are sent to a sister clinic across the border for follow-up care.


In Orient’s ICU, a 24-year-old rebel fighter was breathing oxygen through a mask. He had been brought in a day earlier, bleeding heavily from stomach wounds and close to death, said Dr. Maen Martini, a volunteer physician from Joliet, Illinois. After surgery, he stabilized and was taken off a respirator. A delayed crossing into Turkey would have killed him, Martini said.


The fighter’s neighbor was little Fahed, whose house had been struck by a missile on Saturday in the village of Kafr Zeita in Hama province. “The roof collapsed on us,” his mother said of the attack. “We ran out … I saw him bleeding from his head, but it was just a small cut.”


The local clinic said the injury was more serious than it seemed and the family rushed to Atmeh, more than 100 kilometers (60 miles) to the north.


Since surgery, Fahed has been nursing and has moved his arms and legs, and the doctor is hoping for a near-complete recovery.


“Clinically, he has improved dramatically,” he said.


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Video game shares down in wake of shooting






LOS ANGELES (AP) — Shares of video game makers and sellers fell Thursday in the aftermath of a mass shooting at a Connecticut elementary school, which has renewed debate about violent games and their potential influence on crime.


Shares of GameStop Corp., whose stores sell video games as well as systems like the Xbox and Wii, fell 5 percent in afternoon trading.






Investors are seen as being increasingly concerned that the government may impose tougher rules on the sales of games rated for “mature” and older audiences.


Investors may be worried that parents will also avoid buying first-person shooter games like “Call of Duty: Black Ops 2″ after the tragedy Friday morning at Sandy Hook Elementary, in which 20 children and six adults were shot and killed by 20-year-old Adam Lanza.


“Maybe there will be more stringent efforts to make sure youth are not playing games that they’re not old enough to play,” said Mike Hickey, an analyst with National Alliance Securities. “Maybe there will be a greater effort by parents in managing the content their kids are playing.”


Shares of companies involved in the video game industry, many of which had been dropping since the shooting, declined further Thursday.


GameStop stock lost $ 1.37, or 5 percent, to $ 26.18. Shares have barely changed since last Thursday’s close, the day before the shooting, to Wednesday’s close.


— Shares of Activision Blizzard Inc., the publisher of “Call of Duty: Black Ops 2,” fell 9 cents to $ 10.70. The stock had already dropped 5.6 percent.


Electronic Arts Inc. shares fell 41 cents, or 2.9 percent, to $ 13.99. Shares had dropped 5.6 percent.


— Take-Two Interactive Software Inc. shares slipped 29 cents, or 2.5 percent, to $ 11.69. The stock had dropped 8 percent.


The declines came as broader markets rose. The Dow Jones industrial average was up 0.3 percent at 13,295.


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Sanofi to pay $109 million to settle U.S. kickback charges






(Reuters) – French drugmaker Sanofi has agreed to pay $ 109 million to settle charges that it violated the False Claims Act by providing free drugs as a form of kickbacks to physicians, the U.S. Justice Department announced on Wednesday.


The settlement resolves allegations that Sanofi submitted false average sales price reports for the drug Hyalgan, a knee injection to treat arthritis, that did not account for free units distributed contingent on future purchases.






Average sales prices are used to determine reimbursement rates by government health programs, such as Medicare. The Justice Dept said the practice caused government programs to pay inflated amounts for Hyalgan and a competing product.


Sanofi sales representatives were given thousands of free “sample” Hyalgan syringes and used the free drug as kickbacks with a promise to provide negotiated numbers of the syringes in order to lower Hyalgan’s effective price, the government claimed.


The drugmaker said it had taken “strong, proactive and effective steps” to address the issue and voluntarily halted the Hyalgan sampling program in 2009.


The settlement with the U.S. Attorney’s Office, District of Massachusetts, the U.S. Department of Justice and several states resolves all claims arising out of the investigation into sampling of Hyalgan, Sanofi said.


In addition to the $ 109 million payment, Sanofi said it expects to enter into a Corporate Integrity Agreement with the Office of the Inspector General of the United States Department of Health and Human Services that will place its operations under enhanced scrutiny.


