New Jersey Kids Code Avoids Age Checks, Targets Platforms

New Jersey's new Kids Code law, enacted to protect minors online, eschews direct age verification requirements, instead placing the onus of compliance on digital platforms. This legislative approach aims to curb the pervasive issue of targeted advertising directed at children and to enhance online privacy defaults for young users. The law, which took effect on September 1, 2024, specifically prohibits online services from targeting advertisements to individuals under the age of 18 without explicit consent from a parent or guardian. This prohibition extends to the collection and use of personal data for such advertising purposes.

The Kids Code mandates that online services must implement robust privacy settings by default for users under 18. These default settings are designed to limit the visibility of user-generated content and restrict the collection and sharing of personal information. Platforms are required to provide clear and conspicuous notice to users and their parents about their data practices and to offer mechanisms for opting out of certain data collection and sharing activities. The law also grants minors the right to request the deletion of their personal information and to prevent the sale of that information.

Unlike some other recent legislative efforts concerning online child protection, such as those in California or Utah, New Jersey's law deliberately sidesteps the contentious and technically challenging requirement for platforms to verify the age of their users. Proponents of the Kids Code argue that mandatory age verification systems are often easily circumvented and can pose significant privacy risks themselves. By focusing on the prohibition of targeted advertising and the strengthening of privacy defaults, the law aims to achieve its protective goals without imposing the same compliance burdens and potential privacy infringements associated with age verification mandates.

The legislation targets a broad range of online services that are likely to be accessed by minors, including social media platforms, online games, and websites with interactive features. The New Jersey Division of Consumer Affairs is tasked with enforcing the law, and violations can result in significant penalties. Companies found to be in breach of the Kids Code may face civil penalties of up to $10,000 for the first violation and up to $25,000 for subsequent violations. This enforcement mechanism underscores the state's commitment to ensuring that online platforms take their responsibilities towards protecting minors seriously. The law's emphasis on platform accountability reflects a growing trend in digital regulation, where the responsibility for safeguarding users is increasingly being placed on the companies that provide online services.