Is age verification on the Internet in the US finally going beyond a click box? While the European Union has grappled with this issue for years with legislation that either implies or explicitly requires age verification, the US is now catching up. As such, the potential and ongoing regulatory changes have big implications for businesses, consumers, and digital identity. These regulations are complex and have various requirements across jurisdictions, making compliance an even greater challenge.
As consumers increasingly are making transactions, using social media, and connecting digitally, ensuring the safety of minors has become a high priority for legislators.
In this blog, we’ll explore the current regulatory landscape, upcoming laws, and the challenges posed by digital identity solutions, helping businesses understand the evolving environment.
The Current State of Age Verification Laws in the United States
For businesses that provide services or sell products with age restrictions (including alcohol, tobacco, gaming/gambling, and adult content, among others) , age verification is a critical compliance component.
Because there is no overarching federal law that governs age verification, states are often left to adopt their own standards. As a result, in 2024, age verification regulations in the US vary widely by state, industry, and type of service or product offered.
Several states have already been subject to age-related regulations since a pioneering age verification law from Louisiana in 2022. For example, since 2023, at least nine states have already passed laws to mandate websites that contain more than one-third of content deemed harmful to minors must implement age verification systems so that underage individuals cannot access them. Harmful content is the biggest concern of these laws. As of June 2024, 19 states have passed laws requiring age verification to access online pornography.
Not only does the lack of consistency increase compliance challenges—especially for businesses operating nationwide—efforts to pass federal privacy or age verification legislation have often been met with broader political disagreements, leading to more confusion regarding compliance.
Here are the key age verification regulations that businesses need to know:
- Children’s Online Privacy Protection Act (COPPA): COPPA was enacted in 1998 and regulates the collection of personal information from children under the age of 13. If a business targets services to children, they must obtain parental consent for data collection and provide notice of their practices. While COPPA doesn’t focus on age verification explicitly, it has fostered growing attention toward ensuring age-appropriate access to digital content. The Federal Trade Commission (FTC) enforces COPPA, and also ensures online services develop a privacy policy to detail how a child’s personal information will be used.
- State-Level Regulations: As mentioned, the list of states enacting age verification laws has increased, but not consistently. States like California have pioneered more comprehensive privacy and age verification regulations. The California Consumer Privacy Act (CCPA) and the recently passed California Age-Appropriate Design Code Act (modeled after the UK’s Age Appropriate Design Code) mandate businesses to ensure that they comply with age-appropriate design standards, particularly in services targeting minors.
Other states such as Louisiana and Utah have proposed legislation to tighten controls on adult content access by minors, requiring more robust age verification methods for users accessing certain websites. Often these laws have been challenged, as in the case of Utah.
- Industry-Specific Age Requirements: Industries like online gambling, tobacco, and alcohol sales often have stricter rules around age verification. For instance, many states mandate that online gambling platforms use third-party age verification services to prevent underage gambling. Similarly, alcohol and tobacco delivery services are required to verify age during both the online transaction and at the point of delivery.
Upcoming Age Verification Laws and Regulations in the US
The regulatory environment regarding age compliance is evolving quickly. The continued trend appears to be more stringent laws at both the federal and state levels.
- Federal Legislation for Digital Platforms: Recent Congress discussions suggest there may be bipartisan support for more comprehensive age verification laws at the federal level. This includes bills like the Kids Online Safety Act (KOSA) and the Protecting Kids on Social Media Act that propose stricter guidelines for age verification, particularly for social media companies, and would require users to offer proof of age to access certain services.
- Tighter Regulations on Adult Content: With states like Utah and Arkansas, among others, proposing regulations to require more sophisticated ag verification processes for accessing adult content, they’re not alone. What’s more, these laws could require users to verify their identity via biometrics or government-issued ID verification fi they seek to access such content.
Consumer Sentiment Regarding Age Verification and the Balance Between Privacy and Security
Businesses must also consider consumer sentiment as they implement age verification systems. Consumers, especially younger users, are increasingly wary of how much personal information they share online. While most parents support stronger protections for minors, there is growing concern about the privacy risks posed by stringent age verification systems, particularly those requiring personal data such as government IDs or biometric information.
Public opinion on the implementation of these regulations has been mixed. Consumer and consumer advocate groups worry that age verification systems may lead to overreach, including increased data collection and potential misuse of personal information. Because more stringent regulation may require sensitive data (biometrics or government-issued IDs), this concern is especially pronounced.
Users may also be wary of systems that introduce friction into their online experiences. Businesses that adopt cumbersome verification processes risk alienating customers who value a streamlined experience. At the same time, parents, advocacy groups, and regulatory bodies continue to demand safer digital environments for children. That’s why the technology utilized to comply with these regulations matters: in most cases, sacrificing user experience is a pressing concern.
How Digital Identity Factors Into Age Verification Regulations
The rise of age verification laws has highlighted a broader issue: the need for reliable and secure digital identity solutions. Here’s what businesses should keep in mind when considering digital identity solutions for age verification regulatory compliance.
- Accuracy of Age Verification: Many businesses struggle to implement accurate age verification without requiring invasive data collection. Traditional methods, such as entering a date of birth, are easily bypassed. As a result, businesses are exploring technologies like AI-driven age estimation, document scanning, and facial recognition to ensure their processes are accurate.
- Third-Party Identity Providers: Third-party identity verification services have emerged as a solution, offering businesses a way to outsource compliance. These providers use advanced algorithms and databases to verify identities and age, but businesses must ensure that these third parties comply with privacy laws and maintain robust data protection standards.
- The Role of Decentralized Digital Identity and Digital Identity Gaps: Decentralized identity solutions, such as blockchain-based digital identities, are gaining attention as a possible solution. These systems allow users to verify their age without disclosing unnecessary personal information. Unlike many countries, the US does not have a national digital identification system, which complicates rolling out consistent age verification methods. What’s more, decentralized solutions are still in their infancy, and widespread adoption may be years away.
Conclusion: A Proactive Approach for Businesses to Comply with Age Verification Regulations
The future of age verification is evolving rapidly, with increased scrutiny from regulators and demands from consumers for both protection and privacy. For businesses, staying ahead of the curve requires more than just checking a compliance box. It means adopting a proactive strategy that balances regulatory requirements, consumer sentiment, and the challenges of implementing secure digital identity systems.