S1982

An Act requiring age verification and parent or guardian consent for a minor’s use of a social media platform and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Account holder” means an individual who has or who creates an account or profile on a social media platform.

“Adding” means a distinction from other users concerning the interaction of two separate social media accounts, at the mutual election of the account holders, by which the two account holders’ settings enable them to view one another’s posts. The term may also include any designation that enables direct messaging between the two accounts when such accounts do not permit such messaging with other users generally. “Adding” includes, but is not limited to, friending, following, or similar actions.

“Director” means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.

“Division” means the Division of Consumer Affairs established within the Department of Law and Public Safety pursuant to P.L.1971, c.134 (C.52:17B-118 et seq.).

“Educational entity” means a school district, charter school, renaissance school, non-public school, or institution of higher education.

“Individual” means a natural person.

“Minor” means an individual who is under the age of 18.

“New Jersey account holder” means an individual who is a New Jersey resident and an account holder. “New Jersey account holder” includes a “New Jersey minor account holder.”

“New Jersey minor account holder” means a New Jersey account holder who is a minor.

“Person” means any individual, business, or other legal entity and its agents, assignees, or representatives.

“Post” means content that an account holder makes available on a social media platform for other account holders or users to view.

“Social media company” means a person that provides or operates a social media platform with at least five million account holders worldwide.

“Social media platform” or “platform” means a public or semipublic internet-based service or application that has users in this State, which service or application: a. allows users to construct a public or semipublic profile for the purposes of using the platform, populate a list of other users with whom the user shares a social connection through the platform, and post content viewable by other users of the platform; and b. is designed to connect users within the platform to facilitate social interactions, except that a service or application that provides email or direct messaging services shall not be considered to meet this criterion solely based on the existence of that functionality. “Social media platform” shall not include an Internet-based service or application for which interactions between users are solely related to the provision of direct messages, commercial and financial transactions, peer-to-peer payments, consumer engagement around products, product reviews, sellers, services, events, or places, or any combination thereof.

“User” means a person with access to view all or some of the posts on a social media platform, which person is not an account holder.

2. a. A social media company shall not permit a New Jersey resident who is a minor to be an account holder on the social media company’s social media platform unless the minor has obtained the express consent of a parent or guardian.

b. To provide express consent pursuant to subsection a. of this section, the parent or guardian of a minor shall provide the parent or guardian’s government-issued identification and credit card information to the social media company and consent to a fee of not more than 35 cents to be charged to the credit card provided.

c. Notwithstanding any provision of P.L. , c. (C. ) (pending before the Legislature as this bill), a social media company shall not permit a New Jersey resident who is a minor to hold or open an account on a social media platform if the minor is ineligible to hold or open an account pursuant to any other provision of State or federal law.

3. a. A social media company shall verify the age of an existing or new New Jersey account holder and, if the existing or new account holder is a minor, confirm that a minor has obtained expressed consent from the parent or guardian of the minor pursuant to subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill):

(1) for a new account, at the time the New Jersey resident opens the account; or

(2) for a New Jersey account holder who has not provided age verification as required pursuant to this section, within 14 calendar days of the New Jersey account holder's attempt to access the account.

b. If a New Jersey account holder fails to meet the age verification requirements of this section within the required time period, the social media company shall deny access to the account:

(1) upon the expiration of the time period; and

(2) until all verification requirements are met.

4. For a social media platform account held by a New Jersey minor account holder, a social media company:

a. shall prohibit direct messaging between the account and any other adult user that is not linked to the account through adding on the social media platform; and

b. shall not collect or use any personal information from the posts, content, messages, text, or usage activities of the account other than information that is necessary to comply with, and to verify compliance with, State or federal law, which information includes a parent or guardian's name, a birth date, and any other information required to be submitted pursuant to subsection b. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. a. The division shall receive consumer complaints alleging a violation of, investigate alleged violations of, and enforce P.L. , c. (C. ) (pending before the Legislature as this bill) as outlined in this section. All civil penalties in this section shall be collected by the director in a summary proceeding before a court of competent jurisdiction pursuant to the provisions of the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).

b. Subject to the conditions of subsection d. of this section, the director may impose a civil penalty in an amount not to exceed $2,500 for each violation of P.L. , c. (C. ) (pending before the Legislature as this bill).

c. Subject to the conditions of subsection d. of this section, the director may initiate a civil action to enforce P.L. , c. (C. ) (pending before the Legislature as this bill) in the Superior Court.

(1) A court presiding in an action initiated pursuant to this subsection may:

(a) declare that an act or practice constitutes a violation of
P.L. , c. (C. ) (pending before the Legislature as this bill);

(b) issue an injunction against further violation of P.L. ,
c. (C. ) (pending before the Legislature as this bill);

(c) order disgorgement, for payment to an individual who is identified by the court as an injured user or injured account holder, of any money received in connection with a violation of P.L. ,
c. (C. ) (pending before the Legislature as this bill);

(d) impose a civil penalty in an amount not to exceed $2,500 for each violation of P.L. , c. (C. ) (pending before the Legislature as this bill);

(e) award actual damages to an injured user or injured account holder; and

(f) award any other relief the court deems reasonable and necessary.

