An act relating to the regulation of social media platforms and artificial intelligence systems

H 365 requires social media platforms and artificial intelligence (AI) providers operating in Vermont to annually register with the Secretary of State by January 31, pay a $100 fee, and submit privacy policies. The bill directly affects companies using platforms or AI systems with Vermont residents, mandating they avoid harmful design features for minors (like excessive use prompts), set high default privacy settings, block unknown adult contact without minor-initiated interaction, and prohibit using minors' data for targeted advertising. Providers must also comply with "product safety and privacy terms" focused on preventing algorithmic discrimination and "heightened risk of harm" to minors, including unfair data processing. Violations can trigger daily $50 fines (capped at $10,000 annually) and civil penalties enforced by the Attorney General.