The news: The US Senate unanimously passed a bill on Thursday that would prohibit ad targeting for teens under 17, including ads based on digital activity. The bill now moves to the House of Representatives, where previous versions have been voted down.

• The Children and Teens’ Online Privacy Protection Act (COPPA) would build on current privacy laws that prevent online companies from collecting personal data for minors under 13 without parental consent.
• Websites and apps would no longer be allowed to knowingly collect personal information from users between 13 and 16 without consent.
• The bill would still permit brands to serve contextual ads based on the content of the websites and apps where they appear, rather than on users’ activity.

The trend: The legislation marks a notable step toward stricter rules in the US as global players crack down on children’s online safety.

• Multiple countries are introducing or considering laws to restrict minors’ access to social media. Australia implemented a social media ban for under 16s in December, while France and Spain are exploring similar actions. These actions remove the ability for platforms to collect data on minors used for ad targeting.
• Social media companies are under heightened pressure to comply with emerging regulations. Meta recently removed 550,000 accounts across Instagram, Facebook, and Threads that belonged to children in response to Australia’s ban.
• US laws have focused heavily on regulations like age verification, limits on targeted advertising, restrictions on addictive features, and bans on data collection for minors.
• States like Maryland and Connecticut have already passed laws banning targeted advertising for users under 17.
• These actions have widespread support. Seventy-four percent of US adults support regulations preventing the collection of children’s personal data, and 60% support regulations preventing children from being shown any ads, per CivicScience.

Implications for marketers: Social media platforms are at risk of losing access to young users’ data, making this demographic more difficult for advertisers to reach. Relying on contextual advertising is becoming increasingly essential for marketers looking to foster loyalty with consumers from a young age.

Young consumers move fluidly between digital properties. Applying contextual logic across formats and devices will help marketers reach young audiences where they spend their time without having to rely as heavily on demographic or behavioral profiles.