Maryland 2024 Regular Session

Maryland Senate Bill SB571 Latest Draft

Bill / Chaptered Version Filed 05/15/2024

                             	WES MOORE, Governor 	Ch. 460 
 
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Chapter 460 
(Senate Bill 571) 
 
AN ACT concerning 
 
Consumer Protection – Online Products and Services – Data of Children 
(Maryland Kids Code) 
 
FOR the purpose of requiring a covered entity that offers an online product reasonably 
likely to be accessed by children to complete a certain data protection impact 
assessment under certain circumstances; requiring certain privacy protections for 
certain online products; prohibiting certain data collection and sharing practices; 
authorizing certain monitoring practices; and generally relating to the protection of 
online privacy of children. 
 
BY repealing and reenacting, with amendments, 
 Article – Commercial Law 
Section 13–301(14)(xl) 
 Annotated Code of Maryland 
 (2013 Replacement Volume and 2023 Supplement) 
 
BY repealing and reenacting, without amendments, 
 Article – Commercial Law 
Section 13–301(14)(xli) 
 Annotated Code of Maryland 
 (2013 Replacement Volume and 2023 Supplement) 
 
BY adding to 
 Article – Commercial Law 
Section 13–301(14)(xlii); and 14–4601 through 14–4612 14–4613 to be under the new 
subtitle “Subtitle 46. Maryland Age–Appropriate Design Code Act” 
 Annotated Code of Maryland 
 (2013 Replacement Volume and 2023 Supplement) 
 
Preamble 
 
 WHEREAS, The United Nations Convention on the Rights of the Child recognizes 
that children need special safeguards and care in all aspects of their lives, specifying how 
children’s rights apply in the digital environment in General Comment No. 25; and 
 
 WHEREAS, As children spend more of their time interacting with the online world, 
the impact of the design of online products on their well–being has become a focus of 
significant concern; and 
  Ch. 460 	2024 LAWS OF MARYLAND  
 
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 WHEREAS, There is widespread agreement at the international level, and 
bipartisan agreement in the United States, that more needs to be done to create a safer 
online space for children to learn, explore, and play; and 
 
 WHEREAS, Lawmakers around the globe have taken steps to enhance privacy 
protections for children based on the understanding that, in relation to data protection, 
greater privacy necessarily means greater security and well–being; and 
 
 WHEREAS, Children should be afforded protections not only by online products and 
services specifically directed at them, but by all online products they are likely to access, 
and thus covered entities should take into account the unique needs of different age ranges, 
including the following developmental stages: 0 to 5 years of age, or “preliterate and early 
literacy”; 6 to 9 years of age, or “core primary school years”; 10 to 12 years of age, or 
“transition years”; 13 to 15 years of age, or “early teens”; and 16 to 17 years of age, or 
“approaching adulthood”; and 
 
 WHEREAS, While it is clear that the same data protection regime may not be 
appropriate for children of all ages, children of all ages should nonetheless be afforded 
privacy and protection, and online products should adopt data protection regimes 
appropriate for children of the ages likely to access those products; and 
 
 WHEREAS, According to the Pew Research Center, in 2022, 97% of American 
teenagers aged 13–17 used the Internet every day, with 46% responding they used the 
Internet almost constantly; and, additionally, 36% of teens reported being concerned about 
their social media use, while an earlier Pew Research Center study found that 59% of teens 
have been bullied or harassed online; and 
 
 WHEREAS, The findings of the Pew Research Center are not surprising, given what 
is known about controllers’ use of personal data and how it is utilized to inform 
manipulative practices, to which children are particularly vulnerable; and 
 
 WHEREAS, Online products that are likely to be accessed by children should offer 
strong privacy protections that, by design, prevent the use of children’s personal data to 
offer elements that the covered entity offering the online product knows, or has reason to 
know, are likely to be materially detrimental to the physical health, mental health, or  
well–being of children; and 
 
 WHEREAS, Ensuring robust privacy, and thus safety, protections for children by 
design is consistent with federal safety laws and policies applied to children’s products, 
regulating everything from toys to clothing to furniture and games; and 
 
 WHEREAS, The consumer protections that federal safety laws apply to children’s 
products require these products to comply with certain safety standards by their very 
design, so that harms to children, and in some cases other consumers, are prevented; and 
   	WES MOORE, Governor 	Ch. 460 
 
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 WHEREAS, It is the intent of the Maryland General Assembly that the Maryland 
Age–Appropriate Design Code Act promote innovation by covered entities whose online 
products are likely to be accessed by children by ensuring that those online products are 
designed in a manner that recognizes the distinct needs of children within different age 
ranges; and now, therefore, 
 
 WHEREAS, It is the intent of the Maryland General Assembly that covered entities 
covered by the Maryland Age–Appropriate Design Code Act may look to guidance and 
innovation in response to the Age–Appropriate Design Code established in the United 
Kingdom and California when developing online products that are likely to be accessed by 
children; now, therefore, 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 
That the Laws of Maryland read as follows: 
 
Article – Commercial Law 
 
13–301. 
 
 Unfair, abusive, or deceptive trade practices include any: 
 
 (14) Violation of a provision of: 
 
 (xl) Title 14, Subtitle 13 of the Public Safety Article; [or] 
 
 (xli) Title 14, Subtitle 45 of this article; or 
 
 (XLII) TITLE 14, SUBTITLE 46 OF THIS ARTICLE; OR 
 
SUBTITLE 46. MARYLAND AGE–APPROPRIATE DESIGN CODE ACT. 
 
14–4601. 
 
 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 
INDICATED. 
 
 (B) (1) “AGGREGATE CONSUMER IN FORMATION” MEANS INFORMATION : 
 
 (I) THAT RELATES TO A GRO UP OR CATEGORY OF CO NSUMERS; 
 
 (II) FROM WHICH I NDIVIDUAL CONSUMER I DENTITIES HAVE 
BEEN REMOVED ; AND 
 
 (III) THAT IS NOT LINKED OR REASONABLY LINKABLE TO ANY 
CONSUMER OR HOUSEHOL D, INCLUDING BY A DEVIC E.  Ch. 460 	2024 LAWS OF MARYLAND  
 
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 (2) “AGGREGATE CONSUMER IN FORMATION” DOES NOT INCLUDE 
INDIVIDUAL CONSUMER RECORDS THAT HAVE BE EN DE–IDENTIFIED. 
 
 (C) “BEST INTERESTS OF CHI LDREN” MEANS A COVERED ENTI TY’S USE OF 
THE PERSONAL DATA OF A CHILD CHILDREN OR THE DESIGN OF AN ONLINE 
PRODUCT IN A WAY THA T DOES NOT: 
 
 (1) BENEFIT THE COVERED E NTITY TO THE DETRIME NT OF A CHILD 
CHILDREN; AND 
 
 (2) RESULT IN: 
 
 (I) REASONABLY FORESEEABL E AND MATERIAL PHYSI CAL OR 
FINANCIAL HARM TO A CHILD CHILDREN; 
 
 (II) SEVERE AND REASONABLY FORESEEABLE PSYCHOLO GICAL 
OR EMOTIONAL HARM TO A CHILD CHILDREN; 
 
 (III) A HIGHLY OFFENSIVE INT RUSION ON A CHILD’S CHILDREN’S 
REASONABLE EXPECTATI ON OF PRIVACY; OR 
 
 (IV) DISCRIMINATION AGAINS T A CHILD CHILDREN BASED ON 
RACE, COLOR, RELIGION, NATIONAL ORIGIN , DISABILITY, GENDER IDENTITY , SEX, 
OR SEXUAL ORIENTATIO N. 
 
 (D) (1) “BIOMETRIC INFORMATION DATA” MEANS INFORMATION DATA 
GENERATED BY AUTOMAT IC MEASUREMENTS OF A N INDIVIDUAL’S BIOLOGICAL 
CHARACTERISTICS . 
 
 (2) “BIOMETRIC INFORMATION DATA” INCLUDES: 
 
 (I) A FINGERPRINT ; 
 
 (II) A VOICEPRINT; 
 
 (III) AN EYE RETINA OR IRIS PATTERN; OR 
 
 (IV) ANY OTHER U NIQUE BIOLOGICAL PAT TERN OR 
CHARACTERISTIC THAT IS USED TO IDENTIFY A SPECIFIC INDIVIDUA L. 
 
