The Age-Appropriate Online Design Code Act aims to enhance protections for minors using online services by establishing clear definitions and responsibilities for these services. It requires covered online services to provide tools that allow minors to manage their privacy settings, limit communication, and control engagement with features that may promote excessive use. The Act prohibits targeted advertising to minors and restricts the collection and retention of their personal data, ensuring it is only kept as long as necessary for the specific service. Additionally, it emphasizes parental involvement by mandating tools for parents to manage their child's account settings and monitor usage, with default settings prioritizing the highest level of protection for minors.

The legislation also introduces penalties for violations, classifying them as deceptive trade practices under the Uniform Deceptive Trade Practices Act, with civil penalties capped at fifty thousand dollars per violation starting July 1, 2026. The Attorney General is restricted from initiating actions for these penalties until that date. Each covered online service must appoint a compliance officer, and all collected penalties will be directed to the State Treasurer. The Act is set to become operative on January 1, 2026, and includes a severability clause to maintain the enforceability of remaining sections if any part is deemed invalid.