South Carolina House Bill H3402

South Carolina 2025-2026 Regular Session

• Introduced: 1/14/25
• Refer: 1/14/25

Caption

Age-Appropriate Design

Impact

This bill establishes significant regulatory measures for businesses operating online services that cater to children. It defines 'covered entities' broadly, affecting companies with substantial revenue or user bases. Under the proposed law, these entities are mandated to conduct data protection impact assessments and ensure that their services are compliant with the requirements that safeguard children's data. This shift is poised to enhance the protection of minors in the digital space and would likely lead to increased compliance costs and operational changes for tech companies.

Summary

House Bill 3402, titled the 'South Carolina Age-Appropriate Design Code Act,' seeks to amend the South Carolina Code of Laws by introducing Chapter 79 to Title 39. This legislation aims to protect children under the age of eighteen by ensuring that online services, products, and features are designed in consideration of their unique developmental needs. The bill establishes requirements for covered entities related to data collection, privacy settings, and implements a system for data protection impact assessments tailored to online content accessed by children. The act emphasizes that the best interests of children must prevail in the handling of their personal data.

Contention

However, the bill is not without contention. Supporters argue that it is a critical step in addressing the exploitation of children's data and enhancing their safety online during formative years. Critics raise concerns about the potential burdens imposed on small businesses that may struggle to meet the strict compliance requirements, which could lead to reduced accessibility to valuable online services for children. Additionally, the definition of 'age-appropriate' and the scope of covered entities have sparked debates among stakeholders regarding the balance between privacy protection and innovation in digital services.