(2) If a court grants judgment or injunctive relief in an action initiated pursuant to this subsection, the court shall award the division reasonable attorney fees, court costs, and investigative fees.

d. (1) At least 30 days prior to initiating an enforcement action against a person pursuant to subsection b. or c. of this section, the division shall provide the person with a written notice identifying and explaining the basis for each alleged violation of P.L. ,
c. (C. ) (pending before the Legislature as this bill).

(2) Except as provided in paragraph (3) of this subsection, the division shall not initiate an enforcement action against a person pursuant to subsection b. or c. of this section if that person:

(a) cures the violation within 30 days after receiving notice pursuant to paragraph (1) of this subsection; and

(b) provides the division with a written statement that the person has cured the violation and that no further violation will occur.

(3) Notwithstanding any provision of this section to the contrary, the division may initiate a civil action pursuant to subsection c. of this section against a person that:

(a) fails to cure a violation after receiving notice pursuant to paragraph (1) of this subsection; or

(b) commits another violation of the same provision of P.L. ,
c. (C. ) (pending before the Legislature as this bill) after meeting the conditions of paragraph (2) of this subsection for a prior noticed violation.

e. The division shall be entitled to such penalties, fines, or fees as may be authorized pursuant to this section in any successful enforcement action pursuant to this section for a violation of
P.L. , c. (C. ) (pending before the Legislature as this bill).

6. a. An individual may bring an action against a social media company that does not comply with any provision of P.L. , c. (C. ) (pending before the Legislature as this bill). An action pursuant to this subsection shall be brought in the Superior Court of the county in which the individual bringing the action resides.

b. If a court finds that a person has failed to comply with any provision of P.L. , c. (C. ) (pending before the Legislature as this bill), the individual bringing an action pursuant to subsection a. of this section shall be entitled to:

(1) reasonable attorney fees and court costs; and

(2) an amount equal to the greater of:

(a) $2,500 per instance of violation; or

(b) actual damages for financial, physical, or emotional harm incurred by the individual bringing the action pursuant to subsection a. of this section, if the court determines that the harm is a direct consequence of the violation or violations.

7. A waiver or limitation of any of the following shall be void as against public policy and shall not be enforced or given legal effect, notwithstanding any contract or choice-of-law provision therein:

a. any protection or requirement included in P.L. ,
c. (C. ) (pending before the Legislature as this bill);

b. the right to cooperate with the division and to file a complaint with the division in connection with an investigation, alleged violation, or other proceeding pursuant to any provision of P.L. , c. (C. ) (pending before the Legislature as this bill) and regulations established by the division pursuant to its authority; or

c. the right to file a private right of action pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).

8. The division shall submit an annual report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), that evaluates the division’s ability to reduce the unconsented use of social media platforms by minors and enforce the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). The report shall include, at minimum, a list of the:

a. alleged violations the division has received during the year;

b. administrative fines and civil penalties assessed during the year; and

c. administrative fines and civil penalties collected during the year.

9. This act shall take effect immediately.

STATEMENT

This bill prohibits a social media company (company) from permitting a New Jersey resident who is a minor to be an account holder on the company’s platform unless the minor has obtained the express consent of a parent or guardian. To provide express consent, the parent or guardian is required to provide credit card information to the social media company and consent to a fee of not more than 35 cents to be charged to the credit card provided.

The bill also requires a company to verify the age of an existing or new account holder and, if the existing or new account holder is a minor, confirm that a minor has obtained express consent from a parent or guardian in accordance with the bill’s provisions: (1) for a new account, at the time the resident opens the account; or (2) for an account holder who has not provided age verification, within 14 calendar days of the account holder's attempt to access the account. If an account holder fails to meet the age verification requirements within the required time period, the company is required to deny access to the account: (1) upon the expiration of the time period; and (2) until all verification requirements are met.

The bill requires a company, for a social media platform account held by a minor account holder, to: (1) prohibit direct messaging between the account and any other adult user that is not linked to the account through adding on the social media platform; and (2) not collect or use any personal information from the posts, content, messages, text, or usage activities of the account other than information that is necessary to comply with, and to verify compliance with, State or federal law, which information includes a parent or guardian's name, a birth date, and any other information required to be submitted to provide express consent.

The Division of Consumer Affairs (division) is responsible for enforcement of the bill’s provisions. The division is required to receive consumer complaints related to, investigate alleged violation of, and enforce the provisions of this bill. The division is entitled to any penalties, fines, or fees collected for a violation.

The division is authorized to impose a civil penalty of up to $2,500 for each violation or to initiate a civil suit in Superior Court. In addition, an individual may bring an action in the Superior Court against a company, for failure to comply with the provisions of this bill. If the individual’s suit is successful, an individual is entitled to reasonable attorney fees and court costs. An individual is also entitled to either actual damages or $2,500, whichever is greater.