 (3) “BIOMETRIC INFORMATION DATA” DOES NOT INCLUDE : 
 
 (I) A DIGITAL OR PHYSICAL PHOTOGRAPH ;   	WES MOORE, Governor 	Ch. 460 
 
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 (II) AN AUDIO OR VIDEO REC ORDING; OR 
 
 (III) DATA GENERATED FROM A DIGITAL OR PH YSICAL 
PHOTOGRAPH , OR AN AUDIO OR VIDEO RECORDING, UNLESS THE DATA IS 
GENERATED TO IDENTIF Y A SPECIFIC INDIVID UAL. 
 
 (E) “CHILD” MEANS A CONSUMER WHO IS UNDER THE AGE OF 18 YEARS. 
 
 (F) (1) “COLLECT” MEANS TO BUY, RENT, GATHER, OBTAIN, RECEIVE, OR 
ACCESS PERSONAL DATA RELATING TO A CONSUM ER. 
 
 (2) “COLLECT” INCLUDES: 
 
 (I) ACTIVELY OR PASSIVELY RECEIVING RECEIVING DATA 
FROM THE CONSUMER ; AND 
 
 (II) OBSERVING THE CONSUME R’S BEHAVIOR. 
 
 (G) (1) “CONSUMER” MEANS AN INDIVIDUAL WHO IS A RESIDENT OF THE 
STATE, HOWEVER IDENTIFIED , INCLUDING BY A UNIQU E IDENTIFIER. 
 
 (2) “CONSUMER” DOES NOT INCLUDE AN INDIVIDUAL ACTING IN A 
COMMERCIAL OR EMPLOY MENT CONTEXT OR AS A N EMPLOYER , AN OWNER, A 
DIRECTOR, AN OFFICER, OR A CONTRACTOR OF A COMPANY, PARTNERSHIP, SOLE 
PROPRIETORSHIP , NONPROFIT ORGANIZATI ON, OR GOVERNMENT AGENCY 
GOVERNMENTAL UNIT WHOSE COMMUNICATIONS OR TRANSACTIONS WITH THE 
COVERED ENTITY OCCUR SOLELY WITHIN THE CO NTEXT OF THAT INDIVI DUAL’S 
ROLE WITH THE COMPAN Y, PARTNERSHIP , SOLE PROPRI ETORSHIP, NONPROFIT 
ORGANIZATION , OR GOVERNMENT AGENCY GOVERNMENTAL UNIT. 
 
 (H) (1) “COVERED ENTITY ” MEANS A SOLE PROPRIE TORSHIP, A LIMITED 
LIABILITY COMPANY , A CORPORATION , AN ASSOCIATION , OR ANY OTHER LEGAL 
ENTITY THAT: 
 
 (I) IS ORGANIZED OR OPERA TED FOR THE PROFIT OR 
FINANCIAL BENEFIT OF ITS SHAREHOLDERS OR OTHER OWNERS ; 
 
 (II) COLLECTS CONSUMERS ’ PERSONAL INFORMATION DATA OR 
USES ANOTHER ENTITY TO CO LLECT CONSUMERS ’ PERSONAL INFORMATION DATA 
ON ITS BEHALF; 
  Ch. 460 	2024 LAWS OF MARYLAND  
 
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 (III) ALONE, OR JOINTLY WITH ITS 	AFFILIATES OR 
SUBSIDIARIES, DETERMINES THE PURPO SES AND MEANS OF THE PROCESSING OF 
CONSUMERS ’ PERSONAL DATA ; 
 
 (IV) DOES BUSINESS IN THE STATE; AND 
 
 (V) 1. HAS ANNUAL GROSS REVE NUES IN EXCESS OF 
$25,000,000, ADJUSTED EVERY ODD –NUMBERED YEAR TO REF LECT ADJUSTMENTS 
IN THE CONSUMER PRICE INDEX; 
 
 2. ANNUALLY BUYS , RECEIVES, SELLS, OR SHARES THE 
PERSONAL DATA OF 50,000 OR MORE CONSUMERS , HOUSEHOLDS , OR DEVICES, 
ALONE OR IN COMBINAT ION WITH ITS AFFILIA TES OR SUBSIDIARIES , FOR THE 
COVERED ENTITY ’S COMMERC IAL PURPOSES; OR 
 
 3. DERIVES AT LEAST 50% OF ITS ANNUAL REVENU ES 
FROM THE SALE OF CON SUMERS’ PERSONAL DATA . 
 
 (2) “COVERED ENTITY ” INCLUDES: 
 
 (I) AN ENTITY THAT CONTRO LS OR IS CONTROLLED BY A 
BUSINESS AND THAT SH ARES A NAME, SERVICE MARK , OR TRADEMARK THAT WOULD 
CAUSE A REASONABLE C ONSUMER TO UNDERSTAN D THAT TWO OR MORE E NTITIES 
ARE COMMONLY OWNED ; AND 
 
 (II) A JOINT VENTURE OR PAR TNERSHIP COMPOSED OF 
BUSINESSES IN WHICH EACH HAS AT LEAST A 40% INTEREST IN THE JOIN T VENTURE 
OR PARTNERSHIP . 
 
 (I) (1) “DARK PATTERN ” MEANS A USER INTERFA CE DESIGNED OR 
MANIPULATED WITH THE PURPOSE OF SUBVERTIN G OR IMPAIRING USER 
AUTONOMY , DECISION MAKING , OR CHOICE. 
 
 (2) “DARK PATTERN ” INCLUDES ANY PRACTIC E IDENTIFIED BY THE 
FEDERAL TRADE COMMISSION AS A DARK PATTERN.  
 
 (J) “DATA PROTECTION IMPAC T ASSESSMENT” OR “ASSESSMENT” MEANS A 
SYSTEMATIC SURVEY TO ASSESS COMPLIANCE WI TH THE DUTY TO ACT I N THE BEST 
INTERESTS OF CHILDRE N. 
 
 (K) “DEFAULT” MEANS A PRESELECTED OPTION ADOPTED BY TH E 
COVERED ENTITY FOR A N ONLINE PRODUCT. 
   	WES MOORE, Governor 	Ch. 460 
 
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 (L) “DE–IDENTIFIED INFORMATI ON” MEANS DATA THAT CANN	OT 
REASONABLY BE USED T O INFER INFORMATION ABOUT, OR OTHERWISE BE LINK ED 
TO, AN IDENTIFIED OR IDE NTIFIABLE INDIVIDUAL , IF THE COVERED ENTIT Y THAT 
POSSESSES THE DATA : 
 
 (1) TAKES REASONABLE MEASURES TO ENSURE T HAT THE DATA 
CANNOT BE LINKED WIT H AN INDIVIDUAL; 
 
 (2) PUBLICLY COMMITS TO : 
 
 (I) MAINTAIN AND USE THE DATA IN DE–IDENTIFIED FORM ; 
AND 
 
 (II) NOT ATTEMPT TO RE –IDENTIFY THE INFORMA TION; AND 
 
 (3) CONTRACTUALLY OBLIGAT ES ANY RECIP IENTS OF THE 
INFORMATION TO COMPL Y WITH ALL PROVISION S OF THIS SUBSECTION . 
 
 (M) “DERIVED DATA” MEANS DATA THAT ARE DERIVED FROM OTHER D ATA 
OR INFORMATION , OR OTHERWISE OBTAINE D THROUGH CORRELATIO NS, 
PREDICTIONS, ASSUMPTIONS , INFERENCES, OR CONCLUSIONS DRA WN FROM FACTS 
OR EVIDENCE OR ANOTH ER SOURCE OF INFORMA TION OR DATA ABOUT A CHILD OR 
A CHILD’S DEVICE. 
 
 (N) (L) “DIVISION” MEANS THE DIVISION OF CONSUMER PROTECTION 
OF THE OFFICE OF THE ATTORNEY GENERAL. 
 
 (O) (M) (1) “ONLINE PRODUCT ” MEANS AN ONLINE SERVICE, PRODUCT, 
OR FEATURE. 
 
