The societal and epistemological implications of online targeted advertising have been scrutinized by AI ethicists, legal scholars, and policymakers alike. However, the government's use of online targeting and its consequential socio-political ramifications remain under-explored from a critical socio-technical standpoint. This paper investigates the socio-political implications of governmental online targeting, using a case study of the UK government's application of such techniques for public policy objectives. We argue that this practice undermines democratic ideals, as it engenders three primary concerns -- Transparency, Privacy, and Equality -- that clash with fundamental democratic doctrines and values. To address these concerns, the paper introduces a preliminary blueprint for an AI governance framework that harmonizes governmental use of online targeting with certain democratic principles. Furthermore, we advocate for the creation of an independent, non-governmental regulatory body responsible for overseeing the process and monitoring the government's use of online targeting, a critical measure for preserving democratic values.
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