Neuromarketing is a new field that is rapidly gaining credibility and use among advertising and marketing firms. It uses MRIs to detect changes in brain activity to reveal why consumers make the decisions they do, and what part of the brain is telling them to do so. Neuromarketing will tell a marketer what the consumer reacts to, whether it was the color of the packaging, the sound the box makes when shaken, or the idea that they will have something their co-consumers do not. It is now being used to gain insight into customers' motivations, preferences and decisions, allowing marketers to tailor the development, advertising and pricing of their products.

Due to their age and the amount of time spent online, advocates worry kids are susceptible to online manipulation by advertisers. It is known online companies gather, analyze and use data for marketing directed at children to influence their decisions. Today’s digital media uses augmented reality and virtual reality on content that reflects the interests and goals of content creators, platforms and marketers. Artificial intelligence, machine learning and other systems are used to make continuous decisions about how online content for children can be personalized to increase engagement. Advocates say branded content in various forms of multimedia, including native advertising and influencer marketing, exposes children to marketing that is inherently manipulative or purposely disguised as entertainment or other information.

Pending Legislation: H.R.4801 - Kids PRIVCY Act
Sponsor: Rep. Kathy Castor (FL)
Status: House Committee on Energy and Commerce
Chair: Rep. Frank Pallone (NJ)