 (2) “ONLINE PRODUCT ” DOES NOT INCLUDE : 
 
 (I) A TELECOMMUNICATIONS S ERVICE, AS DEFINED IN 47 
U.S.C. § 153; 
 
 (II) THE SALE, DELIVERY, OR USE OF A PHYSICAL PRODUCT 
SOLD BY AN ONLINE RE TAILER; OR 
 
 (III) A BROADBAND INTERNET ACCESS SERVICE , AS DEFINED IN 
47 C.F.R. § 8.1(B). 
 
 (P) (N) (1) “PERSONAL DATA ” MEANS INFORMATION TH AT IS LINKED 
OR REASONABLY ABLE T O BE LINKED, ALONE OR IN COMBINAT ION WITH OTHER 
INFORMATION , TO AN IDENTIFIED OR IDENTIFIABLE INDIVID UAL.  Ch. 460 	2024 LAWS OF MARYLAND  
 
– 8 – 
 
 (2) “PERSONAL DATA ” INCLUDES DERIVED DAT A THAT OTHERWISE 
MEETS THE DEFINITION IN PARAGRAPH (1) OF THIS SUBSECTION DOES NOT 
INCLUDE: 
 
 (I) DE–IDENTIFIED DATA ; OR 
 
 (II) PUBLICLY AVAILABLE IN FORMATION. 
 
 (Q) (O) (1) “PRECISE GEOLOCATION ” MEANS ANY DATA THAT IS: 
 
 (1) DERIVED FROM A DEVICE ; AND 
 
 (2) USED OR INTENDED TO B E USED TO LOCATE A C ONSUMER 
GEOGRAPHICALLY WITHI N A RADIUS OF UP TO 1,850 FEET INFORMATION DERIVED 
FROM TECHNOLOGY THAT CAN PRECISELY AND AC CURATELY IDENTIFY TH E 
SPECIFIC LOCATION OF A CONSUMER WITHIN A RA DIUS OF 1,750 FEET. 
 
 (2) “PRECISE GEOLOCATION ” INCLUDES LATITUDE AN D LONGITUDE 
COORDINATES OF SIMIL AR PRECISION TO THOS E PRODUCED BY A GLOB AL 
POSITIONING SYSTEM O R A SIMILAR MECHANIS M. 
 
 (3) “PRECISE GEOLOCATION ” DOES NOT INCLUDE : 
 
 (I) THE CONTENT OF COMMUN ICATIONS; 
 
 (II) DATA GENERATED BY OR CONNECTED WITH A UTI LITY 
COMPANY’S ADVANCED METERING INFRASTRUCTURE ; OR 
 
 (III) DATA GENERATED BY EQU IPMENT USED BY A UTI LITY 
COMPANY. 
 
 (R) (P) (1) “PROCESS” MEANS TO CONDUCT OR DIRECT ANY 
OPERATION THAT MAY BE PERFORME D ON PERSONAL DATA , WHETHER OR NOT BY 
AUTOMATED MEANS TO PERFORM AN OPERAT ION OR SET OF OPERAT IONS BY 
MANUAL OR AUTOMATED MEANS ON PERSONAL DA TA. 
 
 (2) “PROCESS” INCLUDES: 
 
 (I) COLLECTING PERSONAL D ATA; 
 
 (II) USING PERSONAL DATA ; 
 
 (III) STORING PERSONAL DATA ;   	WES MOORE, Governor 	Ch. 460 
 
– 9 – 
 
 (IV) DISCLOSING PERSONAL D ATA; 
 
 (V) ANALYZING PERSONAL DA TA; 
 
 (VI) DELETING PERSONAL DAT A; 
 
 (VII) MODIFYING PERSONAL DA TA; AND 
 
 (VIII) OTHERWISE HANDLING PE RSONAL DATA COLLECTING, 
USING, STORING, DISCLOSING, ANALYZING, DELETING, OR MODIFYING PERSONA L 
DATA. 
 
 (S) (Q) (1) “PROFILING” MEANS ANY FORM OF AU	TOMATED 
PROCESSING OF PERSON AL DATA THAT USES PE RSONAL DATA TO EVALU ATE, 
ANALYZE, OR PREDICT CERTAIN A SPECTS RELATING TO A N INDIVIDUAL, INCLUDING 
AN INDIVIDUAL ’S ECONOMIC SITUATION , HEALTH, PERSONAL PREFERENCES , 
INTERESTS, RELIABILITY, BEHAVIOR, LOCATION, OR MOVEMENTS . 
 
 (2) “PROFILING” DOES NOT INCLUDE THE PROCESSING OF 
PERSONAL DATA THAT D OES NOT RESULT IN AN ASSESSMENT OR JUDGME NT ABOUT 
AN INDIVIDUAL. 
 
 (T) (R) (1) “PUBLICLY AVAILABLE IN	FORMATION” MEANS 
INFORMATION THAT : 
 
 (I) IS LAWFULLY MADE AVAI LABLE FROM FEDERAL , STATE, OR 
LOCAL GOVERNMENT REC ORDS; OR 
 
 (II) A COVERED ENTITY HAS A REASONABLE BASIS TO BELIEVE 
IS LAWFULLY MADE AVA ILABLE TO THE GENERAL PUB LIC BY THE CONSUMER OR BY 
WIDELY DISTRIBUTED M EDIA. 
 
 (2) “PUBLICLY AVAILABLE IN FORMATION” DOES NOT INCLUDE 
BIOMETRIC INFORMATION DATA COLLECTED BY A COVER ED ENTITY ABOUT A 
CONSUMER WITHOUT THE CONSUMER ’S KNOWLEDGE . 
 
 (U) (S) “REASONABLY LIKELY TO BE ACCESSED BY CHILD REN” MEANS 
REASONABLY EXPECTED IT IS REASONABLE TO EXPECT THAT THE ONLINE PROD UCT 
WOULD BE ACCESSED BY CHILDREN, BASED ON SATISFYING ANY OF THE FOLLOWING 
CRITERIA: 
 
 (1) THE ONLINE PRODUCT IS DIRECTED TO CHILDREN AS DEFINED IN 
THE FEDERAL CHILDREN’S ONLINE PRIVACY PROTECTION ACT;  Ch. 460 	2024 LAWS OF MARYLAND  
 
– 10 – 
 
 (2) THE ONLINE PRODUCT IS DETERMINED , BASED ON COMPETENT 
AND RELIABLE EVIDENC E REGARDING AUDIENCE COMPOSITION , TO BE ROUTINELY 
ACCESSED BY A SIGNIF ICANT NUMBER OF CHIL DREN; 
 
 (3) THE ONLINE PRODUCT IS SUB STANTIALLY SIMILAR O R THE SAME 
AS AN ONLINE PRODUCT THAT SATISFIES ITEM (2) OF THIS SUBSECTION ; 
 
 (4) THE ONLINE PRODUCT FE ATURES ADVERTISEMENT S MARKETED 
TO CHILDREN; 
 
 (5) THE COVERED ENTITY ’S INTERNAL RESEARCH FINDINGS 
DETERMINE THA T A SIGNIFICANT AMOU NT OF THE ONLINE PRO DUCT’S AUDIENCE IS 
COMPOSED OF CHILDREN ; OR 
 
 (6) THE COVERED ENTITY KN OWS OR SHOULD HAVE K NOWN THAT A 
USER IS A CHILD. 
 
 (V) (T) (1) “SELL” MEANS TO TRANSFER , RENT, RELEASE, DISCLOSE, 
DISSEMINATE, MAKE AVAILABLE , OR OTHERWISE COMMUNIC ATE, WHETHER 
ORALLY, IN WRITING, OR BY ELECTRONIC OR OTHER MEANS , A CONSUMER ’S 
PERSONAL DATA , IN A TRANSACTION FOR MONETARY OR OTHER VA LUABLE 
CONSIDERATION BETWEE N A COVERED ENTITY A ND A THIRD PARTY . 
 
