The bill H.365 aims to enhance consumer protection by regulating social media platforms and artificial intelligence (AI) systems in Vermont. It requires providers of these services 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 AI, including terms like "dark pattern" and "algorithmic discrimination." It also establishes the responsibilities of providers, particularly regarding the protection of minors and the handling of personal data.

Key provisions include the requirement for providers to configure privacy settings for minors, avoid harmful design features, and limit the use of minors' personal information. Additionally, the bill mandates that AI providers disclose their data practices and obtain informed consent from consumers before data collection or sharing. Violations of these regulations can result in civil penalties, and the Attorney General is granted authority to enforce compliance through legal action. The act is set to take effect on July 1, 2025.