This bill seeks to enhance the privacy and data management of children under 18 in New Jersey by imposing specific requirements on social media platforms. It mandates that these platforms conduct a Data Protection Impact Assessment before launching any new online service, product, or feature that may be accessed by children. The assessment must identify potential risks to children's privacy and well-being, including exposure to harmful content and the implications of algorithms and targeted advertising. Additionally, the bill prohibits platforms from using children's personal information in harmful ways, profiling children by default, or retaining unnecessary personal information without a compelling justification.

To ensure compliance with these regulations, the bill establishes the New Jersey Children's Data Protection Commission, which will consist of nine members with expertise in children's data privacy. This commission will review Data Protection Impact Assessments, provide recommendations on best practices, and report its findings to the Governor and Legislature annually. The bill also outlines penalties for non-compliance, including civil penalties of up to $2,500 for negligent violations and $7,500 for intentional violations per affected child, enforceable by the Attorney General. The act is set to take effect 24 months after its enactment.