 (2) “SELL” DOES NOT INCLUDE : 
 
 (I) THE DISCLOSURE OF PER SONAL DATA TO THE SE RVICE 
PROVIDER THAT PROCES SES PERSONAL DATA ON BEHALF OF THE COVERE D ENTITY; 
 
 (II) THE DISCLOSURE OF PER SONAL DATA TO A THIR D PARTY 
FOR PURPOSES OF PROV IDING A PRODUCT OR S ERVICE REQUESTED BY THE 
CONSUMER ; 
 
 (III) THE DISCLOSURE OR TRA NSFER OF PERSONAL DA TA TO AN 
AFFILIATE OR SUBSIDI ARY OF THE COVERED E NTITY; 
 
 (IV) THE DISCLOSURE OF PER SONAL DATA WHERE THE 
CONSUMER DIRECTS THE COVERED ENTITY TO DI SCLOSE THE PERSONAL DATA OR 
INTENTIONALLY USES T HE COVERED ENTITY TO INTERACT W ITH A THIRD PARTY; OR 
 
 (V) THE DISCLOSURE OR TRA NSFER OF PERSONAL DA TA TO A 
THIRD PARTY AS AN AS SET THAT IS PART OF AN ACTUAL OR PROPOSE D MERGER,   	WES MOORE, Governor 	Ch. 460 
 
– 11 – 
ACQUISITION, BANKRUPTCY , OR OTHER TRANSACTION , IN WHICH THE THIRD P ARTY 
ASSUMES CONTROL OF ALL OR PART OF TH E COVERED ENTITY ’S ASSETS. 
 
 (W) (1) “SENSITIVE PERSONAL DA TA” MEANS: 
 
 (I) PERSONAL DATA THAT RE VEALS A CONSUMER ’S: 
 
 1. SOCIAL SECURITY NUMBER , DRIVER’S LICENSE 
NUMBER, STATE IDENTIFICATION CARD NUMBER , OR PASSPORT NUMBER ; 
 
 2. ACCOUNT LOGIN INFORMA	TION, FINANCIAL 
ACCOUNT NUMBER , DEBIT CARD NUMBER , OR CREDIT CARD NUMBE R, IN 
COMBINATION WITH ANY REQUIRED SECURITY OR ACCESS CODE , PASSWORD, OR 
CREDENTIALS THAT ALL OW ACCESS TO AN ACCO UNT; 
 
 3. PRECISE GEOLOCATION ; 
 
 4. RACIAL OR ETHNIC ORIG IN OR RELIGIOUS OR 
PHILOSOPHICAL BELIEF S; 
 
 5. MAIL, E–MAIL, TEXT, OR MESSAGE CONTENTS , 
UNLESS THE COVERED E NTITY IS THE INTENDE D RECIPIENT; OR 
 
 6. GENETIC DATA; 
 
 (II) BIOMETRIC INFORMATION THAT IS OR MAY BE PR OCESSED 
FOR THE PURPOSE OF UNIQUELY IDENTIFYING A CONSUM ER; 
 
 (III) PERSONAL DATA COLLECT ED AND ANALYZED CONC ERNING 
A CONSUMER ’S HEALTH; OR 
 
 (IV) PERSONAL DATA COLLECT ED AND ANALYZED CONC ERNING 
A CONSUMER ’S SEX LIFE OR SEXUAL ORIENTATION . 
 
 (2) “SENSITIVE PERSONAL DATA” DOES NOT INCLUDE PUB LICLY 
AVAILABLE INFORMATIO N. 
 
 (X) (U) “SERVICE PROVIDER ” MEANS A PERSON THAT PROCESSES 
PERSONAL DATA ON BEH ALF OF A COVERED ENT ITY AND THAT RECEIVE S FROM OR 
ON BEHALF OF THE COV ERED ENTITY A CONSUM ER’S PERSONAL DATA FOR 
BUSINESS PURPOSES IN ACCORDAN CE WITH A WRITTEN CO NTRACT, IF THE 
CONTRACT PROHIBITS T HE PERSON FROM : 
 
 (1) SELLING OR SHARING TH E PERSONAL DATA ;  Ch. 460 	2024 LAWS OF MARYLAND  
 
– 12 – 
 
 (2) RETAINING, USING, OR DISCLOSING THE PE RSONAL DATA FOR 
ANY PURPOSE OTHER TH AN FOR THE BUSINESS PURPOSES SPECIFIED IN THE 
CONTRACT FOR THE COV ERED ENTITY , INCLUDING RETAINING , USING, OR 
DISCLOSING THE PERSO NAL DATA FOR A COMME RCIAL PURPOSE OTHER THAN THE 
BUSINESS PURPOSES SP ECIFIED IN THE CONTR ACT WITH THE COVERED ENTITY, OR 
AS OTHERWISE ALLOWED UNDER THIS SUBTITLE ; 
 
 (3) RETAINING, USING, OR DISCLOSING THE PE RSONAL DATA 
OUTSIDE THE DIRECT B USINESS RELATIONSHIP BETWEEN THE SERVICE PROVIDER 
AND THE COVERED ENTI TY; AND 
 
 (4) COMBINING THE PERSONA L DATA THAT THE SERV ICE PROVIDER 
RECEIVES FROM , OR ON BEHALF OF , THE COVERE D ENTITY WITH PERSON AL DATA 
THAT IT RECEIVES FRO M, OR ON BEHALF OF , ANOTHER PERSON OR PE RSONS, OR 
COLLECTS FROM ITS OW N INTERACTION WITH T HE CONSUMER . 
 
 (Y) (V) “SHARE” MEANS TO RENT , RELEASE, DISSEMINATE, MAKE 
AVAILABLE, TRANSFER, OR OTHERWISE COMMUNI CATE, WHETHER ORALLY , IN 
WRITING, OR BY ELECTRONIC OR OTHER MEANS , A CONSUMER ’S PERSONAL DATA TO 
A THIRD PARTY FOR CR OSS–CONTEXT BEHAVIORAL A DVERTISING WHETHER O R NOT 
FOR MONETARY OR OTHE R VALUABLE CONSIDERA TION, INCLUDING IN A 
TRANSACTION BETWEEN A COVERED EN TITY AND A THIRD PAR TY FOR TARGETED 
ADVERTISING FOR THE BENEFIT OF A COVERED ENTITY IN WHICH NO M ONEY IS 
EXCHANGED . 
 
 (Z) (1) “TARGETED ADVERTISING ” MEANS DISPLAYING 
ADVERTISEMENTS TO A CONSUMER WHERE THE A DVERTISEMENT IS SELE CTED 
BASED ON PERSONAL DA TA OBTAINED OR INFERRED FROM THAT CONSUMER ’S 
ACTIVITIES OVER TIME AND ACROSS NONAFFILI ATED INTERNET WEBSITES OR 
ONLINE APPLICATIONS TO PREDICT THE CONSU MER’S PREFERENCES OR 
INTERESTS. 
 
 (2) “TARGETED ADVERTISING ” DOES NOT INCLUDE : 
 
 (I) ADVERTISEMENTS BASE D ON ACTIVITIES WITH IN A 
COVERED ENTITY ’S OWN INTERNET WEBSITES OR ONLINE APPLICATIONS ; 
 
 (II) ADVERTISEMENTS BASED ON THE CONTEXT OF A 
CONSUMER ’S CURRENT SEARCH QUE RY, VISIT TO AN INTERNET WEBSITE , OR USE OF 
AN ONLINE APPLICATIO N; 
   	WES MOORE, Governor 	Ch. 460 
 
– 13 – 
 (III) ADVERTISEMEN TS DIRECTED TO A CON	SUMER IN 
RESPONSE TO THE CONS UMER’S REQUEST FOR INFORM ATION OR FEEDBACK ; OR 
 
 (IV) PROCESSING PERSONAL D ATA SOLELY TO MEASUR E OR 
REPORT ADVERTISING F REQUENCY, PERFORMANCE , OR REACH. 
 
 (AA) (W) “THIRD PARTY” MEANS A PERSON WHO I S NOT: 
 
 (1) THE COVERED ENTITY WI	TH WHICH THE CONSUME	R 
INTENTIONALLY INTERA CTS AND THAT COLLECT S PERSONAL DATA FROM THE 
CONSUMER AS PART OF THE CONSUMER ’S INTERACTION WITH T HE COVERED 
ENTITY; OR 
 
 (2) A SERVICE PROVIDER FOR THE COVERED ENTITY . 
 
14–4602. 
 
