The Impact of New US State Laws on Children’s Data Privacy and Targeted Advertising

The landscape of privacy laws in the United States is evolving rapidly, with new requirements regarding the processing of children’s data emerging at the state level. While much attention has been focused on comprehensive privacy laws like the California Consumer Privacy Act (CCPA), these new regulations are flying under the radar but could have a significant impact on targeted advertising in the country.

One key takeaway is the increasing age of consent for the collection of children’s data. Traditionally, the Children’s Online Privacy Protection Act (COPPA) required verifiable parental consent for children under 13. However, laws like the CCPA and the Connecticut Data Privacy Act (CTDPA) now mandate opt-in consent for minors aged 13-15 before their personal data can be sold or used for targeted advertising. New Jersey’s S.B. 332 will raise that age to 16, and amendments to the CTDPA will require consent for minors aged 13-17.

Another significant development is the focus on age-appropriate design for online services targeting minors under 18. States like California and Connecticut have enacted laws that require companies to design their services in ways that protect children’s privacy, conduct data protection assessments, and limit data processing to essential purposes.

Furthermore, social media restrictions are also being implemented in states like Louisiana, Utah, and Texas, which could impact how companies advertise to younger audiences on these platforms. These laws may indirectly affect businesses that rely on social media for marketing and advertising to minors.

In conclusion, companies in the ad tech ecosystem need to be aware of these evolving state laws and carefully assess their data collection and processing practices related to minors. Compliance with these regulations is crucial to avoid potential legal issues and ensure responsible handling of children’s data in the digital age.