It’s finally happened – the United States Senate passed COPPA 2.0. And it’s a game-changing update for online advertisers and digital publishers. 

What does this mean exactly? Check out the video below to hear directly from KidSafe and Playwire experts or continue scrolling for insight from Playwire CEO, Jayson Dubin.

 

As you may remember, the original Children's Online Privacy Protection Act, which was introduced back in 1998, established major legislative protections guarding kids’ privacy online. But if you can remember, mobile apps and social media did not exist back in the 90s.

COPPA 2.0 addresses these as well as many additional online changes that have occurred within the last two decades, introducing critical changes that will not only tighten those protections but also expand them to an even wider age range. 

And although it introduces major challenges for publishers and advertisers, it’s a necessary change in many ways. As Playwire CEO, Jayson Dubin, notes:

“The original COPPA was an attempt to say that we have to be careful about what we're doing as we start to have kids going online. But the internet has evolved – the way we use it, its available applications, and the data we collect. The users have also evolved. [COPPA 2.0] is the government trying to get on top of all of these things.”

So, exactly what changes are on the horizon, because there remain several possible paths this legislation can take as it continues to move forward, and how will it impact your future ad strategy? Let’s break it down.

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Key Changes in COPPA 2.0

Let’s begin by highlighting several important updates that publishers, advertisers, and tech providers alike need to plan for with the Senate passing of COPPA 2.0:

  1. A Wider Age Range: Previously, COPPA only impacted kids up to 13 years old, whereas this new legislation will cover everyone up to 16 years old. In other words, you’ll need to start using contextual targeting to reach a wider range of younger audiences.
  2. Stricter Rules About Data Collection: COPPA 2.0 also further tightens the rules around how kids’ online data can be collected and used.
  3. Stronger Enforcement: With COPPA 2.0, government regulators plan to increase the financial and legal penalties if you violate COPPA law, which is currently up to $50,000 per violation.
  4. Updated Definition of Personal Information: As is the case with most things, technology has advanced greatly since the initial version of COPPA was drafted, so it’s no surprise that they’ve also updated the definition of “personal information” to include newer elements like voice recordings and biometrics.

Since the original COPPA laws were enacted, advertisers and publishers have had a heavy responsibility to protect kids online. These changes keep that responsibility aligned with the current state of the digital world, heightening what the digital world now deems must be protected under COPPA.

Who Is Impacted By COPPA 2.0?

At first glance, it may seem straightforward – COPPA 2.0 expands the protected age range up to 16. But in practice, this is bound to introduce a few complications for all those who exist across the digital media industry.

In its initial incarnation, COPPA stated that a publisher needed “actual knowledge of having underage users.” This, as Jayson notes, was an attempt at a legal standard, but the impact was that many sites fell through the cracks, landing in that gray area because they weren’t explicitly deemed “child-directed” sites or apps.

For example, let’s say you run a website about video games. You may have a general awareness that teenagers likely interact with your content, but it’s not like you’re asking for their age every time.

Under the old COPPA, you might have assumed you weren’t covered.

But COPPA 2.0 carefully updates the language. Now, publishers need, “actual knowledge, or knowledge fairly implied based on objective circumstance.”

Ok, but what does that mean? According to Jayson:

“This is going to be up to the Federal Trade Commission (FTC) to interpret. The FTC is supposed to give examples and guidance so that industries can adapt. And it will have a huge impact on digital publishing and online advertising — because even if you don’t have explicit knowledge of which user is a teenager, you’re still going to have to be more cautious than ever before.”

In other words, if you can reasonably assume that teenagers are likely to interact with your content, it’s safe to assume that COPPA 2.0 covers you. And that means you’ll need to make some big changes.

How Do These Changes Impact Publishers?

With these updates, publishers will have to make some big changes to their systems and strategies. In particular, you’ll need to pay attention to how you: 

  • Collect data
  • Gather consent
  • Create content

Keep reading to dive deeper into each category.

Changes to Data Collection Practices

If you advertise or provide online tools or services to children, you probably already have some of these mechanisms in place. But with the expansion delivered by COPPA 2.0, you’ll need:

  • Robust Age Verification Systems: With an age range extended to 16, it’s even more important to have robust age verification systems in place. You might want to use technology like multi-factor verification to stay COPPA compliant. 
  • Revised Data Collection Forms: With the expanded age and definition of personal info, you’ll need to take a new look at the data you collect and the mechanisms you use to collect it. For example, you may need to update your registration forms or provide a clearer explanation for parents of what data will be collected and how it will be used. 
  • Ensure Parental Consent: Parental consent was already important, but with these changes, you’ll need to make sure there are clear processes for obtaining that consent even for older kids and teens. You’ll also need to be transparent about what consent is needed and why.