 THIS SUBTITLE DOES NOT AP PLY TO: 
 
 (1) DATA SUBJECT TO A STA TUTE OR REGULATION I DENTIFIED 
UNDER ITEM (I) OF THIS ITEM THAT IS CONTROLLED BY A COVE RED ENTITY OR 
SERVICE PROVIDER THA T IS: 
 
 (I) REQUIRED TO COMPLY WI TH: 
 
 1. TITLE V OF THE FEDERAL GRAMM–LEACH–BLILEY 
ACT; 
 
 2. THE FEDERAL HEALTH INFORMATION TECHNOLOGY 
FOR ECONOMIC AND CLINICAL HEALTH ACT; OR 
 
 3. REGULATIONS PROMULGAT ED UNDER § 264(C) OF 
THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996; AND 
 
 (II) IN COMPLIANCE WITH TH E INFORMATION SECURITY 
REQUIREMENTS OF APPL ICABLE STATUTES OR R EGULATIONS IDENTIFIE D IN ITEM 
(I) OF THIS ITEM; OR PROTECTED HEALTH INFO RMATION THAT IS COLL ECTED BY A 
COVERED ENTITY OR BU SINESS ASSOCIATION G OVERNED BY THE PRIVA CY 
SECURITY AND BREACH NOTIFICATION RULES IN 45 C.F.R. PARTS 160 AND 164, 
ESTABLISHED UNDER TH E FEDERAL HEALTH INSURANCE PORTABILITY AND 
ACCOUNTABILITY ACT OF 1996 AND THE FEDERAL HEALTH INFORMATION 
TECHNOLOGY FOR ECONOMIC AND CLINICAL HEALTH ACT; 
  Ch. 460 	2024 LAWS OF MARYLAND  
 
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 (2) A COVERED ENTITY GOVER NED BY THE PRIVACY SECURITY AND 
BREACH NOTIFICATION RULES IN 45 C.F.R. PARTS 160 AND 164, ESTABLISHED 
UNDER THE FEDERAL HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY 
ACT OF 1996 AND THE FEDERAL HEALTH INFORMATION TECHNOLOGY FOR 
ECONOMIC AND CLINICAL HEALTH ACT, TO THE EXTENT THAT THE COVERED 
ENTITY MAINTAINS PAT IENT INFORMATION IN THE SAME MANNER AS M EDICAL 
INFORMATION OR PROTE CTED HEALTH INFORMAT ION AS DESCRIBED IN ITEM (1) OF 
THIS SECTION; OR 
 
 (3) (2) INFORMATION COLLECTED AS PART OF A CLINICA L TRIAL 
SUBJECT TO THE FEDERAL POLICY FOR THE PROTECTION OF HUMAN SUBJECTS, 
IN ACCORDANCE WITH : 
 
 (I) GOOD CLINICAL PRACTIC E GUIDELINES ISSUED BY THE 
INTERNATIONAL COUNCIL FOR HARMONISATION OF TECHNICAL REQUIREMENTS 
FOR PHARMACEUTICALS FOR HUMAN USE; OR 
 
 (II) HUMAN SUB JECT PROTECTION REQU IREMENTS OF THE 
U.S. FOOD AND DRUG ADMINISTRATION . 
 
14–4603. 
 
 IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT : 
 
 (1) CHILDREN SHOULD BE AF FORDED PROTECTIONS N OT ONLY BY 
ONLINE PRODUCTS SPEC IFICALLY DIRECTED AT THEM, BUT BY ALL ONLINE 
PRODUCTS THEY ARE RE ASONABLY LIKELY TO A CCESS; 
 
 (2) COVERED ENTITIES THAT DEVELOP AND PROVIDE ONLINE 
SERVICES PRODUCTS THAT CHILDREN ARE REASONABLY LIKELY TO ACCESS SHA LL 
ENSURE THE BEST INTE RESTS OF CHILDREN WH EN DESIGNING, DEVELOPING , AND 
PROVIDING THO SE ONLINE PRODUCTS ; 
 
 (3) ALL COVERED ENTITIES THAT OPERATE IN THE STATE AND 
PROCESS CHILDREN ’S DATA IN ANY CAPACI TY SHALL DO SO IN A MANNER 
CONSISTENT WITH THE BEST INTERESTS OF CH ILDREN; 
 
 (4) IF A CONFLICT ARISES BETWEEN COMMERCIAL I NTERESTS AND 
THE BEST INTERESTS OF CHI LDREN, COVERED ENTITIES THA T DEVELOP ONLINE 
PRODUCTS LIKELY TO B E ACCESSED BY CHILDR EN SHALL GIVE PRIORITY TO 
PRIORITIZE THE PRIVACY, SAFETY, AND WELL–BEING OF CHILDREN OVER THOSE 
COMMERCIAL INTERESTS; AND; 
   	WES MOORE, Governor 	Ch. 460 
 
– 15 – 
 (5) NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO INFRINGE ON 
THE EXISTING RIGHTS AND FREEDOMS OF CHIL DREN REQUIRE A COVERED EN TITY 
TO MONITOR OR CENSOR THIRD–PARTY CONTENT OR OTH ERWISE IMPACT THE 
EXISTING RIGHTS AND FREEDOMS OF ANY PERS ON; AND 
 
 (6) NOTHING I N THIS SUBTITLE MAY 	BE CONSTRUED TO 
DISCRIMINATE AGAINST CHILDREN ON THE BASI S OF RACE, COLOR, RELIGION, 
NATIONAL ORIGIN , DISABILITY, GENDER IDENTITY , SEX, OR SEXUAL ORIENTATIO N. 
 
14–4604. 
 
 (A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A COVERED 
ENTITY THAT PROVIDES A N ONLINE PRODUCT REA SONABLY LIKELY TO BE 
ACCESSED BY CHILDREN SHALL PREPARE A DATA PROTECTION IMPACT 
ASSESSMENT FOR THE O NLINE PRODUCT . 
 
 (2) ON OR BEFORE APRIL 1, 2026, A COVERED ENTITY SHA LL 
PREPARE A DATA PROTE CTION IMPACT ASSESSMENT FOR ANY O NLINE PRODUCT 
THAT: 
 
 (I) MEETS THE CRITERIA UN DER PARAGRAPH (1) OF THIS 
SUBSECTION; 
 
 (II) IS OFFERED TO THE PUB LIC ON OR BEFORE APRIL 1, 2026; 
AND 
 
 (III) WILL CONTINUE TO BE O FFERED TO THE PUBLIC AFTER 
JULY 1, 2026. 
 
 (3) FOR AN ONLINE PRODUCT TH AT MEETS THE CRITERI A UNDER 
PARAGRAPH (1) OF THIS SUBSECTION A ND IS INITIALLY OFFE RED TO THE PUBLIC 
AFTER APRIL 1, 2026, A COVERED ENTITY SHA LL COMPLETE A DATA P ROTECTION 
IMPACT ASSESSMENT WITHIN 90 DAYS AFTER THE ONLIN E PRODUCT IS OFFE RED TO 
THE PUBLIC. 
 
 (B) THE DATA PROTECTION I MPACT ASSESSMENT SHA LL: 
 
 (1) IDENTIFY THE PURPOSE OF THE ONLINE PRODUC T; 
 
 (2) IDENTIFY HOW THE ONLI NE PRODUCT USES CHIL DREN’S DATA; 
 
 (3) DETERMINE WHETHER THE ONLINE PRODUCT IS DE SIGNED AND 
OFFERED IN A MANNER CONSISTE NT WITH THE BEST INT ERESTS OF CHILDREN  Ch. 460 	2024 LAWS OF MARYLAND  
 
– 16 – 
REASONABLY LIKELY TO ACCESS THE ONLINE PR ODUCT THROUGH CONSID ERATION 
OF: 
 
 (I) WHETHER THE DATA MANA GEMENT OR PROCESSING 
PRACTICES OF THE ONL INE PRODUCT COULD LE AD TO CHILDREN EXPER IENCING OR 
BEING TARGETED BY CONT ACTS THAT WOULD RESU LT IN: 
 
 1. REASONABLY FORESEEABL E AND MATERIAL 
PHYSICAL OR FINANCIA L HARM TO THE CHILD CHILDREN; 
 
 2. REASONABLY FORESEEABL E AND EXTREME 
PSYCHOLOGICAL OR EMO TIONAL HARM TO THE CHILD CHILDREN; 
 
 3. A HIGHLY OFFENSIVE INT RUSION ON THE CHILD’S 
CHILDREN’S REASONABLE EXPECTATI ON OF PRIVACY; OR 
 
 4. DISCRIMINATION AGAINS T THE CHILD CHILDREN 
BASED ON RACE , COLOR, RELIGION, NATIONAL ORIGIN , DISABILITY, GENDER 
IDENTITY, SEX, OR SEXUAL ORIENTATIO N; 
 
