California enacts key privacy and security restrictions on tech industry

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The bill requires online services to provide additional safeguards for users under the age of 18. These include using the highest possible privacy settings by default in most cases and giving minors a clear signal when their location is being monitored (e.g., by a parent or guardian).

The state Senate on Monday unanimously passed the California Age-Appropriate Design Code Act, a bill that would require online platforms to proactively consider how their product design could put minors at risk, including through algorithms and targeted advertising. The California State Assembly had previously passed a version of the bill that still needs to be signed by Democratic Governor Gavin Newsom to become law. If signed, the bill would not take effect until 2024.

It also seeks to prohibit the use of so-called dark patterns – essentially design tricks intended to steer users toward a particular choice – that would entice minors to disclose personal information that is not necessary to provide the service.

The California legislation could become the basis for other state or federal design codes, or even encourage platforms to proactively change their services across the country, in part due to the difficulty of applying different standards depending on location.

The bill is reminiscent of a recent design code passed in the U.K. that attempts to establish ground rules for protecting children online. Federal lawmakers such as Senator Ed Markey (Massachusetts) have praised the UK design code and proposed adopting its principles in the US.

The idea of requiring design protections became a particularly hot topic in Congress late last year when former Facebook employee Frances Haugen testified about internal documents she uncovered that showed the company knew how its products could harm children’s mental health. Facebook has said it is working hard to protect user safety and that the documents Haugen revealed lack crucial context.

Groups that advocate for stronger Internet safety protections for children, such as Common Sense Media, praised the Senate’s passage of the bill.

In a statement, board chairman Jim Steyer called the bill “a monumental step toward protecting California children online.”

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