There are no criminal charges against the company related to the Hyalgan allegations.


(Reporting by Bill Berkrot; Editing by M.D. Golan)


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Google given EU anti-trust deadline







Google has been given a month to address complaints its search results favour its own services over those of its rivals.






EU regulators said they would end their investigation into the allegations if Google came “forward with a detailed commitment text in January 2013″.


If found guilty of breaching anti-trust rules, Google could face a fine of up to $ 4bn (£2.5bn).


Google said it continued to co-operate with the EU competition commission.


EU competition commissioner Joaquin Almunia said he had “decided to continue with the process towards reaching an agreement” to settle the investigation.


“Since our preliminary talks with Google started in July, we have substantially reduced our differences,” he wrote in an emailed statement.


“On the basis of the progress made, I now expect Google to come forward with a detailed commitment text in January 2013.”


The commission had been investigating Google since November 2010, following complaints from several rivals.


In May this year, Mr Almunia said Google had the chance to outline steps to address the claims, rather than face formal action.


The investigation centres on four areas:


  • the manner in which Google displays “its own vertical search services differently” from other, competing products

  • how Google “copies content” from other websites – such as restaurant reviews – to include within its own services

  • the “exclusivity” Google has to sell advertising around search terms people use

  • restrictions on advertisers from moving their online ad campaigns to rival search engines

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Worries grow in east Congo with fighter buildup






DAKAR, Senegal (AP) — Aid workers warned Wednesday that armed groups are setting up new front lines in and around the city of Goma in eastern Congo, where the U.N. said it now has documented at least 126 rape cases last month.


Thousands of fighters from the M23 rebel group withdrew several weeks ago from Goma, and the fighters have since taken steps toward negotiating with the Congolese government.






However, residents in Goma say M23 and other armed fighters are now positioning themselves in an around the city — including inside camps for people displaced by the violence.


The arrival of several thousand fighters within the last week is prompting fear among civilians, who already have experienced years of fighting and rebellions, said Tariq Riebl, Oxfam’s humanitarian coordinator there.


“They are very concerned — people are seeing this and they don’t know what it means,” he said. “I think what everyone is scared about is that it seems like people are ramping up, ramping up but for what purpose?”


Oxfam warns that more than 1 million people could come under attack if violence again flares in Goma, where more than 100,000 people already have fled from elsewhere in the region.


“Goma is typically the last refuge safe haven and now it’s being directly called into question. If Goma falls in a big battle, where are people going to go?” Riebl said.


“This is very, very disconcerting because you have a population of over 1 million people and if war were to break out, we’re looking at a horrific situation.”


The M23 rebel group, which is believed to be backed by neighboring Rwanda, is made up of hundreds of soldiers who deserted the Congolese army in April.


They took control of many villages and towns in the mineral-rich east over the last seven months, culminating in the seizure of Goma on Nov. 20. It took days of negotiations and intense international pressure, including from the U.N., for the thousands of fighters from M23 to finally withdraw from the regional capital.


The U.N. mission says it’s received allegations of serious rights violations, including killings and wounding of civilians, rape, looting, and forced recruitment of children, by elements of the M23 rebels in Goma and neighboring areas.


Congo’s armed forces are also blamed for a series of attacks as they fled Goma in retreat in late November.


The U.N. said Tuesday it now has been able to document at least 126 rapes during that period in the Minova area, about 60 kilometers (40 miles) south of Goma.


U.N. spokesman Martin Nesirky said that two Congolese soldiers so far have been arrested in connection with the rapes, while seven others had been implicated in looting in the area.


“The Congolese Armed Forces have started investigating those human rights violations,” he said. “The U.N. Mission is supporting the military justice procedure in conducting thorough investigations into these allegations to ensure that the perpetrators are identified and held accountable.”


Rape has long been used as a brutal weapon of war in eastern Congo, where both soldiers and various armed groups use sexual violence to intimidate, punish and control the population.


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Changes in law aim to protect kids’ online data






WASHINGTON (AP) — Aiming to prevent companies from exploiting online information about children under 13, the Obama administration on Wednesday imposed sweeping changes in regulations designed to protect a young generation with easy access to the Internet.


