The "Kids Code Act" is designed to establish robust standards for online services to protect minors. It defines key terms such as "covered online service provider," "covered minor," and "dark pattern," and outlines the responsibilities of these providers regarding minors' personal data. The act mandates that online service providers implement the highest level of privacy settings by default for minors, restrict interactions between minors and adults unless explicitly permitted, and limit data collection to what is necessary for the service. It also prohibits targeted advertising to minors and the use of manipulative design features that could impair their decision-making.

Additionally, the bill emphasizes transparency and user control, requiring providers to offer tools for minors to manage their accounts and privacy settings. It mandates that personal data collected for age verification be deleted immediately after use and prohibits practices that could exploit minors. The act also requires providers to give parents the ability to manage their children's privacy settings, restrict financial transactions, and monitor usage time. An annual public report prepared by an independent third-party auditor detailing practices related to minors is also mandated. The attorney general will create rules for enforcement, with the act taking effect on July 1, 2026, and civil fines for violations starting January 1, 2027.