Why might businesses resist regulations placed by laws like COPPA?

Businesses might resist regulations like the Children's Online Privacy Protection Act (COPPA) primarily because they believe such regulations hamper customer engagement. This law imposes certain constraints on how businesses can collect and use personal data of children under the age of 13. As customer engagement often relies on personalized marketing and data-driven strategies, companies may perceive these regulations as obstacles that could limit their ability to interact with customers effectively. The requirement for parental consent and the limitations on data usage can complicate marketing efforts and slow the pace of engagement activities, making it more challenging for businesses to connect with their target audiences in a dynamic and responsive manner.

Other factors, such as fear of increased competition or a preference for self-regulation, may play a role in their resistance to regulations, but the concern over diminished customer engagement often stands out as a primary motivation for opposing such laws.