US government denies ESRB's AI-powered face-scanning 'age estimation' proposal, but it's probably not gone for good

pcgamer.com:

In 2023, the Entertainment Software Rating Board, along with digital identity company Yoti and «youth marketing solutions» provider Superawesome, filed a proposal with the FTC for a new «verifiable parental consent mechanism» called Privacy-Protective Facial Age Estimation. The FTC has now issued its response to that proposal, and the answer is «no»—for now.

The ESRB's proposed technology stirred feathers almost immediately, and understandably so: The idea of having to essentially submit a selfie to prove to a machine that you're old enough to play GTA 6 is inherently intrusive, and that's before you even get into questions of technological bias and whether or not the thing would work well enough to justify the headaches that would inevitably erupt for at least some users.

The ESRB moved quickly to reassure the public that the system is not meant to identify individuals but simply to estimate age, and that it would not store any data after the analysis was complete. It was also not intended to ensure compliance with the ESRB's age ratings, but rather with COPPA—the Children's Online Privacy Protection Act—a US privacy law that requires «verifiable parental consent» before companies are allowed to collect or share data from children under the age of 13.

Unlike the ESRB rating system, which is voluntary, COPPA is legally binding, and breaking that law can be awfully expensive. In 2022, for instance, Epic Games agreed to pay a$275 million penalty for COPPA violations, while in 2023 Microsoft ate a $20 million fine for violations of its own on Xbox Live. So you can understand why companies might be eager to find a low-effort system that enables them to at least say, «Hey, we tried.»

But for now, the ESRB's proposed solution isn't going to be it. In a ruling issued on March 29, the FTC said that after receiving more than 350 comments on the proposal, it voted unanimously to deny the application. The denial was issued without prejudice, meaning the ESRB and its associates