 (II) WHETHER THE DATA MANA GEMENT OR PROCESSING 
PRACTICES OF THE ONL INE PRODUCT COULD PE RMIT CHILDREN TO WITNESS, 
PARTICIPATE IN, OR BE SUBJECT TO CON DUCT THAT WOULD RESU LT IN: 
 
 1. REASONABLY FORESEEABL E AND MATERIAL 
PHYSICAL OR FINANCIA L HARM TO THE CHILD CHILDREN; 
 
 2. REASONABLY FORESEEABL E AND EXTREME 
PSYCHOLOGICAL OR EMO TIONAL HARM TO THE CHILD CHILDREN; 
 
 3. A HIGHLY OFFENSIVE INT RUSION ON THE CHILD’S 
CHILDREN’S REASONABLE EXPECTATI ON OF PRIVACY; OR 
 
 4. DISCRIMINATION AGAINS T THE CHILD CHILDREN 
BASED ON RACE , COLOR, RELIGION, NATIONAL ORIGIN , DISABILITY, GENDER 
IDENTITY, SEX, OR SEXUAL ORIENTATIO N; 
 
 (III) WHETHER THE DATA MANA GEMENT OR PROCESSING 
PRACTICES OF THE ONL INE PRODUCT ARE REAS ONABLY EXPECTED TO A LLOW 
CHILDREN BECOMING PA RTY TO OR EXPLOITED BY A CONTR ACT THROUGH THE 
ONLINE PRODUCT THAT WOULD RESULT IN : 
   	WES MOORE, Governor 	Ch. 460 
 
– 17 – 
 1. REASONABLY FORESEEABL E AND MATERIAL 
PHYSICAL OR FINANCIA L HARM TO THE CHILD CHILDREN; 
 
 2. REASONABLY FORESEEABL E AND EXTREME 
PSYCHOLOGICAL OR EMO TIONAL HARM TO THE CHILD CHILDREN; 
 
 3. A HIGHLY OFFENSIVE INT RUSION ON THE CHILD’S 
CHILDREN’S REASONABLE EXPECTATI ON OF PRIVACY; OR 
 
 4. DISCRIMINATION AGAINS T THE CHILD CHILDREN 
BASED ON RACE , COLOR, RELIGION, NATIONAL ORIGIN , DISABILITY, GENDER 
IDENTITY, SEX, OR SEXUAL OR IENTATION; 
 
 (IV) WHETHER TARGETED ADVE RTISING SYSTEMS USED BY THE 
ONLINE PRODUCT WOULD RESULT IN: 
 
 1. REASONABLY FORESEEABL E AND MATERIAL 
PHYSICAL OR FINANCIA L HARM TO THE CHILD ;  
 
 2. REASONABLY FORESEEABL E AND EXTREME 
PSYCHOLOGICAL OR EMO TIONAL HARM TO THE CHILD ; 
 
 3. A HIGHLY OFFENSIVE INT RUSION ON THE CHILD ’S 
CHILDREN’S REASONABLE EXPECTATI ON OF PRIVACY; OR 
 
 4. DISCRIMINATION AGAINS T THE CHILD BASED ON 
RACE, COLOR, RELIGION, NATIONAL ORIGIN , DISABILITY, SEX, OR SEXUAL 
ORIENTATION ; 
 
 (V) WHETHER THE ONLINE PR ODUCT USES SYSTEM DE SIGN 
FEATURES TO INCREASE , SUSTAIN, OR EXTEND THE USE OF THE ONLINE PRODUCT , 
INCLUDING THE AUTOMA TIC PLAYING OF MEDIA , REWARDS FOR TIME SPE NT, AND 
NOTIFICATIONS THAT W OULD RESULT IN : 
 
 1. REASONABLY FORESEEABL E AND MATERIAL 
PHYSICAL OR FINANCIA L HARM TO THE CHILD CHILDREN; 
 
 2. REASONABLY FORESEEABL E AND EXTREME 
PSYCHOLOGICAL OR EMO TIONAL HARM TO THE CHILD CHILDREN; 
 
 3. A HIGHLY OFFENSIVE INT RUSION ON THE CHILD’S 
CHILDREN’S REASONABLE EXPECTATI ON OF PRIVACY; OR 
  Ch. 460 	2024 LAWS OF MARYLAND  
 
– 18 – 
 4. DISCRIMINATION AGAINS T THE CHILD CHILDREN 
BASED ON RACE , COLOR, RELIGION, NATIONAL ORIGIN , DISABILITY, GENDER 
IDENTITY, SEX, OR SEXUAL ORIENTATIO N; 
 
 (VI) (V) WHETHER, HOW, AND FOR WHAT PURPOSE THE 
ONLINE PRODUCT COLLECTS OR PROCESSES SENSITIVE PERSONAL DATA OF 
CHILDREN AND WHETHER THOSE PRACTICES WOUL D RESULT IN: 
 
 1. REASONABLY FORESEEABL E AND MATERIAL 
PHYSICAL OR FINANCIA L HARM TO THE CHILD CHILDREN; 
 
 2. REASONABLY FORESEEABL E AND EXTREME 
PSYCHOLO GICAL OR EMOTIONAL H ARM TO THE CHILD CHILDREN; 
 
 3. A HIGHLY OFFENSIVE INT RUSION ON THE CHILD’S 
CHILDREN’S REASONABLE EXPECTATI ON OF PRIVACY; OR 
 
 4. DISCRIMINATION AGAINS T THE CHILD CHILDREN 
BASED ON RACE , COLOR, RELIGION, NATIONAL ORIGIN , DISABILITY, GENDER 
IDENTITY, SEX, OR SEXUAL ORIENTATIO N; 
 
 (VII) (VI) WHETHER AND HOW DATA 	COLLECTED TO 
UNDERSTAND THE EXPER IMENTAL IMPACT OF TH E PRODUCT REVEALS DA TA 
MANAGEMENT OR DESIGN PRACTICES THAT WOULD RESULT IN: 
 
 1. REASONABLY FORESEEABL E AND MATERIAL 
PHYSICAL OR FINANCIA L HARM TO THE CHILD CHILDREN; 
 
 2. REASONABLY FORESEEABL E AND EXTREME 
PSYCHOLOGICAL OR EMO TIONAL HARM TO THE CHILD CHILDREN; 
 
 3. A HIGHLY OFFENSIVE INT RUSION ON THE CHILD’S 
CHILDREN’S REASONABL E EXPECTATION OF PRI VACY; OR 
 
 4. DISCRIMINATION AGAINS T THE CHILD CHILDREN 
BASED ON RACE , COLOR, RELIGION, NATIONAL ORIGIN , DISABILITY, GENDER 
IDENTITY, SEX, OR SEXUAL ORIENTATIO N; 
 
 (VIII) (VII) WHETHER ALGORITHMS US ED BY THE ONLINE 
PRODUCT WOULD RESULT IN: 
 
 1. REASONABLY FORESEEABL E AND MATERIAL 
PHYSICAL OR FINANCIA L HARM TO THE CHILD CHILDREN;   	WES MOORE, Governor 	Ch. 460 
 
– 19 – 
 
 2. REASONABLY FORESEEABL E AND EXTREME 
PSYCHOLOGICAL OR EMO TIONAL HARM TO THE CHILD CHILDREN; 
 
 3. A HIGHLY OFFENSIVE INT RUSION ON THE CHILD’S 
CHILDREN’S REASONABLE EXPECTATI ON OF PRIVACY; OR 
 
 4. DISCRIMINATION AGAINS T THE CHILD CHILDREN 
BASED ON RACE , COLOR, RELIGION, NATIONAL ORIGIN , DISABILITY, GENDER 
IDENTITY, SEX, OR SEXUAL ORIENTATIO N; AND 
 
 (IX) (VIII) ANY OTHER FACTOR THAT MAY INDICATE THAT TH E 
ONLINE PRODUCT IS DE SIGNED AND OFFERED IN A MANNER THAT IS INCONSISTENT 
WITH THE BEST INTERE STS OF CHILDREN ; AND 
 
 (4) INCLUDE A DESCRIPTION OF STEPS THAT THE CO VERED ENTITY 
HAS TAKEN AND WILL T AKE TO COMPLY WIT H THE DUTY TO ACT IN A MANNER 
CONSISTENT WITH THE BEST INTERESTS OF CH ILDREN. 
 
