What's Happening?
South Carolina has implemented the Age Appropriate Design Code Act, a comprehensive privacy law aimed at protecting minors online. The Act prohibits targeted advertising to minors and restricts profiling without explicit consent. It mandates annual independent
compliance audits, with reports to be publicly posted. The law took effect immediately upon its enactment in February 2026, requiring the first audit reports by July 1, 2026. The Act applies to entities meeting certain revenue or data-processing thresholds and those providing services likely accessed by minors. It includes strict data minimization and transparency requirements, and offers robust parental controls. The law is enforced under the South Carolina Unfair Trade Practices Act, with potential personal liability for violations.
Why It's Important?
The Act represents a significant shift in digital privacy regulation, particularly concerning minors. By imposing stringent controls and penalties, South Carolina sets a precedent that could influence other states. The law's immediate effect and aggressive enforcement could lead to increased compliance costs for businesses operating in the state. It also highlights the growing emphasis on protecting children's data privacy, potentially prompting similar legislative efforts nationwide. Companies must now navigate complex compliance landscapes, balancing business interests with legal obligations to protect minors' privacy.
What's Next?
The legal challenge by trade association NetChoice, which seeks to block the Act on constitutional grounds, could impact its enforcement. The outcome of this case may influence future privacy legislation and enforcement strategies. Businesses must prepare for potential changes in compliance requirements and consider the implications of similar laws in other jurisdictions. The South Carolina Attorney General's ongoing enforcement efforts will likely shape the state's privacy landscape and could serve as a model for other states considering similar measures.
