The digital gaming landscape has evolved into a dynamic ecosystem that integrates entertainment, education, and social interaction. As children comprise a significant portion of the gaming audience, parental controls and compliance with regulatory frameworks such as the Children’s Online Privacy Protection Act (COPPA) have become paramount concerns for developers, operators, and parents alike.

1. Understanding COPPA and its key provisions

COPPA establishes stringent requirements for operators of websites and online services directed at children under 13 years of age. This age threshold was chosen because it aligns with the age at which children are generally deemed capable of providing informed consent under U.S. data protection laws. This threshold also reflects international standards and societal views on children’s cognitive and decision-making development, emphasizing the importance of parental involvement in data privacy decisions for younger audiences. Key provisions include the necessity for clear privacy policies, obtaining verifiable parental consent before collecting personal information, and allowing parents to review and delete their children’s data. As noted in FTC v. Yelp, Inc., “verifiable parental consent is the cornerstone of COPPA compliance, ensuring parents can control the personal information companies collect about their children.” These measures are intended to ensure that children’s personal information remains protected and that parents maintain control over their children’s digital presence.

2. Recent high-profile enforcement actions

Recent enforcement actions have underscored the importance of strict adherence to COPPA regulations, particularly as the gaming industry continues to face heightened regulatory scrutiny in response to evolving digital threats and growing concerns over children’s data privacy. One notable example is the high-profile case involving FTC v. Epic Games, Inc. The company agreed to a $520 million settlement with the Federal Trade Commission (FTC) for alleged violations, including failing to obtain parental consent before collecting personal data from children and using deceptive practices that led to unauthorized in-game purchases by minors. This case has prompted many companies in the gaming sector to reassess their data collection practices and implement more transparent parental consent mechanisms. Industry analysts have noted that the settlement “set a new benchmark for compliance expectations,” encouraging developers to prioritize ethical game design that supports informed parental decision-making. As part of the settlement, the FTC emphasized that “deceptive design choices that undermine parental consent will not be tolerated.” Another significant case, FTC v. miHoYo Limited, involved the developer of the popular video game Genshin Impact. The company agreed to a $20 million settlement for alleged COPPA violations. The allegations included failing to obtain parental consent for in-game purchases made by children under 16. As part of the settlement, the company was required to implement robust measures to prevent unauthorized transactions by minors, including a ban on selling loot boxes to teens under 16 without parental consent. The FTC’s action in this case highlights the evolving interpretation of COPPA's applicability, particularly as it applies to children aged 14-16, where emerging concerns about data protection and in-game monetization practices have led regulators to extend protections. Beyond these cases, enforcement trends indicate a growing scrutiny of monetization strategies targeting children. Companies that rely heavily on microtransactions or data-driven personalized advertising should be particularly vigilant about compliance.

3. Amendments to COPPA and their implications

In January 2025, the Federal Trade Commission (FTC) finalized significant amendments to the COPPA Rule, enhancing protections for children’s personal information and updating compliance obligations for operators. These revisions align with the Commission’s authority under 15 U.S.C. § 6502 to safeguard children’s privacy in the evolving digital landscape. Key updates include expanded disclosure requirements for data collection practices, more rigorous standards for obtaining verifiable parental consent and enhanced obligations for securing children’s personal information. The amendments also introduce restrictions on targeted advertising directed at minors and strengthen parental rights regarding access to and deletion of their children’s data. By focusing on transparency and limiting the commercial exploitation of children's online behavior, the changes underscore the FTC’s commitment to ensuring a safer and more accountable digital environment for young users.

4. Comparative analysis: Lessons from international jurisdictions

While COPPA remains a cornerstone of U.S. regulatory efforts, international jurisdictions have adopted similar or even more stringent measures to protect children online. For instance, the European Union's General Data Protection Regulation (GDPR) includes provisions specific to children's data, requiring parental consent for data processing activities involving minors under 16. Article 8 of the GDPR explicitly states, “Member States may provide by law for a lower age, provided that such lower age is not below 13 years.” The United Kingdom’s Age Appropriate Design Code (also known as the Children’s Code) mandates that online services prioritize the best interests of child users. These international frameworks offer valuable lessons for U.S.-based gaming companies, particularly as they expand their reach into global markets. Understanding and aligning with these regulations can help companies mitigate legal risks and foster a reputation for responsible data practices. For instance, companies that have adopted international frameworks, such as GDPR or the UK’s Age Appropriate Design Code, have reported improved customer trust, streamlined regulatory compliance processes, and a competitive advantage in global markets. These benefits underscore the strategic value of prioritizing data protection and transparency in digital operations.

5. The role of Safe Harbor programs

FTC-approved Safe Harbor programs, such as PRIVO, serve as critical compliance mechanisms to help developers and operators meet the rigorous requirements of the COPPA. Under 16 C.F.R. § 312.11, the FTC is authorized to approve such Safe Harbor programs to provide industry-specific guidelines that align with COPPA while allowing for operational flexibility. As emphasized by PRIVO’s CEO, the program's mission is to “empower businesses to prioritize children's privacy while navigating complex regulatory landscapes.” Achieving PRIVO certification not only demonstrates a company’s adherence to child privacy best practices but also signals a strong commitment to data protection, thereby fostering trust with parents and guardians while promoting a safer and more compliant digital environment.

6. Looking ahead: The future of child privacy in gaming

As digital gaming evolves, regulatory frameworks will likely adapt to address emerging technologies and business models. Companies proactively embracing privacy-by-design principles and staying ahead of regulatory changes will be better positioned to succeed in this dynamic environment. Compliance with COPPA and similar regulations is not just about avoiding penalties - it’s about creating a gaming ecosystem that prioritizes the safety and well-being of its youngest players. At Xsolla, we are committed to safeguarding players’ security while providing transparency and control for parents. To learn more about our robust safety measures and how we prioritize compliance, visit Parental Controls. If you’re a developer looking to partner with us, don't forget to set up your Publisher Account and join us in creating a safer gaming environment for all. Authored by Mariya Oniskiv, Legal Counsel at Xsolla