Nebraska and Vermont introduce Kids Code bills despite Big Tech backlash

Nebraska and Vermont have joined the list of U.S. states introducing stricter rules for minors accessing social media platforms and other online services with so-called Kids Code bills.

In Nebraska, Governor Jim Pillen signed a package of bills known as the Age‑Appropriate Online Design Code Act, or LB504, last week. The regulation aims to protect the personal information of children online and give parents more control over privacy and account settings.

Bill LB38, for instance, requires that social media companies verify the age of users and that minors obtain parental consent before creating their accounts. In case of violations, online service providers can receive civil penalties.

“This is a major step in freeing our children from the claws of big tech and reversing the tragic trend of depression, anxiety and suicide we have seen in our youth,” says Senator Tanya Storer, who sponsored the LB38 Bill.

Legislature in Vermont, on the other hand, passed its own Age-Appropriate Design Code (AADC) and is now waiting for Governor Phil Scott’s approval. This is the second time that the state has attempted to enact the Kids Code, with the Republican Governor vetoing a previous effort that was part of a broader privacy bill.

Among the rules set out by the bill is a requirement that the Attorney General issue rules about how businesses can use age assurance technology in a privacy-protective way. Any personal data collected for age assurance purposes must be protected by strong privacy requirements, along with a private right of action that allows users to sue for improper collection, use and disclosure of their data.

Kids Code Coalition adapts to avoid lawsuits

Inspired by a similar UK law, the Age Appropriate Design Code was first enacted in the U.S. by California in 2022, followed by Maryland last year. Similar bills were also introduced this year in Illinois and South Carolina, while parts were included in a broader New Mexico privacy bill, according to Pluribus News.

The move to regulate children’s access to online platforms, however, has created a backlash among Big Tech.

Online trade association NetChoice, representing companies such as Google, Meta, X and TikTok has been pushing back against regulations aimed at protecting minors online, arguing that restrictions on content violate the First Amendment and amount to censorship.

The industry group has challenged multiple social media age verification laws and has several First Amendment lawsuits over state-level internet regulation, including lawsuits in California and Maryland.

Last year, the California Ninth Circuit Court of Appeals ruled that one part of California’s Age-Appropriate Design Code law likely violated the First Amendment. The part in question required online companies to publicly assess and report how their content could harm minors and create plans to reduce those risks.

To avoid similar lawsuits from tech companies, civil rights organizations gathered under the Kids Code Coalition have been working on overhauling the Code. The Nebraska and Vermont bills are significantly different from those enacted in California and Maryland, according to the Electronic Privacy Information Center (EPIC), one of the organizations supporting Vermont’s efforts to re-write the bill.

The Vermont Age-Appropriate Design Code, for instance, does not require companies to assess or report on whether content may harm minors like the Californian bill. The duty of care is narrowly scoped and explicitly does not include a duty to mitigate harm stemming from content.

“For too long, Big Tech has exploited the presence of children on their platforms to turn a profit while ignoring the privacy and safety risks their design choices cause kids,” says Megan Iorio, senior counsel at EPIC. “The Vermont Age-Appropriate Design Code effectively mitigates these privacy and safety risks and does so in a way that Big Tech’s lawyers won’t be able to easily overturn in court.”

Article Topics

age verification  |  biometric age estimation  |  children  |  legislation  |  Nebraska  |  Netchoice  |  social media  |  United States  |  Vermont