By Kate O’Loughlin

The fact that kids have migrated from linear to connected TV is no longer the headline—streaming is now the norm for Gen Alpha. What is news is that the enforcement of digital privacy laws is catching up with young families’ new consumption behaviors. 

The Michigan Attorney General recently alleged that Roku violated the Children’s Online Privacy Protection Act (COPPA) and the Michigan Consumer Protection Act by collecting and sharing children’s personal information without obtaining parental consent. 

The heart of the lawsuit is that Roku’s user accounts didn’t differentiate adults from kids, and therefore the platform had a one-size-fits-all approach to data privacy. The AG alleges that kids’ personal data as defined by COPPA—including locations, voice recordings (through the Roku remote control), IP addresses and browsing histories—was collected and then shared with third parties like Comscore, Future Today and a list of other adtech companies. 

But if the Roku device was owned and accessed by an adult logging in, then how can the Michigan AG assert a COPPA violation? It’s because COPPA applies whenever the digital content being consumed primarily appeals to children. It doesn’t matter if a parent is present or has logged into the device—if the content is for kids, so are the rules.

You might be asking what kind of content meets the “primarily appealing to children” definition. The threshold is: “You know it, when you see it.” Content is classified as child-directed for any single or combined reason including the subject matter (e.g. cartoons, kids games, toys, characters), the visual content (animation style, bright colors, childlike themes), the language used (simple, child-friendly vocabulary), etc. 

Many companies are pursuing co-viewing (or co-gaming) strategies for their Connected TV (CTV) media businesses to drive engagement, content and monetization. If you’re a kids IP owner or a marketer of products for the family, there’s significant value in creating content or advertising in media they enjoy together. SuperAwesome’s research has found that family conversations started while co-viewing can increase the likelihood of purchase by around 30% compared to individual viewing. 

But this lawsuit underscores a crucial point: Having a co-viewing or whole-family intention doesn’t exempt anyone in the media chain from COPPA regulations. This is significant for the kids media and entertainment industries because the data collection and sharing practices that underpin ad-driven models on streaming platforms can’t be applied to children’s content. Instead, the advertising infrastructure must be specialized and compliant.

Is the lesson here that companies engaging with kids & family audiences should back away from CTV? No. And that’s really not even an option, given families’ consumption patterns. Rather, it’s that there can’t be personal data collection by any party involved in the publishing, buying or selling of child-directed content. And failure to adhere to this restriction risks legal repercussions like those Roku is facing, but it also erodes consumer trust.

A further lesson is about the range of enforcers. The absence of robust FTC enforcement has led to individual state attorney generals taking matters into their own hands. More states are likely to follow, increasing the risk of legal action for non-compliant practices. 

The digital media landscape is ever-evolving, and with it, the challenges of protecting children’s data privacy. Advertising revenue is vital to streaming platforms and content owners, but the regulators and enforcers are clear that it shouldn’t come at the expense of children’s privacy. By understanding and adhering to COPPA, partnering with responsible vendors, and prioritizing transparency, the industry can navigate the complexities of the CTV landscape and build a sustainable future for kids content.