Senate Bill No. 2881 aims to enhance the safety and privacy of minor users on digital services by establishing specific access and communication settings for their accounts. The bill introduces Section 509.0525 to the Business & Commerce Code, which mandates that digital service providers create default settings for accounts of known minors. These settings include limiting usage to one hour per day, prohibiting unsolicited communications from unknown users, restricting comments and reactions on the minor's content, hiding the minor's list of friends or followers, and banning the use of algorithms for content suggestion or promotion. Additionally, verified parents are granted the authority to modify these settings using parental tools outlined in Section 509.054.

The bill also amends existing provisions regarding the use of algorithms by digital service providers. It specifies that, except where prohibited under the new Section 509.0525, providers must ensure that their algorithms do not conflict with their responsibilities towards known minors. Furthermore, it requires transparency in how algorithms are used, including the disclosure of information regarding their operation and the personal data utilized. The new regulations will apply to accounts created after the bill's effective date, with a compliance deadline for existing accounts set for January 1, 2026. The act is set to take effect on September 1, 2025.