Assembly Bill 1161 aims to establish regulations for online services accessed by minors, focusing on the collection and use of personal data. 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. Additionally, it restricts the use of previously collected data and mandates that businesses must not allow monitoring of minors' online activities without clear notification. The bill also imposes a duty of care on businesses to prevent emotional distress, compulsive use, or discrimination against minors.

Furthermore, the bill outlines specific requirements for age assurance processes, including limiting data collection to what is strictly necessary and ensuring that any personal data collected for age assurance is deleted immediately after determining a user's age. It mandates that default privacy settings for minors be set to the highest level of protection and prohibits businesses from prompting minors to lower these settings unless necessary for access. The Department of Justice is tasked with creating rules to enforce these provisions, and violations are classified as unfair trade practices, allowing for investigations and potential legal action.