Study: Trends in Child Data Privacy and Transparency

Child data privacy is an urgent issue as online risks grow. Here’s what you need to know right away:

• 1.7 million children in the U.S. were affected by data breaches in 2022.
• Online predators are 500,000 strong daily, exploiting social media.
• Reports of online enticement surged 300% from 2021 to 2023.
• New laws like the 2025 COPPA update and state-level rules are tightening protections.

Key Solutions:

• Transparency: Companies must clearly explain data collection and let parents opt out.
• Stronger Laws: New rules now cover biometric data and stricter parental consent.
• AI Tools: Platforms like Guardii use AI to monitor risks while respecting privacy.

The stakes are high, with kids' safety and trust in digital spaces at risk. Dive into the full article to learn how better laws, tech, and education are reshaping child data privacy.

Current Trends in Child Data Privacy Laws

Changes in U.S. Privacy Laws

For the first time in over a decade, the Federal Trade Commission (FTC) has updated the Children's Online Privacy Protection Act (COPPA). On January 16, 2025, the FTC unanimously approved significant changes to the law, marking its first revision since 2013. These updates clarified key definitions, included biometric data under its scope, and expanded parental consent options. Speaking about the changes, FTC Chair Lina M. Khan emphasized:

"The updated COPPA rule strengthens key protections for kids' privacy online. By requiring parents to opt in to targeted advertising practices, this final rule prohibits platforms and service providers from sharing and monetizing children's data without active permission. The FTC is using all its tools to keep kids safe online."

State governments have also stepped up with their own measures. By January 2025, 19 states had enacted laws mandating age verification to access content deemed potentially harmful. Many of these state laws go beyond federal standards, particularly in addressing data collection on social media platforms.

For instance, California's Protecting Our Kids from Social Media Addiction Act, signed on September 20, 2024, bans the collection of data from children under 18 without explicit parental consent. Florida has taken an even tougher stance with its Social Media Safety Act, which became effective on January 1, 2025. This law requires platforms to verify users’ ages and mandates account termination for children under 14. Violations can result in fines of up to $50,000 per instance.

New York introduced the Child Data Protection Act (CDPA), which went into effect on June 20, 2025. Unlike COPPA, which applies only to children under 13, the CDPA extends protections to users under 18, making it one of the most far-reaching child privacy laws in the country.

Texas has also been active in enforcement. Texas Attorney General Ken Paxton has made clear the state's commitment to ensuring compliance:

"Technology companies are on notice that [the Texas Attorney General's] office is vigorously enforcing Texas's strong data privacy laws. These investigations are a critical step toward ensuring that social media and AI companies comply with our laws designed to protect children from exploitation and harm."

These legal shifts are reshaping how companies handle data collection, emphasizing stricter safeguards and greater transparency.

New Transparency Requirements in Regulations

Alongside these legal changes, new transparency rules are transforming how companies communicate their data practices to parents and children. Organizations are now required to go beyond standard privacy notices by using plain language, offering advanced parental controls, and implementing clear accountability measures.

One major development is the adoption of age-appropriate design codes, which require online services to prioritize children's safety through more transparent design choices. Under the updated COPPA rules, companies must also improve transparency in their Safe Harbor Programs and establish robust age verification processes. States like Tennessee and Georgia now mandate advanced parental controls, including express age verification and monitoring tools.

These transparency measures are having a tangible impact. In January 2025, the FTC reached a $20 million settlement with an app developer that had allowed children under 16 to make in-app purchases without parental consent and misled users about the associated costs.

New York's SAFE Kids Act, signed into law by Governor Kathy Hochul on June 21, 2024, goes even further. It requires platforms to obtain verifiable parental consent before delivering addictive content feeds to users under 18. Additionally, the act prohibits platforms from degrading service quality or increasing prices when such feeds are restricted. Violations can lead to civil penalties of up to $5,000 per instance.

These changes highlight a clear trend: companies can no longer hide behind complex legal jargon or obscure privacy policies. Instead, they must actively engage with parents, ensure transparency, and enforce accountability to prioritize child safety in their digital platforms.

