Following Children’s Advertising Review Unit Inquiry, Buddy AI Comes into Compliance with COPPA and CARU’s Privacy Guidelines

McLean, VA – February 26, 2025 – BBB National Programs’ Children’s Advertising Review Unit (CARU) has concluded an investigation into the Buddy AI website and app, owned and operated by AI Buddy, Inc. The investigation, initiated through CARU’s marketplace monitoring activities, sought to determine if the Buddy AI website and app complied with the Children’s Online Privacy Protection Act (COPPA) and CARU’s Self-Regulatory Guidelines for Children’s Online Privacy Protection.

The Buddy AI app is a generative AI tutor for kids under 12, creating instructional content in response to user prompts using the interactive, voice-based character Buddy the Robot. With 20 million downloads last year, it is the most popular language app for children on Google Play and one of TIME Magazine’s World’s Top EdTech Rising Stars of 2024.

Of concern to CARU was whether Buddy AI clearly and conspicuously discloses to parents/guardians, prior to use of the app by children, what personally identifiable information (PII) the app collects from children and how it uses and discloses this information. CARU was also concerned that Buddy AI collects, uses, and/or discloses PII without obtaining COPPA-required verifiable parental consent.

CARU determined that Buddy AI violated COPPA and CARU’s Privacy Guidelines by its failure to:

• Provide notice of its information collection and use practices that is clearly and understandably written, complete, and contains no unrelated, confusing, or contradictory materials.
• Make reasonable efforts, taking into account available technology, to ensure that parents/guardians receive direct notice of its practices with regard to the collection, use, or disclosure of personal information from children, including notice of any material change in the collection, use, or disclosure practices to which the parent has previously consented.
• Post a prominent and clearly labeled link to its online notice of its children’s information collection and use practices on the home or landing page or screen of its website or online service and at each area of the website or online service where personal information is collected from children.
• Obtain verifiable parental consent before collection, use, and/or disclosure of personal information from children.

During CARU’s investigation, Buddy AI addressed CARU’s concerns and made the necessary changes to the app to come into compliance with all applicable laws, regulations, and guidelines. CARU is pleased that Buddy AI took the necessary steps to come into compliance and help protect children’s online privacy.

In its advertiser’s statement, Buddy AI stated that it “appreciated the diligence with which CARU performed its investigation” and “welcome this opportunity to reaffirm our commitment to children’s privacy.”

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About Children’s Advertising Review Unit: The Children’s Advertising Review Unit (CARU), a division of BBB National Programs helps companies comply with laws and guidelines that protect children from deceptive or inappropriate advertising and ensure that, in an online environment, children’s data is collected and handled responsibly. When advertising or data collection practices are misleading, inappropriate, or inconsistent with laws and guidelines, CARU seeks change through the voluntary cooperation of companies and where relevant, enforcement action.

About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.