The Age-Appropriate Online Design Code Act aims to enhance protections for minors using online services by establishing clear definitions for terms such as "covered online service," "child," and "personal data." The bill mandates that these services provide tools for minors to manage their online experiences, including options to limit communication, control personal data visibility, and restrict in-game purchases. It also requires that only the minimum necessary personal data be collected and prohibits targeted advertising to minors. Parental involvement is emphasized, with provisions ensuring parents have access to tools for protecting their children, including default-enabled privacy settings and notifications when parental controls are active.

Additionally, the bill prohibits covered online services from advertising prohibited products, such as narcotics and alcohol, to minors and from using deceptive practices that undermine minors' autonomy. Violations will be classified as deceptive trade practices, with civil penalties not exceeding fifty thousand dollars per violation starting July 1, 2026. Each online service must designate an officer responsible for compliance with the Act, which will take effect on January 1, 2026. Overall, the Act seeks to create a safer online environment for minors by imposing stricter regulations on how online services manage the data and experiences of young users.