Using Transparency to Build Trust

Research on Transparency and Parent Trust

Studies reveal that concerns about privacy and data security are widespread among parents. For instance, 90% of parents worry about social platforms accessing personal data, while 89% are uneasy about data collection practices. Additionally, 77% of Americans distrust social media leaders to admit mistakes, and 67% feel uninformed about how their data is handled. This lack of transparency has tangible effects on businesses: 94% of organizations acknowledge that customers won’t buy from them if they doubt the safety of their personal data.

The case of Epic Games serves as a cautionary tale. The Federal Trade Commission (FTC) found the company in violation of federal law for exposing children to real-time contact risks through default voice and text settings. This resulted in a $275 million penalty and mandated privacy upgrades.

Clear communication is essential for building trust. As one industry expert explained:

"Transparency is key to building trust with parents and children. Companies should be open and honest about their data collection and use practices, and provide clear and concise information that is easy to understand."

To achieve this, businesses must simplify their language. Instead of relying on dense legal jargon, they should write terms and conditions in plain, accessible language. Additionally, offering engaging, age-appropriate explanations of privacy practices can help bridge the gap between companies and their users.

Transparency isn’t just about clear disclosures - it’s also about education. Teaching children about their privacy rights is a critical step toward fostering a safer online environment.

Teaching Children About Privacy

Helping children understand online privacy is just as important as ensuring transparency from companies. Open communication plays a vital role in guiding them toward safe digital habits. Dr. Elly Hanson, a clinical psychologist specializing in online safety, advises:

"Start by exploring what they enjoy online."

Parents can begin by asking their children open-ended questions about their online activities and engaging with the platforms their kids use. This approach not only helps parents stay informed but also creates opportunities to identify potential risks together. For example, exploring apps and websites alongside children can offer insights into their digital habits while reinforcing lessons about what personal information should never be shared.

Consistent dialogue is key. By regularly checking in with their children about their online experiences, parents can normalize discussions about digital safety. It’s important to remind kids that they can always turn to a trusted adult, no matter what they encounter online. For children who may struggle to express themselves verbally, creative outlets like drawing or writing can provide alternative ways to share their thoughts and feelings.

Involving teenagers in decisions about their online privacy is another effective strategy. Respecting their independence while encouraging them to think critically about what they post or share online fosters responsibility and self-awareness. This collaborative approach equips young people to make more thoughtful decisions in the digital space.

Technology can also play a supportive role in this educational process. Tools like Guardii offer AI-driven protection that prioritizes transparency. By monitoring harmful content without compromising privacy, these platforms help parents and children stay informed about safety measures while maintaining trust and open communication within families.

Technology Solutions for Child Data Privacy

AI-Based Protection Tools Overview

Artificial intelligence is playing a growing role in keeping children safe online while maintaining strict data privacy standards. These AI tools actively monitor digital interactions, identifying potential risks like cyberbullying or predatory behavior before they escalate. Studies show that such technologies can automatically detect problematic communications within gaming platforms and social networks, providing parents with actionable recommendations to address these issues.

However, human oversight remains essential. AI systems can sometimes misinterpret context, so combining their capabilities with human judgment ensures that false alarms are minimized, and real threats are handled appropriately. For these tools to succeed, they must operate within a framework of strong data protection practices, such as minimal data collection, advanced encryption, and clear parental consent.

Recent incidents highlight the critical need for secure platforms. In January 2024, the Toronto District School Board's PowerSchool system suffered a breach, exposing decades of sensitive personal data. Similarly, in December 2024, Character.ai faced an internal error that revealed usernames, voice recordings, and chat logs. These breaches emphasize the importance of choosing platforms with rigorous security measures. Looking ahead, AI-driven child safety solutions are evolving to not only shield children from harm but also teach them safe online habits and responsible digital behavior.

This forward momentum is paving the way for tools like Guardii, which combine AI technology with human oversight to create safer digital spaces for children.

Guardii's Approach to Child Safety

Guardii stands out as an example of a thoughtful approach to online child safety, blending advanced AI with clear, transparent protocols. The platform prioritizes both robust protection and respect for privacy. With real-time analysis, Guardii can detect and isolate harmful content, flagging it for parental or even law enforcement review when necessary.

Unlike basic keyword filters, Guardii’s smart filtering capabilities evaluate context, allowing it to identify genuinely harmful material while avoiding unnecessary disruptions to normal conversations. The platform also adapts to a child’s age, offering more stringent protections for younger users and gradually granting more independence as they grow.

