Bill
HB 860
NC HB 860 bars use of minors' data for ads or ranking by major social platforms and requires explicit opt-in privacy controls; willful violations become unfair trade practices.
Status (as provided)
- Reported Favorable Committee Substitute (Reptd Fav Com Substitute)
- Introduced: Nov. 12, 2024 (filed/prefiled in late 2024); active in 2025 committee process
- Referred to Commerce & Economic Development; Appropriations (if favorable)
- Bill title and text refer to adding a new Article to Chapter 75 (Unfair and Deceptive Trade Practices)
Purpose / Intent
- To reduce social‑media addiction and protect minors by restricting how covered social media platforms collect and use personal data of North Carolina residents — with special protections for minors — and to make willful violations an unfair business practice under Chapter 75.
- To require platforms to give easy, accessible privacy controls (including opt‑in for certain practices) and to fund implementation and enforcement.
Key definitions (selected)
- Social media platform / covered platform: an electronic medium with >1,000,000 monthly active U.S. users that functions as a social media service (exclusions: common‑carrier services, ISPs, email, search engines, many messaging services, certain gaming and e‑commerce services).
- Minor: under 18 years of age.
- Personal information: broadly defined (identifiers, browsing and usage data, geolocation, biometric data, education, financial data, inferences, etc.).
- Algorithmic recommendation system: systems using machine learning/AI that rank, promote, recommend, amplify, or determine delivery of content.
- Accessible mechanism / Opt‑in mechanism: user‑friendly, separate means for users to exercise privacy rights and to consent affirmatively to specific practices.
Major substantive provisions
- Prohibitions on use of minor data: Platforms may not use a North Carolina minor’s personal information for advertising or for algorithmic recommendations (i.e., for content‑ranking/recommendation algorithms).
- Consent and controls: Platforms must offer accessible, clear opt‑in mechanisms separate from general terms of service for narrowly defined, specified data practices; default settings cannot be pre‑tuned to permissive collection/use.
- Transparency/notice: The Division (text references Division of Health Service Regulation for rulemaking on certain notice/consent details) may specify required language and disclosures, including warnings about manipulative algorithms.
- Enforcement classification: Willful violations of the Act are treated as an unfair practice under Chapter 75 — enabling enforcement tools available under that chapter (Attorney General actions, civil remedies, injunctive relief, and penalties provided under Chapter 75).
- Appropriation: The bill title and text indicate funds are appropriated to support implementation/enforcement (no dollar amount in the excerpt provided).
Who would be affected
- Covered social media platforms (major U.S. platforms with >1M monthly active users) — changes to data collection, ad targeting, and recommendation algorithms for NC users.
- Minors (residents of NC) — stronger privacy protections and limitations on exposure to algorithmically recommended content and ads.
- Parents and guardians — enhanced consent and opt‑in mechanisms, and ability to exercise data privacy rights for minors.
- Advertisers and third‑party data processors doing targeted advertising to NC minors — restrictions on that activity.
- State enforcement agencies (e.g., Attorney General) — new duties and enforcement authority under Chapter 75; some administrative and fiscal effects anticipated (implementation, oversight, possible appropriation).
Potential impacts and considerations
- Compliance costs for covered platforms to adjust targeting, ad systems, and recommendation algorithms for NC users (technical segmentation by geography/age).
- Possible reduction in targeted advertising revenues tied to use of minor data.
- Enforcement resource needs for State (amounts/approach depend on appropriations and administrative rules).
- Legal interaction with federal laws (e.g., COPPA) and platform terms; the bill targets willful violations and treats breaches as unfair trade practices.
Note: This summary is based on the bill text excerpts provided (article added to NC Gen. Stat. ch. 75) and related legislative materials. The full bill text and committee reports should be consulted for precise regulatory language, enforcement provisions, and any appropriations or penalty schedules not included in the excerpt.
Compiled from official sources — confirm details with the bill’s official record.
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