The bill H.365 aims to enhance consumer protection by regulating social media platforms and artificial intelligence 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 artificial intelligence, including terms like "consumer," "dark pattern," and "algorithmic discrimination." It also establishes penalties for non-compliance, including civil penalties for failing to register and provide required information.

Additionally, the bill mandates that providers take measures to protect minors using their platforms, such as configuring privacy settings and avoiding harmful design features. For artificial intelligence systems, providers must disclose interactions with consumers, obtain informed consent for data collection, and implement security measures to protect consumer data. The Attorney General is granted authority to enforce these regulations and adopt necessary rules to implement the act, which is set to take effect on July 1, 2025.