Updates to the Children's Online Privacy Protection Act (COPPA) are forcing marketers to rethink how they’re reaching children online, making transparency increasingly important as regulators, advertisers, and platforms face greater scrutiny over how kids' data is collected and used.

• The updates went into effect on April 22 and expand the definition of personal information to include biometrics, requires greater transparency around data collection and gives parents multiple opportunities to consent or decline data sharing, rather than presenting them with a one-time approval.

“There’s quite a significant tightening of the rules, certainly in the last few years,” said Emma Witkowski, VP of media solutions at WildBrain, which owns IP including Teletubbies and Strawberry Shortcake. “On a very broad level, it’s gone from saying ‘Be careful with kids’ data’ to ‘Prove you don’t monetize or misuse it at all.’’’

‘Transparency is brand safety’

Concerns about data privacy, security, and regulatory compliance is a top barrier to AI adoption among marketers worldwide, according to a December 2025 Supermetrics survey. Prioritizing safety for this cohort and controlling extreme targeting is especially important in the age of AI, said Joe Gagliese, cofounder and co-CEO of Viral Nation.

As marketers adopt AI in automation workflows, video vetting and impression reporting is not something advertisers can afford to skimp on under COPPA, said Witkowski.

“Transparency is brand safety,” she said. “I think the term 'brand safety' has been around for so long, and operating in the ‘Made for Kids’ space, there's absolutely no room for ambiguity. Advertisers need to know where their message ran.”

Compliance through context

Some media partners may misrepresent content classifications to secure ad approvals, even when the content's eligibility for kid-safe inventory is questionable, said Witkowski.

“Sometimes we have to turn money down because we want to operate in a fully compliant way, because at the end of the day, we are solely a kids and family business, so we don't ever want to be on the wrong side of any of this compliance,” she said.

While paid advertising allows brands to target specific audiences directly, organic marketing becomes far more challenging when marketers have less access to user-level data, said Gagliese. This is where contextual advertising comes into play.

“The smart brands are shifting from behavioral precision to contextual reliance or community and culture,” he said. “I think it’s going to work better over time for that audience anyway.”

The bigger picture on data

Online child safety has become a growing point of contention among platforms, parents, and policymakers, with each group placing blame on another in protecting young users online.

Legal action against social platforms is heating up this year, with a Los Angeles jury finding Meta and YouTube negligent in protecting minors from mental health challenges caused by their platforms. The target was product design over user content, placing responsibility squarely on the platforms themselves.

While COPPA focuses on children under 13, concerns about online safety are increasingly extending to older age groups as well. This month, the UK placed a ban on social media for children under the age of 16, mirroring Australia’s policy from last year.

While the lawsuits and regulations have largely focused on children and teens, they can preview broader impact on users of all ages, said our analyst Ethan-Kramer Flood in a “Behind the Numbers” episode.

“So far, this social media storyline has focused on lawsuits related to kids because that's probably the path of least resistance to get a legal settlement, but you could very easily transition this into ‘Their products hurt everyone,’” he said.

Kids’ privacy as a testing ground

The same dynamic is playing out in privacy regulation. Just as policymakers are using child safety measures to address concerns about social media, children's privacy laws may serve as a blueprint for broader consumer protections, said Gagliese.

• 74% of US adults support preventing the collection of personal data on children under the age of 18, and 71% believe parental consent should be required to set up an account, according to a December 2025 CivicScience survey.

“I think this is step one in an evolution of consumer safety,” said Gagliese, adding that cracking down on protections for kids is a safe, widely-supported move.

Speaking to the Gen Alpha cohort protected by COPPA, responsibility needs to be shared for change to happen, said Gagliese.

“I do think there’s a bit of parental accountability that comes with this stuff that is equally important in terms of outcome,” he said. “That’s how we actually get to something that really helps kids, versus the platforms trying their hardest without that piece attached.”