The proposed bill H.365 aims to enhance consumer protection by regulating providers of social media platforms and artificial intelligence systems in Vermont. It requires these providers to register annually with the Secretary of State, pay a registration fee of $100, and agree to product safety and privacy terms. The bill outlines specific definitions related to social media and artificial intelligence, including terms like "consumer," "dark pattern," and "algorithmic discrimination." It also establishes the authority of the Attorney General to enforce compliance and impose penalties for non-registration, which can amount to $50 per day, capped at $10,000 per year.

Additionally, the bill includes provisions to protect minors using social media platforms, mandating that providers implement high privacy settings and avoid harmful design features. For artificial intelligence systems, the bill requires providers to disclose the nature of their systems to consumers, obtain informed consent for data collection, and ensure reasonable security measures are in place. The act is set to take effect on July 1, 2025, and aims to safeguard the health and safety of Vermonters while promoting accountability among technology providers.