Updated Consent Mechanisms

The extended age range and stricter COPPA regulations mean publishers will need to re-evaluate their existing consent mechanisms to ensure everything is both compliant and age-appropriate. 

This includes: 

  • Creating Age-Appropriate Content Areas: While COPPA 2.0 applies to all kids up to 16 equally,  that doesn’t mean that all kids should be served the same content. After all, six-year-olds have much different needs and interests than fifteen-year-olds. You can manage COPPA compliance effectively while still serving each group appropriate content by creating specific content areas for each age group.
  • Developing Intuitive Parental Consent Processes: With the expanded need for parental consent, you’ll need to simplify the process for parents so they understand what is needed and why. Make it intuitive with clear language and visual aids to guide parents through the process.
  • Being Clear and Transparent: Be transparent about what you’re collecting, why, and how you plan to use it. This will help build a foundation of trust with parents. Keeping them updated can reassure them that their children's personal data is being handled responsibly.

These practices can help you create a safer online space for kids, while also making sure parents feel informed and confident about how data is handled. This ensures that both children and their families can enjoy your content with peace of mind.

 

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Effects of COPPA 2.0 on Content Creation and Monetization

With COPPA 2.0 broadening the age range, publishers are going to have to reconsider their approaches to content creation and monetization, in particular ad monetization. 

The biggest potential complication, according to Jayson Dubin, is older teens. 

“Teens end up reading almost anything on the internet. It’s not as if you have to just have actual knowledge of underage users. It could also be implied — as in, you could reasonably infer that somebody who’s reading a piece of content might be underage. So the industry’s going to have to work a lot harder to determine this, and it’s going to have to change some of its content and monetization approaches.”

So how do you adapt to a COPPA 2.0-led landscape?

  • Adapt Your Content for the New Age Range: With the updates, you’ll need to make sure your content and protections are appropriate for each age group. For example, you might need to create more educational and entertaining content for older kids that doesn’t rely on data collection to be effective.
  • Expand Your Monetization Strategies: With the tightened restrictions on targeted advertising, publishers will need to incorporate innovative, safety-driven strategies for implementing ads, and communicating age-related information with advertisers and demand partners to ensure your revenue stream doesn’t take a hit. Working with an experienced partner is the easiest and most cost-effective way to do so. Remember, the consequences of not complying with COPPA will be higher than ever before.
  • Anticipate a Decrease in Targeted Advertising Revenue: Truthfully, many publishers may see a decrease in revenue from children’s content due to COPPA 2.0’s expanded restrictions. Incorporating diverse income sources and working with the right revenue partner could help offset the impact and boost your financial stability. 

With that said, Playwire is one of those experienced, COPPA-compliant partners that we alluded to above that can help publishers stay compliant with COPPA 2.0 regulations and advertisers access high-quality, brand-safe inventory through a: 

  • Family-Friendly Ad Server and SDK
  • COPPA-compliant programmatic demand
  • Manual creative approvals in collaboration with premium brand partners

As a result, publishers can continue to maximize revenue, advertisers can safely and effectively reach their target audience, and everyone can rest assured they are COPPA-compliant.

What Comes Next? Stay In the Know on COPPA 2.0 with Playwire

COPPA 2.0 is a significant step forward for children's and teens' online privacy, but it also introduces new challenges for publishers. By embracing these challenges, you can create safer, more engaging digital experiences for kids and teens, and continue to drive steady ad revenue.

It’s important to note that we are in the very early stages of this new legislation. Now that it has passed in the Senate, what comes next will rely on a few things including:

  • The FTC must offer more conclusive guidance and next steps, and
  • The ad tech industry will have to determine whether it has to make changes to current signals that participants are currently passing back and forth to determine what ad requests are meant to be child-protected.

This is just the beginning.

As for Playwire, we’re paying careful attention so our partners know what we’re doing to protect them, as well as what they need to do to protect themselves, against costly fines, and working closely with industry leaders to stay ahead of the COPPA curve. 

Stay tuned to our website and social channels for more information to come in the coming months, or contact our team of COPPA experts today.

Please note, that the content in this article is speculation based on the fluid information we are learning about COPPA 2.0 as more details are publicly shared. The intent is to educate publishers and advertisers, but is not intended to be legal advice.

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