Maryland Enacts Minor Privacy Statute

Maryland's governor recently signed the Age Appropriate Design Code, known as the Kids Code. The statutory system imposes strict regulations on online service providers to protect children's online privacy. Providers with online products likely to be accessed by children must conduct a data protection impact assessment (DPIA), monitor guardians, and avoid harmful data collection practices.

Starting October 1, 2024, companies must adhere to these rules, with potential fines of up to $2,500 per child for negligent violations and $7,500 per child for intentional violations. Companies have until the following year to comply with the Online Data Privacy Act.

Maryland joins California with statutes aimed at protecting children's online activities. Maryland crafted to withstand free speech challenges brought against the California law, but legal challenges are inevitable. It will be interesting to see which challenges prevail and which other states join these two.