COPPA (the Children's Online Privacy Protection Act) is a U.S. federal law, enforced by the Federal Trade Commission (FTC), that governs how personal information may be collected from children under the age of 13 online. It applies to operators of websites and online services that are directed to children under 13, as well as to any operator that has actual knowledge it is collecting personal information from children under 13.
What COPPA requires
Under COPPA, operators covered by the law must provide clear notice of their data practices and obtain verifiable parental consent before collecting, using, or disclosing personal information from a child under 13. Personal information under COPPA is broad and includes identifiers commonly used in advertising, such as persistent identifiers and device IDs used to serve targeted ads.
Why COPPA matters for programmatic advertising
In a programmatic advertising context, COPPA is significant because much of the ecosystem relies on identifiers and behavioral data that COPPA restricts for children under 13. Content that is directed to children therefore cannot be monetized through standard programmatic demand that depends on this data.
The FTC uses a multi-factor test to determine whether content is "child-directed," considering subject matter, visual and audio content, use of child-oriented characters or celebrities, language complexity, the age of models, the presence of children, audience data, and how the service markets itself.
For how COPPA applies specifically to inventory on the Sovrn Ad Exchange, see Does Sovrn monetize on child-directed content?
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