CHILDREN PRIVACY PROTECTION
The legislation introduces legal consequences for non-compliance, holding businesses accountable with civil penalties of up to $2,500 for each negligent violation and up to $7,500 for each intentional violation per affected child. With the establishment of the Children's Data Protection Working Group, the bill also emphasizes the importance of ongoing oversight and adaptation to best practices, which will be reported biennially to the General Assembly. The impact of this bill may lead to significant compliance changes within businesses targeting children, as they may need to reconsider their data management strategies to adhere to the new legal standards.
House Bill 3880, known as the Children's Privacy Protection and Parental Empowerment Act, seeks to enhance protections for children when engaging with online services, products, or features. The bill mandates that businesses must conduct a Data Protection Impact Assessment for any online offerings that could be accessed by children under 18. The aim is to identify and mitigate risks associated with data management practices that may adversely affect children. This Assessment must be completed for services available before July 1, 2024, making it a timely regulation for online service providers.
While the bill aims to protect children's privacy, potential points of contention could arise regarding the extent of compliance efforts required from businesses. Concerns may surface about the burden of implementing comprehensive assessments and maintaining compliance, particularly for smaller enterprises that may struggle with the financial and administrative demands of the new requirements. Additionally, interpretations of what constitutes appropriate data management practices could lead to disputes between businesses and regulators, forming a battleground over the balance between child protection and business efficiency.