Guardii operates 24/7, blocking threats in real time and notifying parents only when serious risks are identified. This approach reduces notification fatigue, ensuring parents stay informed without feeling overwhelmed. Aligned with modern regulations, Guardii emphasizes clear parental consent and transparency. Its privacy-focused dashboard provides essential safety updates while respecting a child’s autonomy. Additionally, its reporting tools preserve evidence for serious incidents that may require escalation.

Currently, Guardii is trusted by over 1,107 parents across 14 countries, safeguarding 2,657 children worldwide. Parents like Sarah K. have shared their satisfaction with the platform:

"As a parent of two pre-teens, I was constantly worried about their online interactions. Since using Guardii, I can finally sleep easy knowing their conversations are protected 24/7. The peace of mind is invaluable."

With an easy setup across major platforms, Guardii ensures that families everywhere can access comprehensive and effective digital protection.

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Challenges and Best Practices for Transparency

Balancing Privacy, Safety, and Legal Requirements

Protecting children's data while maintaining transparency is a delicate balancing act, but it's essential for ensuring online safety. Organizations face a maze of challenges as they work to shield children from harm, respect privacy rights, and meet legal obligations. In 2022 alone, the CyberTipline received 32 million reports of suspected child sexual exploitation, with 99.5% related to suspected child sexual abuse material.

One major hurdle lies in age verification systems. While these tools aim to safeguard children, they often spark concerns about their accuracy, fairness, and privacy. For instance, research shows that 7% of Americans lack government-issued IDs, with this number disproportionately higher among lower-income, Black, Hispanic communities, and young adults. If age verification measures are too rigid, they risk excluding vulnerable groups from accessing legitimate online services.

The regulatory environment adds another layer of complexity. As Ash Johnson from ITIF points out:

"Protecting children from online harms requires a careful balance between ensuring safety and safeguarding free speech, user privacy, and parents' rights."

Organizations must navigate conflicting regulations while addressing evolving threats. For example, new child safety laws often require transparency, but these requirements can clash with privacy protections under laws like HIPAA and FERPA. At the same time, measures designed to protect children can sometimes infringe on their rights to privacy and free expression. Striking the right balance means respecting children's growing independence while implementing safeguards that are appropriate for their age.

These challenges highlight the importance of clear, thoughtful strategies. To tackle these complexities, organizations need to adopt effective best practices.

Best Practices for Organizations

Despite these challenges, organizations can build trust and maintain strong privacy protections by adopting a proactive and comprehensive approach.

First, creating clear, easy-to-understand privacy policies is essential. These policies should outline how data is collected, used, and shared - both for parents and in ways that children can understand. The FTC requires companies to obtain "verifiable parental consent" before collecting data from children under 13. To meet this requirement, businesses can use methods like consent forms, credit card verification, or government-issued IDs to ensure parental approval is explicit and secure.

Another key practice is data minimization. By collecting only the data necessary for a child to use a service, organizations reduce privacy risks and make their data practices easier to explain. When parents and children understand why data is collected and how it will be used, trust follows naturally.

Transparency reports are another powerful tool. These reports can share details about safety interventions, data requests, and compliance efforts, helping to build ongoing trust. User-friendly dashboards can also provide real-time safety updates, empowering parents and children to make informed decisions without constant monitoring.

The financial consequences of non-compliance are steep. For example, the FTC can impose fines of up to $42,530 per violation of COPPA, and in 2022, Epic Games paid a $275 million penalty for COPPA violations. These cases emphasize why having a thorough compliance program is critical.

To protect data, organizations should implement strong measures like encryption, strict access controls, secure disposal practices, and regular audits. Heidi Ombisa Skallet from the Center for Advanced Studies in Child Welfare underscores this balance:

"Transparency/accountability and privacy rights, particularly those of children, should require equal consideration in our calls for systemic reform. It is important to strike a balance between the two concepts, rather than sacrifice one for the other."

Child Rights Impact Assessments offer a structured way to identify risks and design solutions early on. These assessments help organizations protect privacy while creating positive online experiences for young users.

Finally, collaboration is key. Engaging with parents, children, privacy advocates, and regulators ensures that privacy programs remain responsive and inclusive. Regular communication with stakeholders helps organizations address emerging concerns and builds trust in their commitment to child data privacy and transparency.