 (C) (1) A DATA PROTECTION IMPA CT ASSESSMENT PREPAR ED BY A 
COVERED ENTITY FOR T HE PURPOSE OF COMPLI ANCE WITH ANY OTHER LAW 
COMPLIES WITH THIS S ECTION IF THE ASSESS MENT MEETS THE REQUIREMENTS OF 
THIS SECTION. 
 
 (2) A SINGLE DATA PROTECTI ON IMPACT ASSESSMENT MAY CONTAIN 
MULTIPLE SIMILAR PRO CESSING OPERATIONS T HAT PRESENT SIMILAR RISKS ONLY 
IF EACH RELEVANT ONL INE PRODUCT IS ADDRE SSED. 
 
14–4605. 
 
 A COVERED ENTITY REQUI RED TO COMPL ETE A DATA PROTECTIO N IMPACT 
ASSESSMENT UNDER § 14–4604 OF THIS SUBTITLE SHA LL: 
 
 (1) MAINTAIN DOCUMENTATIO N OF THE ASSESSMENT FOR AS LONG 
AS THE ONLINE PRODUC T IS LIKELY TO BE AC CESSED BY CHILDREN ; 
 
 (2) REVIEW EACH DATA PROT ECTION IMPACT ASSESS MENT AS 
NECESSARY TO ACCOUNT FOR MATERIAL CHANGES TO PROCESSING PERTAI NING TO 
THE ONLINE PRODUCT W ITHIN 90 DAYS OF SUCH MATERIA L CHANGES; 
 
 (3) CONFIGURE NOTWITHSTANDING ANY O THER LAW, CONFIGURE 
ALL DEFAULT PRIVACY SETTINGS PROVIDED TO CHILDREN BY THE ONLI NE 
PRODUCT TO OFFER A HIGH LEVEL OF PRIVACY , UNLESS THE COVERED E NTITY CAN  Ch. 460 	2024 LAWS OF MARYLAND  
 
– 20 – 
DEMONSTRATE A COMPEL LING REASON THAT A D IFFERENT SETTING IS IN THE BEST 
INTERESTS OF CHILDRE N; 
 
 (4) PROVIDE ANY PRIVACY I NFORMATION , TERMS OF SERVICE , 
POLICIES, AND COMMUNITY STANDA RDS CONCISELY, PROMINENTLY , AND USING 
CLEAR LANGUAGE SUITE D TO THE AGE OF CHIL DREN LIKELY TO ACCES S THE 
ONLINE PRODUCT ; AND 
 
 (5) PROVIDE PROMINENT , ACCESSIBLE, AND RESPONSIVE TOOLS TO 
HELP CHILDREN OR THE IR PARENTS OR GUARDI ANS, IF APPLICABLE, EXERCISE 
THEIR PRIVACY RIGHTS AND R EPORT CONCERNS . 
 
14–4606. 
 
 (A) A COVERED ENTITY THAT PROVIDES AN ONLINE P RODUCT THAT IS 
ACCESSED OR REASONAB LY LIKELY TO BE ACCE SSED BY CHILDREN MAY NOT: 
 
 (1) PROCESS THE PERSONAL DATA OF A CHILD IN A WAY THAT IS 
INCONSISTENT WITH TH E BEST INTERESTS OF CHILDREN REASONABLY LIKELY TO 
ACCESS THE ONLINE PR ODUCT; 
 
 (2) PROFILE A CHILD BY DE FAULT, UNLESS: 
 
 (I) THE COVERED ENTITY CA N DEMONSTRATE THAT T HE 
COVERED ENTITY HAS A PPROPRIATE SAFEGUARD S IN PLACE TO ENSURE THAT 
PROFILING IS CONSI STENT WITH THE BEST INTERESTS OF CHILDRE N WHO ACCESS 
OR ARE REASONABLY LI KELY TO ACCESS THE O NLINE PRODUCT ; AND 
 
 (II) 1. PROFILING IS NECESSAR Y TO PROVIDE THE 
REQUESTED ONLINE PRODUCT , AND IS DONE ONLY WIT H RESPECT TO THE ASP ECTS 
OF THE ONLINE PRODUC T THAT THE CHILD IS AC TIVELY AND KNOWINGLY ENGAGED 
WITH; OR 
 
 2. THE COVERED ENTITY CA N DEMONSTRATE A 
COMPELLING REASON TH AT PROFILING IS IN T HE BEST INTERESTS OF CHILDREN; 
 
 (3) PROCESS PERSONAL DATA OF A CHILD THAT IS N OT REASONABLY 
NECESSARY TO PROVID E AN ONLINE PRODUCT THAT THE CHILD IS AC TIVELY AND 
KNOWINGLY ENGAGED WI TH; 
 
 (4) PROCESS THE PERSONAL DATA OF A CHILD END USER FOR ANY 
REASON OTHER THAN A REASON FOR WHICH THA T PERSONAL DATA WAS 
COLLECTED;   	WES MOORE, Governor 	Ch. 460 
 
– 21 – 
 
 (5) PROCESS ANY PRECISE G EOLOCATION INFORMATIO N DATA OF A 
CHILD BY DEFAULT , UNLESS: 
 
 (I) THE COLLECTION OF THE PRECISE GEOLOCATION 
INFORMATION DATA IS STRICTLY NECESSAR Y FOR THE COVERED EN TITY TO 
PROVIDE THE ONLINE P RODUCT; AND 
 
 (II) THE PRECISE GEOLOCATI ON DATA IS PROCESSED ONLY FOR 
THE LIMITED TIME THAT IS NECESSA RY TO PROVIDE THE ON LINE PRODUCT ; 
 
 (6) PROCESS ANY PRECISE G EOLOCATION INFORMATION DATA OF A 
CHILD WITHOUT PROVID ING AN OBVIOUS SIGNA L TO THE CHILD FOR T HE DURATION 
THAT THE PRECISE GEO LOCATION INFORMATION DATA IS BEING COLLECTED ; 
 
 (7) USE DARK PATTERNS TO : 
 
 (I) CAUSE A CHILD TO PROV IDE PERSONAL DATA BE YOND 
WHAT IS REASONABLY E XPECTED TO PROVIDE T HE ONLINE PRODUCT ; 
 
 (II) CIRCUMVENT PRIVACY PR OTECTIONS; OR 
 
 (III) TAKE ANY ACTION THAT THE COVERED ENTITY K NOWS, OR 
HAS REASON T O KNOW, IS NOT IN THE BEST I NTERESTS OF CHILDREN WHO ACCESS 
OR ARE REASONABLY LI KELY TO ACCESS THE O NLINE PRODUCT ; OR 
 
 (8) PROCESS ANY PERSONAL DATA FOR THE PURPOSE OF 
ESTIMATING THE AGE O F A CHILD THAT IS AC TIVELY AND KNOWINGLY ENGAGED 
WITH AN ONLINE PRODUCT THAT IS NOT REASONABLY NECESSARY TO PROVIDE THE 
ONLINE PRODUCT ; OR 
 
 (9) ALLOW A PERSON OTHER THAN A CHILD’S PARENT OR GUARDIAN 
TO MONITOR THE CHILD ’S ONLINE ACTIVITY WI THOUT FIRST NOTIFYIN G THE CHILD 
AND THE CHILD’S PARENT OR GUARDIAN .; OR 
 
 (9) ALLOW A CHILD’S PARENT, GUARDIAN, OR ANY OTHER CONSUME R 
TO MONITOR THE CHILD ’S ONLINE ACTIVITY OR TRACK THE CHILD ’S LOCATION, 
WITHOUT PROVIDING AN OBVIOUS SIGNAL TO TH E CHILD WHEN THE CHI LD IS BEING 
MONITORED OR TRACKED . 
 
