The rules around children's data just changed twice in one year. An updated FTC rule took effect in April 2026, and the US House passed the KIDS Act — which folds in COPPA 2.0 — in June 2026. Here's what's actually new, and what to check before buying an AI toy.
What changed in the FTC's April 2026 COPPA rule?
The FTC's amended rule, effective April 22, 2026, added biometric identifiers — voiceprints, face scans, fingerprints — to the list of protected children's data. Companies now need separate, specific parental consent before sharing a child's data with advertisers or using it to train AI systems, and indefinite data retention is banned.
For a voice-based AI companion for kids, that voiceprint provision matters directly: any toy that captures a child's voice now falls squarely under the stricter rule, whether or not it was covered before.
Is COPPA 2.0 law yet?
Not quite. The Senate passed the Children and Teens' Online Privacy and Protection Act (COPPA 2.0) by unanimous consent on March 5, 2026, and its provisions were merged into the broader KIDS Act. The House passed that bill 267–117 on June 29, 2026. It still needs reconciliation and a presidential signature before it's binding — but the direction of travel is clear, and the FTC is already enforcing the 2025/2026 rule amendments in the meantime.
What would COPPA 2.0 add on top of the current rule?
| Area | Current FTC rule (2026) | COPPA 2.0 / KIDS Act (pending) |
|---|---|---|
| Biometric data | Voiceprints, face scans now covered | Same, with stricter enforcement teeth |
| Data retention | Indefinite retention banned | Mandatory deletion timelines |
| Age coverage | Under 13 | Extends key protections toward teens |
| AI training use | Requires separate consent | Additional restrictions on AI model training |
What should parents check before buying an AI toy in 2026?
Ask three questions: does the toy have a camera, does it require a subscription that changes the privacy terms later, and can you see or delete your child's voice recordings from an app. Ted was built around these exact questions — microphone and speaker only, no camera, no ad tracking, and no data resale, with every setting managed through the parent app rather than buried in fine print.
This regulatory push follows real incidents: the Bondu breach exposed 50,000 children's chats in 2026, which is part of why regulators moved so fast. It's a similar story in Europe — see how the EU AI Act treats AI toys for comparison.
Frequently asked questions
Is COPPA 2.0 already in effect?
No. It passed the House in June 2026 but still needs Senate reconciliation and a presidential signature. The FTC's separate, already-binding rule update took effect April 22, 2026.
Does COPPA cover voice recordings from AI toys?
Yes, as of the April 2026 FTC rule, voiceprints are explicitly classified as biometric data requiring separate parental consent.
What happens if a toy company doesn't comply?
The FTC can pursue enforcement action and fines under its existing authority; COPPA 2.0 would add further penalties once signed into law.
Does Ted use a child's voice to train AI models?
Ted is built on privacy-by-design principles — no camera, no ad tracking, no data resale — with settings parents control directly through the app. For full details, see the Ted&Co FAQ.
Sources: FTC Children's Privacy, Loeb & Loeb, June 2026, State of Surveillance, Toy Fair NY.