Privacy Legislation Series: Children's Privacy

Conclusion: The Future of Child Data Privacy and Transparency

Child data privacy is undergoing a significant transformation, shaped by advancements in technology, changes in regulations, and a growing understanding of online risks. States are rolling out more comprehensive frameworks aimed at enhancing safety and transparency, paving the way for stricter enforcement and innovative tools to protect children's data.

As discussed earlier, regulatory updates and enforcement actions are redefining data protection standards. A prime example is the FTC's 2025 COPPA updates, which address modern data collection practices. FTC Chair Lina M. Khan emphasized the importance of these changes:

"The updated COPPA rule strengthens key protections for kids' privacy online. By requiring parents to opt in to targeted advertising practices, this final rule prohibits platforms and service providers from sharing and monetizing children's data without active permission. The FTC is using all its tools to keep kids safe online."

Meanwhile, technology is stepping up to meet these regulatory demands. AI tools like Guardii demonstrate how advanced monitoring can protect children while maintaining trust and privacy.

Key Points for Parents and Organizations

The intersection of new policies and emerging technologies is reshaping child data privacy. Moving forward, collaboration from all parties - parents, organizations, and regulators - is crucial. For businesses, this means prioritizing proactive compliance and transparency. For parents, it highlights the need for better tools and information to guide their children's online experiences. This is especially important as surveys show that 90% of parents worry about social media platforms accessing their personal information.

To adapt, organizations should focus on practices like age verification, minimizing data collection, and providing clear disclosures about how data is used and shared. These steps are critical, especially as penalties for violations become more severe.

However, the fragmented nature of privacy laws across federal and state levels complicates efforts. Amber Thomson, a partner at Mayer Brown specializing in cybersecurity and data privacy, explains:

"The current legal landscape aiming to protect children's data and online privacy is a complex patchwork of federal and state laws, each with distinct approaches and limitations."

Emerging technologies also introduce new risks. AI chatbots, for instance, could pose threats to children and may soon face tighter regulations. Similarly, IoT devices expand the points of data collection, demanding careful oversight. Staying informed about these developments and maintaining open communication with stakeholders will be essential for organizations.

The future of child data privacy hinges on collaboration and forward-thinking solutions. Establishing consistent age standards, extending protections to include biometric data, and fostering international cooperation to create global standards are all steps in the right direction. Equally important is educating children, parents, and educators to build a culture of online safety and privacy. With 1.7 million children impacted by data breaches in 2022, the urgency for action is clear. Strengthened regulations, improved technology, and greater transparency offer the potential for a safer digital environment for children - one that balances protection with progress.

FAQs

How are recent changes to COPPA and state laws strengthening children's online data privacy?

Recent changes to COPPA and state laws are setting new standards for safeguarding children's online privacy. Starting June 23, 2025, the FTC's updated rules will enforce stricter guidelines for handling personal data from children under 13. A key requirement? Explicit parental consent must be obtained before any data is processed. These updates also take into account advancements in technology, such as AI, to ensure platforms remain compliant.

On the state level, initiatives like New York's Child Data Protection Act are stepping up by restricting data collection practices and prioritizing transparency and parental control. Together, these measures aim to make the internet a safer place for kids while building trust between families and digital platforms.

How does AI improve child data privacy while maintaining a balance between safety and respecting privacy?

AI plays a crucial role in protecting children’s data privacy by spotting harmful patterns and behaviors without tying them to specific individuals. This means children can stay safe online while their personal details remain confidential.

With advanced monitoring tools, AI can flag risks such as predatory actions or harmful content as they happen, all without resorting to overly invasive surveillance. This balance helps build trust between parents and children, ensuring a safer online space while respecting privacy boundaries.

How can parents protect their children online while managing their data privacy effectively?

Parents can play an active role in protecting their children online by understanding key privacy laws like COPPA (Children's Online Privacy Protection Act) and state-level rules that require parental consent for collecting kids' data. Knowing these regulations equips parents to make smarter choices about their children's online activities and data sharing.

It's just as important to teach kids about staying safe online. Encourage them to think carefully about what they post and who they share it with. Having open, honest conversations about privacy can help kids build the skills they need to navigate the digital world responsibly.

Parents can also use tools designed to increase transparency and control over data collection. These tools not only help identify potential risks but also allow families to maintain trust and privacy while ensuring a safer online experience for children.