 (B) A COVERED ENTITY THAT PROVIDES AN ONLINE P RODUCT THAT IS 
ACCESSED OR REASONAB LY LIKELY TO BE ACCE SSED BY CHILDREN MAY ALLOW A 
CHILD’S PARENT OR GUARDIAN TO MONITOR THE CHILD ’S ONLINE ACTIVITY OR  Ch. 460 	2024 LAWS OF MARYLAND  
 
– 22 – 
TRACK THE CHILD ’S LOCATION, WITHOUT PROVIDING AN OBVIOUS SIGN AL TO THE 
CHILD WHEN THE CHILD IS BEING MONITORED O R TRACKED. 
 
 (C) IN MAKING A DETERMINA TION AS TO WHETHER A N ONLINE PRODUCT IS 
REASONABLY LIKELY TO BE ACCESSED BY CHILD REN, A COVERED ENTITY MAY NOT 
COLLECT OR PROCESS A NY PERSONAL DATA BEY OND WHAT IS REASONABLY 
NECESSARY TO MAKE TH E DETERMINATION . 
 
14–4607. 
 
 (A) WITHIN 5 BUSINESS DAYS AFTER RECEIVING A WRITTEN REQUEST FROM 
THE DIVISION, A COVERED ENTITY THA T PROVIDES AN ONLINE PRODUCT 
REASONABLY LIKELY TO BE ACCESSED BY CHILD REN SHALL PROVIDE TO THE 
DIVISION A LIST OF AL L DATA PROTECTION IM PACT ASSESSMENTS THE COVERED 
ENTITY HAS COMPLETED UNDER § 14–4604 OF THIS SUBTITLE. 
 
 (B) (1) WITHIN 7 BUSINESS DAYS AFTER RECEIVING A WRITTEN REQUEST 
FROM THE DIVISION, A COVERED ENTITY SHA LL PROVIDE TO THE DIVISION ANY 
DATA PROTECTION IMPA CT ASSESSMENT COMPLE TED UNDER § 14–4604 OF THIS 
SUBTITLE. 
 
 (2) THE DIVISION MAY EXTEND B EYOND 7 DAYS THE AMOUNT OF 
TIME ALLOWED FOR A C OVERED ENTITY TO PRO DUCE A DATA PROTECTI ON IMPACT 
ASSESSMENT . 
 
 (C) TO THE EXTENT THAT AN Y DISCLOSURE REQUIRED UNDER SUBSECTION 
(B) OF THIS SECTION INCL UDES INFORMATION SUB JECT TO ATTORNEY –CLIENT 
PRIVILEGE OR WORK –PRODUCT PROTECTION , THE DISCLOSURE MAY N OT 
CONSTITUTE A WAIVER OF THAT PRIVILEGE OR PROTECTION. 
 
14–4608. 
 
 (A) A VIOLATION OF THIS S UBTITLE: 
 
 (1) IS AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICE; AND 
 
 (2) EXCEPT FOR § 13–410 OF THIS ARTICLE , IS SUBJECT TO THE 
ENFORCEMENT PROVISIO NS CONTAINED IN TITLE 13 OF THIS ARTICLE. 
 
 (B) A COVERED ENTITY THAT VIOLATES THIS SUBTIT LE IS SUBJECT TO A 
CIVIL PENALTY NOT EX CEEDING: 
   	WES MOORE, Governor 	Ch. 460 
 
– 23 – 
 (1) $2,500 PER AFFECTED CHILD F OR EACH NEGLIGENT VI OLATION; 
AND 
 
 (2) $7,500 PER AFFECTED CHILD F OR EACH INTENTIONAL 
VIOLATION. 
 
 (C) THE DIVISION SHALL PAY AL L FINES, PENALTIES, AND EXPENSES 
COLLECTED BY THE DIVISION UNDER THIS S UBSECTION INTO THE GENERAL FUND 
WITH THE INTENT THAT FINES, PENALTIES, AND EXPENSES BE USED TO FULLY 
OFFSET ANY COSTS INC URRED BY THE DIVISION IN CONNECTIO N WITH THIS 
SUBTITLE. 
 
14–4609. 
 
 (A) IF A COVERED ENTITY I S IN SUBSTANTIAL COM PLIANCE WITH THE 
REQUIREMENTS OF §§ 14–4604 THROUGH 14–4606 OF THIS SUBTITLE , THE 
DIVISION SHALL PROVID E WRITTEN NOTICE TO THE COVERED ENTITY B EFORE 
FILING AN ACTION UND ER § 14–4608 OF THIS SUBTITLE . 
 
 (B) NOTICE GIVEN UNDER SU BSECTION (A) OF THIS SECTION SH ALL 
IDENTIFY THE SPECIFI C PROVISIONS OF THIS SUBTITLE THAT THE DIVISION 
ALLEGES HAVE BEEN OR ARE BEING VIOLATED . 
 
 (C) A COVERED ENTITY MAY N OT BE LIABLE FOR A C IVIL PENALTY FOR A 
VIOLATION FOR WHICH NOTICE IS GIVEN UNDE R SUBSECTION (A) OF THIS SECTION 
IF THE COVERED ENTITY : 
 
 (1) HAS COMPLETED A DATA PROTECTION IMPACT AS SESSMENT 
UNDER § 14–4604(A)(2) OF THIS SUBTITLE FOR EXISTING ONLINE PROD UCTS THAT 
ARE REASONABLY LIKEL Y TO BE ACCESSED BY CHILDREN; 
 
 (2) HAS COMPLETED A DATA PROTECTION IMPACT AS SESSMENT 
UNDER § 14–4604(A)(3) OF THIS SUBTITLE PRI OR TO OFFERING TO TH E PUBLIC A 
NEW ONLINE PRODUCT T HAT IS REASONABLY LI KELY TO BE ACCESSED BY 
CHILDREN; 
 
 (3) CURES THE VIOLATION S PECIFIED IN THE DIVISION’S NOTICE 
WITHIN 90 DAYS AFTER ISSUANCE OF THE NOTICE UND ER SUBSECTION (A) OF THIS 
SECTION; 
 
 (4) PROVIDES THE DIVISION WITH A WRITT EN STATEMENT THAT TH E 
ALLEGED VIOLATION HA S BEEN CURED; AND 
  Ch. 460 	2024 LAWS OF MARYLAND  
 
– 24 – 
 (5) TAKES MEASURES TO PRE VENT ANY FUTURE VIOL ATION THAT 
THE DIVISION AGREED TO BE SUFFICIENT. 
 
14–4610. 
 
 NOTHING IN THIS SUBTITLE MAY BE INTERPRETED OR CONST RUED TO: 
 
 (1) PROVIDE A PRIVATE RIG HT OF ACTION UNDER T HIS SUBTITLE OR 
ANY OTHER LAW ; 
 
 (2) IMPOSE LIABILITY IN A MANNER THAT IS INCON SISTENT WITH 47 
U.S.C. § 230; 
 
 (3) PREVENT OR PRECLUDE A CHILD FROM DELIBERATELY OR 
INDEPENDENTLY SEARCH ING FOR OR SPECIFICA LLY REQUESTING CONTE NT; OR 
 
 (4) REQUIRE A COVERED ENT ITY TO IMPLEMENT AN AGE–GATING 
REQUIREMENT . 
 
14–4611. 
 
 NOTWITHSTANDING ANY O THER LAW , A DATA PROTECTION IM PACT 
ASSESSMENT IS PROTEC TED AS CONFID ENTIAL AND SHALL BE EXEMPT FROM 
PUBLIC DISCLOSURE , INCLUDING UNDER THE MARYLAND PUBLIC INFORMATION 
ACT. 
 
14–4612. 
 
 (A) WHEREVER POSSIBLE , LAW RELATING TO CONS UMERS’ PERSONAL 
DATA SHOULD BE CONST RUED TO HARMONIZE WI TH THE PROVISIONS OF THIS 
SUBTITLE. 
 
 (B) IN THE EVENT OF A CON FLICT BETWEEN OTHER LAWS AND THIS 
SUBTITLE, THE PROVISIONS OF TH E LAW THAT AFFORD TH E GREATEST PROTECTIO N 
FOR THE RIGHT OF PRI VACY FOR CONSUMERS S HALL CONTROL . 
 
14–4613.  
 
 THIS SUBTITLE MAY BE CITED AS THE MARYLAND AGE–APPROPRIATE 
DESIGN CODE ACT. 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 
October 1, 2024.  
   	WES MOORE, Governor 	Ch. 460 
 
– 25 – 
Approved by the Governor, May 9, 2024.