The bill would also ban the sale of connected toys and other child-oriented devices unless they can meet "robust" security standards, and would require that those devices have a privacy "dashboard" on their packaging that shows how they collect, use and secure data. Companies might also have a tougher time feigning ignorance of underage users: the amendment would change COPPA's requirement for "actual knowledge" of under-13 use to "constructive knowledge."

If the bill becomes law, it would give companies a year to implement many of the changes, including a requirement to clearly disclose their data collection.

The amendment could have significant ramifications for tech companies. App and website creators would have to create staggered data collection policies, and may need stricter age enforcement verification. You might also see fewer companies making child-focused connected devices, at least not without a better understanding of the risks involved.