The Digiday Podcast: What This Year’s COPPA Update Means for Marketers, with Privacy Expert Debbie Reynolds

Release Date: February 25, 2025
Hosts: Kameka McCoy and Tim Peterson
Guest: Debbie Reynolds, Founder, CEO, and Chief Data Privacy Officer at Debbie Reynolds Consulting

Introduction and Hosts' Banter

The episode kicks off with the hosts, Kameka McCoy and Tim Peterson, engaging in light-hearted conversation about their hectic weeks and personal anecdotes. This casual exchange sets an engaging tone for the episode, making listeners feel welcomed and connected.

Breaking Down the Week's Top News

1. X’s Aggressive Stance on Advertisers

The hosts delve into the recent aggressive tactics employed by X (formerly Twitter) as it pressures advertisers to increase their spending on the platform or face legal action.

• Kameka McCoy [03:01]: "X has said, advertise us or we'll sue you."

• Tim Peterson [03:14]: Discusses how X’s strategy is influencing major holding companies like IPG and Publicis to commit to increased ad spending on the platform, raising concerns about the long-term implications for the advertising landscape.

Key Points:

• A lawyer from X threatened IPG during merger talks, demanding increased ad investment.
• Major holding companies like IPG and WPP are signing significant deals with X, reflecting the platform’s growing influence.
• The strategy raises questions about its sustainability, especially with potential political shifts affecting Elon Musk’s influence.

2. ESPN and MLB Part Ways

Next, the hosts examine ESPN's decision to drop Major League Baseball (MLB) and Formula One rights, analyzing its impact on both the sports and broadcasting industries.

• Tim Peterson [08:47]: Explains ESPN’s rationale for cutting sports rights due to declining traditional TV viewership and substantial financial commitments.

• Kameka McCoy [10:49]: Highlights MLB's reciprocal decision to sever ties with ESPN, citing inadequate promotion of baseball across ESPN’s platforms.

Key Points:

• ESPN is dropping MLB rights estimated at $1.65 billion over three years and Formula One rights after the upcoming year.
• The move is part of a broader strategy to optimize investment amid declining traditional TV revenues.
• Potential buyers include streaming giants like Netflix, Apple, and Fox, aiming to bolster their live sports offerings.

3. Nike Partners with Skims

The final news segment explores Nike’s strategic partnership with Kim Kardashian’s athleisure brand, Skims, aiming to rejuvenate Nike’s Direct-to-Consumer (D2C) business.

• Kameka McCoy [14:37]: Discusses how Nike’s collaboration with Skims marks a significant shift in branding and market strategy.

• Tim Peterson [16:38]: Questions the partnership's long-term viability and speculates on potential acquisitions.

Key Points:

• Nike and Skims are launching a joint brand, “Nike Skims,” targeting the women’s athletic gear market.
• This partnership is a response to Nike’s lagging D2C performance, aiming to leverage Skims’ strong consumer appeal.
• The collaboration draws parallels to iconic brand partnerships like Nike and Michael Jordan, indicating Nike’s desire to regain cultural and financial momentum.

In-Depth Conversation with Debbie Reynolds

Understanding the COPPA Update

The core of the episode features an insightful discussion with Debbie Reynolds about the recent updates to the Children's Online Privacy Protection Act (COPPA) and their ramifications for marketers.

• Tim Peterson [21:07]: "What does this mean for companies? Where are the gray areas?"

• Debbie Reynolds [22:02]: "It's a big deal. People haven't really paid attention to it because there has been so much other activity in the news."

Key Points:

• COPPA Changes: In January, the FTC updated COPPA, requiring parental opt-in for advertisers targeting children with ads.
• Global Context: Reynolds highlights that other Five Eyes countries are also tightening child privacy laws, leading to a complex international regulatory environment.
• Operational Challenges: Companies must navigate the difficulty of obtaining verifiable parental consent, especially distinguishing between various age groups online.

State vs. Federal Privacy Laws

The conversation transitions to the broader U.S. privacy landscape, focusing on the tension between state and federal regulations.

• Debbie Reynolds [35:26]: "California type laws tend to give the consumer more rights, and they consider the Virginia type laws to be more business-friendly."

• Tim Peterson [41:15]: Clarifies the concept of a private right of action under laws like CCPA.

