What Happened
New Jersey implemented the Kids Code, a law that bans targeted advertising directed at minors and raises default privacy settings for children online, according to Inc. Instead of requiring users to undergo age verification, the law places the burden of verifying users’ ages on digital platforms themselves. This approach sidesteps the contentious age-verification requirements seen in other internet regulations.
Why This Matters
For credit and capital markets professionals, New Jersey’s Kids Code signals a regulatory trend toward imposing greater compliance responsibilities on digital platforms, which could increase operational costs and risk exposure for technology companies. The shift away from direct age checks to platform-based verification may influence how platforms allocate resources for compliance and privacy controls, potentially affecting their profitability and investment profiles. This development also highlights the evolving regulatory landscape around data privacy and advertising, which market participants should monitor closely as it may drive changes in platform business models and impact valuations in the digital advertising ecosystem.