Bill aimed at protecting youth online passed

A proposal meant to protect children’s private information and provide parental tools to monitor their online safety was given final approval May 28.

LB504, introduced by Lincoln Sen. Carolyn Bosn at the request of Gov. Jim Pillen, creates the Age-Appropriate Online Design Code Act. Under the act, a covered online service is required to protect user data of known minors — defined as those under age 18 — and provide options to limit certain design features.

A covered online service is defined as one that has minors as more than 2% of its total users, which operates in Nebraska and meets certain revenue or data volume thresholds. The bill does not apply to government entities.

Among other provisions, the bill requires a covered online service to provide covered minors with “easy-to-use” tools that prevent other individuals from viewing a minor’s personal data and limit covered design features.

Certain covered design features — including infinite scroll, rewards or incentives, push alerts and appearance-altering filters — are prohibited for users younger than 13.

Parents will be provided with the ability to view, manage and control a child’s privacy and account settings and restrict their ability to make in-app purchases and other financial transactions.

Violations of the act will constitute a deceptive trade practice under the Uniform Deceptive Trade Practices Act. Beginning July 1, 2026, a covered service could receive a civil penalty of not more than $50,000 per violation.

Senators passed LB504 on a vote of 42-7.