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LB 504

Adopt the Age-Appropriate Online Design Code Act

109th Legislature (2025-2026) Introduced by Carolyn Bosn

Nebraska LB 504 requires age-appropriate online design to protect children and minors, bans targeted ads to under 18, curbs dark patterns, adds parental controls and penalties.

Approved by Governor on May 30, 2025
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Bill Summary · LB 504

Summary — LB 504: Age-Appropriate Online Design Code Act (2025)

Status: Approved by the Governor May 30, 2025 (Passed Final Reading 42–7)
Introduced: January 21, 2025 (Sponsor: Sen. Carolyn Bosn)
Operative date: Act provisions expected to become operative January 1, 2026 (as described in committee materials)

Main purpose

LB 504 adopts the "Age-Appropriate Online Design Code Act" to provide heightened protections for children (under 13) and minors (under 18) when they use online services. The law limits design features and data practices that can encourage compulsive use or exploit young users, increases parental control and transparency, and restricts targeted advertising to minors.

Key provisions

  • Covered online services: applies to entities that conduct business in Nebraska and meet one or more thresholds such as annual gross revenue > $25 million (adjusted biennially to the Consumer Price Index and rounded to the next $1,000), annually buying/receiving/selling/sharing personal data for ≥50,000 consumers/households/devices, or deriving ≥50% of revenue from sale/sharing of personal data. Services with actual knowledge that fewer than 2% of users are minors may be excluded; several other narrow exemptions apply (e.g., certain telecom/broadband services and continuous-flow licensed streaming services).
  • Definitions: child = under 13; minor = under 18; “covered design features” include elements that increase time or activity (examples: infinite scroll, rewards/incentives for use, push notifications, in‑game purchases, appearance‑altering filters).
  • Prohibited or restricted practices for covered online services regarding minors:
    • Prevent tracking and profiling of children for targeted advertising and content personalization;
    • Prohibit targeted advertising to minors (with limited contextual or in‑service exceptions);
    • Require reasonable care in design/implementation of features to prevent harms (mental‑health harms, compulsive usage patterns, cyberbullying, sexual exploitation, predatory marketing, deceptive financial harms);
    • Provide parental controls and tools for monitoring and limiting a child’s account and experience;
    • Require annual public reporting by covered services on compliance.
  • Data and location rules: personal and sensitive data definitions are specified and precise geolocation of covered minors is restricted (statute defines a specific proximity threshold for “precise geolocation”).
  • Dark patterns: defines and prohibits interface designs that substantially subvert user autonomy; incorporates FTC-defined dark patterns (as of Jan 1, 2024).

Enforcement & penalties

  • Enforcement primarily by the Nebraska Attorney General, who is granted investigative and rulemaking authority.
  • Civil penalties: covered online services may be liable up to $50,000 per violation (amendments specify that collected penalties are remitted to the State Treasurer in accordance with Nebraska Constitution Article VII, §5).

Who is affected

  • Directly: large online platforms and digital services that meet the statutory thresholds (advertising‑driven platforms, data brokers, social media services, app providers).
  • Indirectly: advertisers, parents and guardians (gain tools/rights), and minors (receive increased protections and reduced exposure to targeted/adaptive engagement tactics).

Legislative/timing notes

  • Committee and floor amendments refined definitions, added exemptions (e.g., certain streaming services), clarified “reasonable care” duties, and set penalty remittance rules.
  • The bill advanced through Banking, Commerce & Insurance Committee with amendments, passed final reading, and was enrolled and signed into law May 30, 2025.

This law will require affected companies to review and likely change data-collection, ad-targeting, algorithmic personalization, UI/UX elements, and parental‑control functionality to comply.

Compiled from official sources — confirm details with the bill’s official record.

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