February 18: State AGs ramp up privacy enforcement as COPPA nears

On 18 February, we see data privacy regulations tighten in the United States as state attorneys general step up actions ahead of the 22 April COPPA compliance deadline. Strict state laws, including Maryland’s MODPA and Rhode Island’s no‑cure approach, now move into active enforcement. For Australian portfolios with exposure to ad‑tech, gaming, health media, and data brokers, we expect higher compliance costs and disclosure updates. We will track how data privacy regulations change guidance, margins, and legal reserves in 1H 2026.

Why US privacy enforcement matters for Australia

The 22 April COPPA compliance deadline focuses attention on child data, in‑app consent, and ad targeting. State attorneys general are increasing probes and settlements across a patchwork of US state privacy laws. Recent legal analyses show more states finalising rules and moving to penalties, which raises cross‑border risk for Australian firms with US users source.

We see near‑term legal and cost risk for ad‑tech, gaming, health media, and data brokers. Australian companies that collect minors’ data, sensitive health data, or location data will need tighter controls to meet data privacy regulations. Expect updates to privacy notices, consent flows, and vendor contracts. Watch for slower product rollouts as teams prioritise audits, retention limits, and appeal processes.

Key laws to watch in 2026

Maryland MODPA enforcement targets sensitive data, youth protections, and limits on targeted advertising. Companies must justify data collection and apply strong data minimisation. We expect firms to expand data maps, age‑gating, and opt‑out signals. For investors, Maryland MODPA enforcement may lift operating costs in 1H 2026 and increase the chance of consent orders if controls lag data privacy regulations.

Rhode Island’s privacy law includes no cure period before enforcement, which can speed penalties for violations. This raises stakes for firms that rely on ad signals and data brokers. Global teams report that US state privacy laws already complicate compliance design and testing across markets source. Australian issuers should prepare faster remediation playbooks under data privacy regulations.

Investor checklist and signals

Scan risk factors for the COPPA compliance deadline, MODPA, and Rhode Island exposure. Look for new privacy KPIs, higher compliance OPEX, and any capitalised platform rebuilds. Check revenue mix from youth audiences or health data. Note references to state attorneys general inquiries. We expect clearer timelines, internal audit findings, and governance changes tied to data privacy regulations.

We suggest asking management about US user counts, age‑screening accuracy, and deletion timelines. Request evidence of vendor audits and opt‑out signal handling. Run scenarios for enforcement actions and service disruptions. Consider reserve adequacy and insurance coverage. Portfolios with clear incident response, board oversight, and quarterly privacy testing should manage data privacy regulations with less earnings volatility.

Final Thoughts

US enforcement is rising as the 22 April COPPA date nears, while tougher state rules like Maryland’s MODPA and Rhode Island’s no‑cure model create faster legal exposure. For Australian investors, the path is simple. Focus on issuers with strong privacy governance, clean data maps, and tested consent flows. Review disclosures for new compliance spending, youth protections, and inquiry updates. Ask for timelines to retire high‑risk trackers and to verify opt‑outs. Diversify revenue away from sensitive segments and confirm contingency plans with key ad‑tech and data vendors. Firms that plan early for data privacy regulations should defend margins and reduce regulatory downside in 2026.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.