The Vermont Age-Appropriate Design Code Act, introduced as bill S.69, establishes regulations for online services and products that are likely to be accessed by minors. It includes definitions for key terms such as "covered business," which refers to entities operating in Vermont that generate revenue from online services for minors, and "personal data," which pertains to information linked to identifiable individuals. The bill emphasizes the protection of minors' data and outlines the responsibilities of businesses in handling this information, including the implementation of age assurance methods to verify user age and restrict access to certain features based on age.

Furthermore, the legislation mandates that covered businesses adhere to a minimum duty of care towards minors, ensuring their online experiences do not lead to emotional distress or compulsive use. It establishes requirements for default privacy settings that prioritize high levels of privacy for minors, including limitations on visibility and interactions with adult users. The bill also imposes transparency obligations on businesses regarding their privacy practices and prohibits certain data collection practices, such as gathering unnecessary personal data from minors. The Attorney General is empowered to enforce these provisions, with the act set to take effect on July 1, 2026, aiming to safeguard the rights and freedoms of minors in the digital landscape.