The "Kids Code Act" is designed to enhance the protection of minors in online environments by establishing comprehensive standards for online service providers. It defines key terms such as "covered online service provider," "covered minor," and "dark pattern," and outlines the responsibilities these providers have regarding the personal data of minors. The act mandates that default privacy settings for minors be set to the highest level, prohibits targeted advertising to minors, and restricts the collection and use of their personal data. Additionally, it requires that any personal data collected for age verification be deleted within 60 days and that minors be informed when their precise geolocation information is being utilized.

The bill also includes provisions for civil sanctions against non-compliant providers and mandates that they offer tools for parents to manage their children's privacy settings and monitor usage. It requires annual public reports prepared by independent auditors detailing practices related to minors, and the attorney general is tasked with implementing rules to limit data practices that may lead to compulsive use by minors. Violations of the act will incur civil fines starting January 1, 2027, and the act is set to take effect on July 1, 2026, contingent upon the enactment of Senate Bill No. 759.