New Jersey Signs Kids Code Act to Mandate 'Safety-by-Design' for Social Media

Governor Mikie Sherrill has signed a package of three bills, including the Kids Code Act (A4015), to protect minors from the harmful effects of social media. The legislation marks a pivot in state regulation by mandating a "safety-by-design" approach for digital platforms.

The Kids Code Act requires social media companies to prioritize the best interests of children over profit and screen time. Under the new law, platforms are banned from serving targeted advertising to minors and must implement the highest default privacy settings for all minor accounts. Additionally, the legislation limits the volume of data companies can collect from children and requires that children's accounts be shielded from adult users. To support these efforts, the package also establishes a Social Media Research Center via bill A4014 to study the addictive features of digital technology and their impact on youth.

A Shift in Regulatory Strategy

This legislative push is part of a growing national and global movement to regulate "Big Tech" in the interest of youth mental health, mirroring similar efforts in Australia and Florida. The New Jersey law arrives as 29 U.S. states pursue a massive lawsuit against Meta, alleging the company intentionally designed addictive features that harm children.

Notably, the law attempts to steer platforms toward implementing age-verification measures without formally mandating them. According to the legislation's framework, this approach is intended to avoid potential First Amendment challenges that have plagued similar laws in other jurisdictions.

Implications for Big Tech

By shifting the burden of safety from parents to the platforms themselves, New Jersey is attempting to establish a legal standard where privacy and safety are the default rather than optional settings. Governor Sherrill emphasized this shift, calling for "safety over screentime and privacy over profit."

This represents a significant regulatory shift in how state governments hold social media companies accountable for the psychological impact of their algorithms. Rather than relying on parental controls, the state is now demanding that the architecture of the platforms be fundamentally altered to protect vulnerable users.

What to Watch

As the Kids Code Act takes effect, the industry will be watching how the state enforces "safety-by-design" without explicit age-verification mandates. The effectiveness of the newly created Social Media Research Center will also be critical in determining if future legislation will target specific addictive features of social media algorithms.