Advertising aimed at children and teens is facing increasing scrutiny from federal and state regulators, as concerns mount over data collection and the blending of ads with entertainment content. The Federal Trade Commission (FTC) and state authorities are pushing for stronger safeguards to protect younger audiences, with the FTC taking the lead in addressing “blurred advertising”—a practice where the lines between ads and entertainment become difficult for kids to recognize.
In a staff paper released in September 2023, the FTC outlined five key steps advertisers and platforms should take to reduce the risk of confusing young viewers. These recommendations include using visual and audio cues to clearly differentiate ads from entertainment, providing prominent disclosures about the advertising nature of content, and incorporating recognizable icons to help children identify ads. The agency also urged the need for parent and child education on digital advertising and suggested the introduction of platform tools to monitor and control access to such content.
In addition to these advertorial guidelines, the FTC is also pushing for regulatory changes to the Children’s Online Privacy Protection Act (COPPA). Proposed in December 2023, these changes aim to bolster data security, tighten parental consent requirements, and limit the data that websites can use to promote services to children. Public comments on these proposed revisions will be accepted until March 2024.
At the state level, privacy protections for children are also gaining momentum. The California Age-Appropriate Design Code Act (ADCA), set to take effect in July 2024, requires businesses that offer online services likely to be accessed by minors to implement stricter privacy and safety measures. However, the law has faced legal challenges, with a preliminary injunction issued in September 2023 by U.S. District Court Judge Beth Freeman. The judge found that the law may violate the First Amendment, prompting an appeal by the California attorney general.
Meanwhile, other state legislatures are exploring bans on children’s access to social media platforms, with similar legal challenges emerging. Several state attorneys general have also filed lawsuits against social media companies, accusing them of using manipulative design elements to collect data from users under 13 without proper consent.
As the legal landscape continues to evolve, brands should closely monitor these developments and review their advertising strategies to ensure compliance and mitigate risk. The push for greater transparency and stronger privacy protections is reshaping how companies engage with younger audiences online.