Two years in the making, the amended rules to the decade-old Children’s Online Privacy Protection Act go into effect in July. Privacy advocates said the changes were long overdue in an era of cellphones, tablets, social networking services and online stores with cellphone apps aimed at kids for as little as 99 cents.






Siphoning details of children’s personal lives — their physical location, contact information, names of friends and more — from their Internet activities can be highly valuable to advertisers, marketers and data brokers.


The Obama administration has largely refrained from issuing regulations that might stifle growth in the technology industry, one of the U.S. economy’s brightest spots. Yet the Federal Trade Commission pressed ahead with the new kids’ privacy guidelines despite loud complaints — particularly from small businesses and software apps developers — that the revisions would be too costly to comply with and cause responsible companies to abandon the children’s marketplace.


As evidence of online risks, the FTC last week said it was investigating an unspecified number of software developers that may have illegally gathered information without the consent of parents.


Under the changes to the law, known as COPPA, information about children that cannot be collected unless a parent first gives permission now includes the location data that a cellphone generates, as well as photos, videos and audio files containing a human image or voice.


The Congressional Bipartisan Privacy Caucus commended the FTC for writing the new rules. “Keeping kids safe on the Internet is as important as ensuring their safety in schools, in homes, in cars,” caucus co-chairman Rep. Edward Markey, D-Mass., said at a Capitol Hill news conference.


Data known as “persistent identifiers,” which allow a person to be tracked over time and across websites, are also considered personal data and covered by the rules, the agency said. But parental consent is not required when a website operator collects this data solely to support its internal operations, which can include advertising, site analysis and network communications.


The rules offer several new methods for verifying a parent’s consent, including electronically scanned consent forms, video conferencing and email.


The FTC sought to achieve a balance between protecting kids and spurring innovation in the technology industry, said Jon Leibowitz, the agency’s chairman.


The final rules expand the definition of a website or online service directed at children to include plug-ins and advertising networks that collect personal information from kids.


But the rules were also tightened in a way favorable to some Internet heavyweights, Google and Apple. Their online apps stores, which dominate the marketplace for mobile applications, won’t be held liable for violations because they “merely offer the public access to child-directed apps,” the FTC said.


Google and Apple had warned that if the rule were written to include their stores, they would jettison many apps specifically intended for kids. They said that would hurt the nation’s classrooms, where new and interactive apps are used by teachers and students.


A Washington trade group that represents independent apps developers criticized the agency for addressing the concerns of large businesses while doing too little for the startups that make educational apps parents and teachers want. The FTC’s belief that the apps industry will figure out how to thrive under the new rules is akin to jumping off a cliff then building a parachute, said Morgan Reed, executive director of the Association for Competitive Technology.


“While that may work for big companies, small companies lack the silk and line to build that parachute before they hit the ground,” Reed said.


Companies are not excluded from advertising on websites directed at children, allowing business models that rely on advertising to continue, Leibowitz said. But behavioral marketing techniques that target children are prohibited unless a parent agrees. “You may not track children to build massive profiles,” he said.


The agency included in the rules new methods for securing verifiable consent after the software industry and Internet companies raised concerns over how to confirm that the permission actually came from a parent. Electronic scans of signed consent forms are acceptable, as is video-teleconferencing between the website operator or online service and the parent, according to the agency.


The FTC also said it is encouraging technology companies to recommend additional verification methods. Leibowitz said he expects that this will “unleash innovation around consent mechanisms.”


Emailed consent is also acceptable as long as the business confirms it by sending an email back to the parent or calling or sending a letter. In cases of email confirmation, the information collected can only be used for internal use by that company and not shared with third parties, the agency said.


The FTC’s investigation of apps developers came after the agency examined 400 kids’ apps that it purchased from Apple’s iTunes store and Google’s apps store, Google Play. It determined that 60 percent of them transmitted the user’s unique device identification to the software maker or, more frequently, to advertising networks and companies that compile, analyze and sell consumer information for marketing campaigns.


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