Technology (Online Safety)

This bill amends existing state consumer protection laws to add requirements for age verification and parental consent for application stores, which are digital platforms where users download software applications. The legislation would require these stores to verify the age of users and obtain parental consent from minors before allowing them to access or download applications. It also establishes penalties for businesses that fail to comply with these new verification and consent requirements. The bill does not create new consumer protection categories but rather modifies existing deceptive trade practices provisions to include digital application store compliance.

SB 168 regulates chatbots used by minors in South Dakota. It prohibits deployers (companies or developers) from making AI-companion chatbots - designed to form emotional bonds - available to minors without age verification (e.g., checking ID). Instead, deployers must implement age verification for such chatbots or remove all human-like features to allow minor access. Therapy chatbots may be offered to minors only with clear disclaimers, clinical evidence of safety/efficacy, and oversight by a licensed mental health professional who assesses suitability and monitors use. The bill also requires emergency response systems for crisis situations and limits data collection to necessary purposes.

HB 1237 requires app stores and developers to verify the age of users before they can access applications, with specific rules for children under 16. App stores must determine age, obtain parental consent for minors, provide digital age signals (e.g., 13-15 or 16-17), and enable parental controls for time limits and activity monitoring. The law directly affects app stores (manufacturers), app developers, and users under 16, applying to platforms distributing apps like mobile app stores. Violations could result in $5,000 civil penalties per affected child, enforced by state attorneys general.