ASSEMBLY SCIENCE, INNOVATION AND TECHNOLOGY COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4015

STATE OF NEW JERSEY

DATED:  FEBRUARY 19, 2026

      The Assembly Science, Innovation and Technology Committee reports favorably Assembly Bill No. 4015.

      As reported, this bill, which is designated as the “New Jersey Kids Code Act” and to be cited as the “Age-Appropriate Design Code for New Jersey,” requires a covered online service provider, as defined in the bill, to implement certain measures to protect minors’ online privacy.  Under the bill, covered online service providers are required to provide a user that the covered online service provider knows to be a minor (covered minor) with default settings for safeguards at the option or level that provides the highest protection available for the safety of the covered minor, and are prohibited from reducing or prompting a covered minor to reduce certain privacy settings.  The bill also creates requirements and prohibitions concerning the collection and use of covered minors’ personal data.

      The bill establishes certain prohibitions for covered online service providers concerning covered minors, including, but not limited to prohibiting covered online service providers from facilitating targeted advertising to a covered minor, sending notifications to covered minors at certain specified times, profiling a covered minor except in certain circumstances, facilitating advertisements for prohibited products to covered minors, and using dark patterns.

      Additionally, under the bill, a covered online service provider is required to issue an annual report including:  (1) a detailed description of the online service as pertaining to minors, including the online service’s covered design features, use of personal data, and business practices; (2) the purpose of the online service; (3) the extent to which the online service is likely to be accessed by minors; (4) whether, how, and for what purpose the covered online service provider processes minors’ personal data and sensitive personal data; (5) the design safety features for minors, the privacy protections for minors, and the tools for parents that the covered online service has adopted; (6) whether and how the online service used covered design features; (7) the covered online service provider’s process for handling data access, deletion, and correction requests for minors’ data; (8) age assurance, age verification, or age estimation methods used; (9) whether and how the covered online service provider utilized algorithms; and (10) if the covered online service provider uses a covered design feature, the average daily time spent on the online service by covered minors for the 90th, 95th, 99th, and 99.9th percentile of covered minors.

      The bill further requires covered online service providers to engage independent third-party auditors for preparing annual reports.  Under the bill, a covered online service provider is required to prominently post the annual report on the covered online service provider’s Internet website.

      The bill also amends certain provisions of current law concerning data privacy, including amending the definitions of “personal data,” “sensitive data,” and “targeted advertising” under N.J.S.A.56:8-166.4.

      The bill provides that a violation of the provisions of the bill constitutes an unfair and deceptive act under the New Jersey consumer fraud act.