Maryland Gov. Wes Moore signed two measures into law Thursday that aim to better protect personal data online from Big Tech companies, including a bill that makes Maryland the second state to try to create strict limits on information collected about children.
The measure, known as Maryland Children's Code, seeks to limit the data that could be collected from children online and protect them from being inundated with harmful material they were not trying to find.
“Look, the bottom line is that Big Tech has been taking advantage and victimizing our children for too long,” said state Sen. Ben Kramer, a Democrat from the suburbs of the nation's capital.
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Big tech companies tried to assure lawmakers that the industry could fix the problem without government interference, Kramer said. “But the fact of the matter is that leaving the fox guarding the henhouse has left Big Tech fat and greedy, because they have prioritized cash over our children,” the senator said.
Supporters say the new law aimed at protecting children was designed to withstand court challenges like the one that stopped a California law. For example, the measure incorporates case law and established consumer protection laws, supporters said.
Carl Szabo, vice president and general counsel of NetChoice, said the group shares lawmakers' desire to better protect children online. “But this goal can be achieved in ways that do not violate the Constitution and leave behind a litany of serious and unintended consequences,” he said.
NetChoice is a trade association whose members include Google, Amazon, Meta and TikTok. He challenged California law.
“Unfortunately, the law Governor Moore signed today will not achieve its goal: creating a safer online environment for Maryland's youth. An unconstitutional law will not keep anyone safe. By discounting the rights and privacy of its citizens, the Maryland legislators have unfortunately signed on to a path that will make things worse for everyone, especially children,” Szabo said in an email.
Under the law, companies would not be able to create a profile of a child by default, with some limited exceptions, or process personal data that is not reasonably necessary to provide an online product with which the child actively and knowingly participates.
Del. Jared Solomon, the bill's sponsor, said lawmakers were careful to make sure the measure is not aimed at moderating available content. He said protective language was added to ensure that a child cannot be prevented from searching for content online.
“If you want to go and look up things that you probably shouldn't look at, we're not going to delete them from the Internet,” said Solomon, a Democrat from Montgomery. “But what we're telling companies is that they shouldn't essentially hoard data on someone and make assumptions that that's the content they want to see.”
Design It For Us, a coalition that advocates for safer social media and online platforms for children, praised the new law.
“We hope this brings urgency to other states to pass and adopt much-needed Children's Code legislation and end Big Tech's power over our security and privacy,” said Zamaan Qureshi, co-chair of the group.
The governor, a Democrat, also signed the Maryland Online Data Privacy Act of 2024.
The new law will impose certain obligations on companies to protect an individual's personal information. For example, a company in possession of personal information must implement and maintain security procedures and practices to protect the information from unauthorized access, use, modification or disclosure.
“It puts barriers on how much data companies can collect about people online and also what they do with that data, and it gives consumers more control over their own data,” said Del. Sara Love, a Democrat. of Montgomery County who sponsored the measure.
The new law will also create consumer protections and rights, as well as disclosure obligations, related to online personal data controlled or processed by certain entities that conduct business in Maryland or provide services or products directed to residents of the state.
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A consumer will also have the right to opt out of the processing of personal data for the purposes of targeted advertising, sale of personal data and certain profiling activities.