Consumer Protection – Online Products and Services – Data of Children (Maryland Kids Code)
The bill has a significant effect on how online services are designed and marketed, particularly those aimed at children aged up to 17. It imposes several obligations on entities utilizing children’s data, including measures against harmful data collection practices, restrictions on targeted advertising, and limitations on profiling practices. Entities must demonstrate compliance by conducting thorough assessments of their data handling practices, which could lead to a more secure online environment for younger users, aligning Maryland's laws with international child protection standards.
Senate Bill 571, known as the Maryland Age-Appropriate Design Code Act, aims to enhance online consumer protection for children by regulating the design and functionalities of online products that are reasonably likely to be accessed by minors. The bill mandates that covered entities complete a data protection impact assessment to ensure their products align with the best interests of children. It seeks to prioritize children's privacy and safety, requiring that commercial interests do not overshadow children's needs when designing online services.
The sentiment surrounding SB 571 appears overwhelmingly positive among child advocacy groups and many lawmakers concerned about children's digital safety. However, there are concerns raised by some businesses about the potential burdens of compliance, fearing that these regulations could stifle innovation and lead to increased operational costs. Nevertheless, supporters argue that the benefits of protecting children's online experiences far outweigh the challenges posed to businesses.
Notable points of contention include the balance between consumer data protection and commercial interests. Critics from the tech industry are wary of the extensive requirements for compliance and the potential for financial penalties for violations, which could be severe. They voice concerns that these regulations might inadvertently lead to over-censorship of content accessible to children, impacting their autonomy and access to information. Additionally, the complexities involved in assessing children's best interests across different developmental stages add another layer of debate.