In the summer of 2025, New York will implement the groundbreaking Child Data Protection Act (CDPA), marking a significant step forward in the regulation of data privacy for minors. As data privacy laws continue to evolve, the CDPA stands out as one of the most stringent and child-focused regulations in the United States and follows in the steps of COPPA and FERPA regulations but at a state level vs. the usual federal regulation.
This legislation aims to ensure that children and their parents or guardians have greater control over the collection, use, and sharing of personal information related to minors. Businesses operating in or serving residents of New York must take note, as non-compliance could lead to severe penalties.
Here, we will explore the core tenets of the CDPA, its implications for businesses, comparisons to other privacy laws, and actionable steps organizations should take to prepare for this landmark regulation.
What Is the Child Data Protection Act?
The New York Child Data Protection Act is designed to safeguard the privacy of children under the age of 18 by regulating how their personal data is collected, processed, and shared. Inspired by global standards like the UK’s Age-Appropriate Design Code, the CDPA focuses on protecting children from invasive data practices that exploit their personal information for profit or other purposes.
Some of the key provisions of the CDPA include:
- Age-Appropriate Privacy Settings: Businesses must implement default privacy settings that provide a high level of protection for children, ensuring their data is not unnecessarily exposed.
- Data Minimization: Companies can only collect data that is strictly necessary for providing their services to children.
- Prohibition of Profiling: The act bans profiling practices that target minors for advertising or other purposes unless explicitly authorized by their parent or guardian.
- Parental Consent: Organizations must obtain verifiable parental consent before collecting or processing a child’s data, especially for children under 13 years old.
- Transparency Requirements: Companies must provide clear, age-appropriate notices that explain how a child’s data will be used.
These provisions collectively aim to create a safer digital ecosystem for children, addressing the unique vulnerabilities they face in an increasingly data-driven world.
How the CDPA Compares to Other Privacy Laws
While the CDPA is a major advancement in child data protection, it is not the first law to address privacy concerns for minors. Understanding how it compares to existing state and federal privacy laws can provide valuable context for businesses.
Children’s Online Privacy Protection Act (COPPA)
The federal COPPA has been in place since 1998 and serves as a baseline for protecting children under the age of 13. COPPA requires parental consent for data collection and enforces transparency around how children’s data is used. However, COPPA’s scope is narrower than the CDPA in several ways:
- Age Range: COPPA applies to children under 13, whereas the CDPA extends protection to all minors under 18.
- Design Requirements: The CDPA mandates age-appropriate design principles, a concept absent from COPPA.
- Profiling and Advertising: While COPPA addresses targeted advertising to some extent, the CDPA takes a stricter stance by outright prohibiting profiling without explicit consent.
California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA)
California’s privacy laws, including the CCPA and its successor, the CPRA, are among the most comprehensive in the country. These laws grant all consumers—including children—greater control over their personal data. However, the CDPA is more specific and restrictive when it comes to minors:
- Default Privacy Protections: The CDPA enforces privacy-by-default settings for children, whereas the CPRA relies on opt-out mechanisms.
- Parental Consent: The CDPA’s focus on parental consent is more rigorous than California’s approach.
- Focus on Children: While the CPRA includes some provisions for minors, the CDPA is exclusively designed to protect children’s data, making it more targeted in scope.
Other State Laws
Several states, including Virginia, Colorado, and Utah, have introduced privacy laws that echo the CCPA and CPRA. These laws often include provisions for minors but lack the comprehensive, child-centric approach of the CDPA. For example:
- Virginia Consumer Data Protection Act (VCDPA): Similar to California, Virginia’s law includes rights to access, delete, and opt-out of data processing but does not emphasize child-specific protections.
- Utah Consumer Privacy Act (UCPA): While offering general privacy rights, Utah’s law does not include mandates for age-appropriate design or stricter parental consent requirements.
In summary, the CDPA’s exclusive focus on children and its robust protections set it apart from other state and federal privacy laws.
Key Impacts of the CDPA on Businesses
For businesses operating in New York, the CDPA introduces significant compliance challenges. Here are some of the primary areas of impact:
- Website and App Design: Businesses will need to ensure that their websites, apps, and digital platforms incorporate child-friendly design principles, including privacy-by-default features and intuitive interfaces that align with the CDPA’s requirements.