Key Points:

• Patchwork of State Laws: The U.S. has over 20 states with their own privacy laws, creating a fragmented regulatory environment.
• California vs. Virginia Models: California laws are more stringent, offering extensive consumer rights, while Virginia laws are designed to be more lenient for businesses.
• Federal Legislation Challenges: Achieving consensus on a comprehensive federal privacy law is difficult due to disagreements over preemption and private rights of action.
• Business Implications: Companies face increased complexity in compliance, often leading to internal pressures to align with multiple state standards.

Implications for Companies and Consumers

Reynolds discusses the practical impacts of these regulations on businesses and the everyday user experience.

• Tim Peterson [25:11]: "How do we comply with this new requirement?"

• Debbie Reynolds [28:33]: "It's going to create a bit more of a chilling effect and it's probably going to help with some consolidation around apps for children."

Key Points:

• Compliance Complexity: Businesses, especially smaller ones, struggle with implementing robust verification systems for parental consent.
• Consumer Experience: Parents may face friction when providing IDs or verifying consent across multiple platforms, potentially leading to reduced app usage among children.
• Data Security Concerns: The requirement to collect sensitive ID information heightens the risk associated with data breaches and misuse.
• Future Outlook: Anticipated global regulatory trends may push U.S. companies to adopt more stringent privacy measures, influencing international standards.

Future of Privacy Regulation

In discussing future developments, Reynolds expresses skepticism about the likelihood of comprehensive federal privacy legislation in the near term.

• Debbie Reynolds [36:37]: "Right now, I would say no because it seems like people are more interested in other types of chaos right now."

Key Points:

• Legislative Stalemate: The current political climate shows low momentum for federal privacy laws, with ongoing disagreements over key provisions.
• State-Level Coordination: Some states are beginning to collaborate to create more standardized privacy regulations, though significant disparities remain.
• Industry Response: Businesses are increasingly adopting internal standards and contract requirements to manage privacy compliance, often outpacing governmental regulation.
• Potential Developments: While a unified federal law seems unlikely soon, ongoing state initiatives and international pressures will continue to shape the privacy landscape.

Conclusion

The episode wraps up with final thoughts from the hosts and Reynolds, emphasizing the complexity and evolving nature of privacy regulations. There is a consensus that both businesses and consumers must stay informed and adaptable in response to these changes.

• Debbie Reynolds [49:01]: "It's going to have a bit of a chilling effect and it's probably going to help with some consolidation."

• Tim Peterson [51:05]: "Well, Debbie, really appreciate you coming on. It's always really helpful talking with you."

Takeaways

1. COPPA Update Significance: The latest COPPA changes mandate stricter parental consent for advertising to children, presenting substantial compliance challenges for businesses.
2. Fragmented Privacy Landscape: The lack of a cohesive federal privacy law results in a patchwork of state regulations, complicating compliance efforts for companies operating across multiple states.
3. Operational and Consumer Impact: Enhanced privacy requirements increase operational burdens on businesses and create friction for consumers, particularly parents managing their children's online activities.
4. Industry Adaptation: In the absence of comprehensive federal legislation, businesses are taking proactive steps to align with evolving state laws and internal standards to manage privacy risks.
5. Future Trends: Anticipated global regulatory actions and state-level collaborations suggest ongoing complexity and the need for businesses to stay agile in their privacy strategies.

Notable Quotes:

• Tim Peterson [03:14]: "It's just wild. You wonder, is this the kind of thing that will lead others to other platforms to do a similar thing if they face similar boycotts?"

• Debbie Reynolds [22:02]: "It's a big deal. People haven't really paid attention to it because there has been so much other activity in the news."

• Debbie Reynolds [36:34]: "So I think, you know, so we have not seen any significant movement on the federal side around trying to create something more comprehensive in privacy."

• Debbie Reynolds [49:01]: "It's going to have a bit of a chilling effect and it's probably going to help with some consolidation."

This episode of The Digiday Podcast provides a comprehensive analysis of the updated COPPA regulations and their broader implications within the current privacy landscape. Through engaging discussion and expert insights from Debbie Reynolds, listeners gain a nuanced understanding of the challenges and future directions in digital privacy and marketing.