The Age-Appropriate Online Design Code Act aims to enhance protections for minors using online services by establishing specific requirements for "covered online services." These services must provide tools for minors to manage their online experiences, including options to limit communication, control personal data visibility, and opt out of unnecessary design features. The Act prohibits targeted advertising to minors and restricts the collection and use of their personal data, ensuring that such data is retained only as long as necessary. Additionally, it emphasizes parental involvement by requiring services to offer tools for managing privacy settings and monitoring usage, while default settings must prioritize the highest level of protection for minors.

The legislation also includes provisions to protect minors' precise geolocation information and restricts notifications during certain hours. Violations of the Act will be classified as deceptive trade practices, with civil penalties up to fifty thousand dollars per violation starting July 1, 2026, and the Attorney General is restricted from initiating actions for civil penalties until that date. Each online service must designate an officer responsible for compliance, and the Act includes a severability clause to ensure that if any part is deemed invalid, the remaining sections remain enforceable. The Act is set to become operative on January 1, 2026.