Senate Bill 978 aims to establish regulations for online services accessed by minors, focusing on the collection and use of personal data by businesses that cater to this demographic. The bill defines a "covered business" as one that operates in Wisconsin, derives most of its revenue from online services, and provides products or features likely to be accessed by individuals under 18. It prohibits these businesses from collecting, selling, or retaining personal data of minors unless necessary for the service being used, and restricts the use of such data for purposes other than those for which it was collected. Additionally, the bill mandates that businesses implement age assurance methods that limit data collection to what is strictly necessary and requires the deletion of any personal data collected for age assurance once the user's age is determined.

The legislation also emphasizes the importance of privacy settings for minors, requiring that default settings be configured to the highest level of privacy. This includes restrictions on account visibility, messaging, and location sharing, as well as the prohibition of prompting minors to lower their privacy settings. Furthermore, the bill mandates that covered businesses provide clear information about their terms of service, privacy policies, and any algorithmic recommendation systems used. Violations of these provisions would be considered unfair trade practices, allowing the Department of Justice to investigate and take action against non-compliant businesses.