What changed at the FTC on children’s privacy?

In early 2026, the FTC signaled it would pause new AI rulemaking and put more resources into COPPA oversight. That shifts attention to age designation, consent, and third-party data sharing. For US companies, the near-term risk is enforcement, not new statutes, within existing data privacy regulations.

Who faces the highest COPPA enforcement risk?

Video platforms, app stores, ad tech, SDK vendors, and EdTech with meaningful youth traffic carry the most exposure. Red flags include weak age assurance, mislabeled content, geolocation collection, and sharing IDs with analytics partners. Under data privacy regulations, failure to secure verifiable parental consent can draw orders and monetary relief.

What does verifiable parental consent require?

It means confirming a parent approves data collection for a child before tracking or personalized features. Programs need clear notices, reliable identity checks, and records of method and timing. Strong parental consent compliance also includes easy revocation, data deletion, and tight controls on third-party processing.

What should investors monitor next?

Watch FTC actions, app store guideline updates, and school district procurement rules. Review company disclosures on consent rates, SDK audits, and privacy engineering staffing. Compare these signals across peers. Firms that report consistent progress likely face lower enforcement risk and steadier margins.

Law and Government

February 03: FTC Focus on Kids’ Privacy Elevates COPPA Risk for Platforms

ByHuzaifa Zahoor February 3, 2026February 3, 2026

Data privacy regulations are moving to the front of the policy agenda as the FTC pauses new AI rules and intensifies COPPA enforcement. For US platforms, app stores, ad tech, and EdTech, this shift raises near-term legal risk around age designation, verifiable parental consent, and third-party SDKs. Recent actions tied to YouTube labeling, the Apitor SDK’s geolocation collection, and teen-focused design at Iconic Hearts point to higher compliance costs and settlement risk. We outline impacts, control steps, and what investors should watch next.