- Data Processing Practices: Companies must audit their data collection and processing workflows to ensure they align with the principles of data minimization and purpose limitation.
- Parental Verification Mechanisms: Organizations will need to implement robust methods for verifying parental consent, which could involve integrating advanced identity verification systems.
- Employee Training: Staff who handle data or manage customer interactions must be trained to understand and comply with the CDPA’s mandates.
Failure to comply with the CDPA can lead to substantial fines, reputational damage, and potential legal action. The stakes are high, and businesses must act swiftly to ensure compliance.
A Quick Checklist for CDPA Compliance
To help businesses navigate the complexities of the CDPA, here is a simple checklist of steps to follow:
- Conduct a Data Audit: Identify all data collected from minors and assess its purpose and necessity.
- Update Privacy Policies: Ensure your privacy policies are clear, accessible, and age-appropriate.
- Implement Parental Consent Systems: Deploy technology that verifies parental or guardian consent before processing a child’s data.
- Redesign User Interfaces: Make platforms intuitive and aligned with age-appropriate design principles.
- Establish Data Minimization Practices: Limit data collection to what is absolutely essential for service delivery.
- Invest in Staff Training: Regularly train your team on the latest privacy practices and legal requirements.
By following these steps, businesses can lay the foundation for CDPA compliance and protect themselves from legal and financial risks.
Why the CDPA Matters
The Child Data Protection Act is more than just a regulatory requirement—it represents a broader societal shift toward prioritizing the rights and safety of minors in the digital realm. Children are among the most vulnerable online users, often unaware of how their personal data is collected and used. The CDPA seeks to close the gaps left by existing privacy laws, such as COPPA, by addressing modern challenges like targeted advertising and algorithmic profiling.
For parents and guardians, the CDPA provides much-needed assurance that their children’s data will not be exploited for commercial gain. For businesses, it’s an opportunity to demonstrate their commitment to ethical data practices and earn the trust of their customers.
Benefits of Compliance
While meeting the requirements of the CDPA may seem daunting, it also offers several advantages:
- Enhanced Trust: By adopting child-friendly privacy practices, businesses can build stronger relationships with families and young users.
- Reduced Risk: Compliance minimizes the risk of legal action and reputational harm.
- Competitive Advantage: Companies that prioritize privacy and ethical data practices can differentiate themselves in the marketplace.
- Alignment with Global Standards: Adhering to the CDPA positions businesses to comply with similar regulations in other jurisdictions.
Key Differences Between CDPA and Global Laws
The CDPA also draws inspiration from international standards like the UK’s Age-Appropriate Design Code and the EU’s General Data Protection Regulation (GDPR). These laws have set benchmarks for protecting minors’ data globally:
- Age-Appropriate Design Code: Similar to the CDPA, this UK regulation focuses on designing digital services that prioritize child safety. However, the CDPA’s enforcement mechanisms and scope of application are tailored specifically to the U.S. legal landscape.
- GDPR’s Protections for Minors: The GDPR includes specific provisions for children, such as higher consent standards for processing minors’ data. However, the GDPR applies broadly across all age groups, whereas the CDPA is exclusively focused on minors.
Preparing for the CDPA: Practical Tips
Businesses should take proactive steps to ensure compliance before the CDPA goes into effect. Here are some practical tips:
- Engage Legal and Compliance Experts: Work with privacy professionals to interpret the CDPA’s requirements and develop a compliance strategy.
- Leverage Technology: Use tools like consent management platforms and data minimization software to streamline compliance efforts.
- Educate Your Team: Conduct regular training sessions to ensure employees understand their responsibilities under the CDPA.
- Monitor and Adapt: Stay informed about updates to the law and adjust your practices accordingly.
How To Ensure CDPA Compliance in New York?
The New York Child Data Protection Act is set to transform how businesses handle the personal information of minors. By prioritizing transparency, consent, and child-friendly design, the CDPA aims to create a safer digital environment for young users. For businesses, compliance is not just a legal obligation but an opportunity to lead the way in ethical data practices. With the right strategies and tools in place, organizations can navigate this new regulatory landscape and build a foundation of trust with their youngest customers and their families. New York State also has privacy laws cooking that will complicate the compliance requirements even more if passed. Stay tuned to see what comes for the rest of the year and if you’d like to book a demo to have us help you automate your compliance with CDPA and other privacy laws you can book a demo below.
