Children’s Advertising Review Unit Issues Compliance Warning on AI in Child-Directed Advertising and Data Collection
The Children’s Advertising Review Unit (CARU) of BBB National Programs has issued a compliance warning focused on the use of artificial intelligence (AI) in ads and data collection targeted at children. The organization emphasized that it will strictly enforce its Advertising and Privacy Guidelines for companies using AI in marketing and data collection aimed at children. CARU’s warning underscores the potential risks associated with AI, particularly in terms of children’s susceptibility to misleading marketing that blurs the line between reality and fiction.
CARU outlined key areas where brands leveraging AI in marketing need to proceed with caution to avoid deceiving children. It also advised companies to exercise care when employing AI in data collection involving children to ensure adherence to regulations like the Children’s Online Privacy Protection Act (COPPA) and requirements related to personal information collection, disclosure, destruction, and parental consent.
The rise in litigation related to AI concerns has been notable since 2018, with a significant increase in AI-related lawsuits filed last year alone, as reported by the Hunton Andrews Kurth LLP Emerging Technologies Tracker. With this year on track to surpass previous records for AI-related legal disputes, the importance of companies’ compliance with evolving federal and state guidelines in their use of AI cannot be overstated.
