With children spending more time online, effective parental control measures have become increasingly crucial. These tools not only help parents ensure their children's safety but also aid in managing their online activities responsibly. In 2023, Xsolla teamed up with PRIVO, an FTC-approved COPPA safe harbor and child privacy expert, to help launch Xsolla Parental Controls, an integrated solution that safeguards young gamers by enabling parents to manage and control their children's access to digital payments, ensuring secure transactions. In this guide, we'll delve into the importance of parental controls in the industry; explore current trends in privacy protections for children and how companies like PRIVO support online services to comply; and spotlight how Xsolla Parental Controls offers game developers a comprehensive solution for direct-to-consumer sales that prioritize the security of children’s online payments.

Latest trends and market insights

Parental controls in the gaming industry are like a digital toolbox — they empower parents and guardians to monitor, manage, and restrict children's access to online content and activities. Driven by parents' growing awareness of online safety and their desire to ensure their children's digital well-being, market data shows an increase in parental control use, with apps projected to reach $2.48 billion by 2030. Additionally, over 90% of parents who use parental control apps find them helpful, highlighting their effectiveness in safeguarding children online. This growth reflects a global demand for robust parental control solutions. So how are parents actually using these tools? Here's a breakdown of the key trends:

• Beyond blocking content. Parental controls are becoming more versatile with nearly 30% of parents using them to monitor and regulate in-app purchases, showcasing their value in managing finances alongside online safety.
• Communication monitoring. 49% of parents review their children's call and text history, highlighting the growing focus on monitoring communication channels to ensure children's safety.
• Screen time management. 72% of parents use controls to limit screen time, reflecting concerns over excessive device usage and its potential impact on children's development.

About Xsolla Parental Controls

Though these tools are crucial in the digital age, their effectiveness can be unevenly applied due to varying levels of guardian awareness. Recent FTC enforcement of COPPA regulations, which aim to ensure a safe gaming environment for younger users, has highlighted this issue. With the FTC's increased scrutiny, mid-tier and indie publishers are facing heightened examination of their compliance with consumer protection laws. Criticism of misleading marketing practices related to in-app purchases in some games highlights the need for stronger safety measures. Certified and secure gaming payments In response, Xsolla, a leader in industry innovation, has partnered with PRIVO to develop advanced parental control solutions and create Xsolla Parental Controls. This collaboration aims to promote a safer payment ecosystem by ensuring parents are informed and involved in their children’s transactions. Additionally, as a Merchant of Record, Xsolla complies with international regulations, assuring developers that it adheres to privacy requirements regarding payments for children. And as part of our partnership with PRIVO, as well as our commitment to advocating for a safer gaming environment, this solution is COPPA-certified and has been awarded PRIVO’s GDPRkids™ trust mark. Key features Encouragingly, statistics reveal that over 65% of parents who have implemented parental controls engage in regular discussions about digital safety with their children, compared to just 25% of parents who haven't. The features of Xsolla Parental Controls are designed to support this proactive approach by providing tools that enhance oversight and engagement in managing children’s gaming transactions and interactions. Xsolla Parental Controls addresses key concerns like:

• Age gating. Verify the age of users to maintain regulatory compliance and protect minors from unauthorized transactions.
• Guardian account. Arm guardians with an all-in-one security tool to oversee transactions made by minors, approve purchase requests, and more.
• Payment notifications. To ensure they stay informed, notify guardians/parents via email or SMS about new transaction requests and approvals.
• Comprehensive transaction history. Display all transactions in the guardian’s Xsolla account, offering complete transparency and ease of monitoring.
• Customizable permissions. Enable guardians to set specific spending limits and permissions for minors, tailoring the experience to fit each family’s needs.

How it works

This solution focuses on enhancing transaction transparency and parental oversight within the payment process. By implementing measures like age-gating and guardian verification, the goal is to foster a safe digital environment for children. Image copy: XSOLLA PARENTAL CONTROLS, STEP-BY-STEP These tools are designed to keep parents actively involved in their children's purchasing activities, ensuring a more controlled and secure payment environment. How Xsolla Parental Controls can benefit game developers To cultivate this collaboration between developers and parents and foster a more positive and secure gaming experience for everyone, Xsolla Parental Controls can become a solution that addresses the evolving payment needs of modern families in the digital age. This enables the integration of an additional level of verification for guardians, traditionally provided by platforms and marketplaces, to ensure safe and compliant payments, as well as the ability to:

• Regulatory compliance. Adhere to legal standards like COPPA and GDPR to safeguard your business and protect user purchases.
• Guardian transparency and convenience. Give guardians an easy way to approve or reject transactions from anywhere, ensuring their child’s online safety.
• Strengthen user trust. Foster loyalty and trust with your users by building a data-safe environment for minors and their families.

Acting as a Merchant of Record, Xsolla also complies with international privacy regulations, ensuring developers adhere to privacy standards for purchases made by minors. It also allows developers to focus on crafting engaging gameplay experiences while ensuring the highest standards of safety, security, and privacy protection for their players worldwide. And with the support of our expert team, we facilitate the creation of a secure and efficient payment system that seamlessly integrates with our range of services, including Xsolla Pay Station, Xsolla Web Shop, Xsolla Game Sales, and more. Ready to create a secure and engaging gaming experience? Contact Xsolla's team of experts at business@xsolla.com to learn how we can help. Or, sign up with your Publisher Account to get started.

About COPPA

The Children's Online Privacy Protection Act, known as COPPA, was enacted by the United States Congress in 1998. COPPA places certain requirements on operators of websites or online services (apps, games online, connected toys, learning platforms, etc.) that are directed to children under 13 years of age or who have actual knowledge that they are collecting personal information online from a child under 13 years of age. COPPA requires operators to notify parents of their information practices; obtain verifiable parental consent; collect the least amount of data possible; and maintain reasonable procedures to protect the confidentiality, security, and integrity of children’s personal information. The primary goal of COPPA is to place parents in control over what information is collected from their young children under the age of 13 online and to protect them while accounting for the dynamic nature of the Internet. Operators who violate the Rule can be held liable for civil penalties of up to $50,120 per violation by a court.

About GDPR

The GDPR went into effect May 25, 2018. The regulation focuses on providing data protection and privacy for all individuals within the European Union and all individuals whose data is processed by an EU controller regardless of location. Children merit special protection with regard to processing their data for marketing. Recital 38 protects young users because they may be less aware of the risks, consequences and safeguards concerned with marketing. The GDPR sets the age of consent at 16, but individual member states may lower this as far as 13. A child below the age of consent cannot provide consent for themselves. There are other key requirements when it comes to processing a child’s data such as clear, child-friendly privacy notices and ensuring the child can action their rights including the right to be forgotten. Less severe infringements can result in a fine of €10 million or 2% of a firm's annual revenue from the preceding financial year, depending on which amount is higher. More serious violations can result in a fine of up to €20 million or 4% of a firm's annual revenue from the preceding year, depending on what is higher.

About PRIVO

PRIVO is a leading authority in children's online privacy, minors’ digital identity and consent management. PRIVO's signature Kids Privacy Assured program aids companies in navigating the online privacy landscape from COPPA, GDPR to the Children Codes. Additionally, PRIVO’s specialized suite of cloud-based solutions including age verification, youth registration, and parental consent, enable companies to seamlessly engage with - or block access to - minors. PRIVO has been an FTC-approved COPPA Safe Harbor since 2004, trusted by leading and well-known family brands. www.privo.com