SC S404: Social media regulation Verified

The bill introduces Section 63-5-380 to the South Carolina Code of Laws, which prohibits operators of internet-based applications from using automated decision systems for content placement for users under the age of eighteen. Operators must perform age verification for users eighteen years or older through independent third-party services or by verifying personal information or government-issued identification. Failure to comply with these age verification requirements constitutes prima facie evidence of a violation. Violations of this section are classified as unfair or deceptive acts under the South Carolina Unfair Trade Practices Act, allowing the Attorney General to seek injunctions or civil penalties. Additionally, users who suffer damages due to violations can pursue individual actions for actual damages. Each instance of non-compliance is treated as a separate violation, potentially increasing penalties. The bill defines 'automated decision system' as any computational process that impacts consumers, including those derived from AI techniques. This broad definition encompasses various technologies that may be used in content placement, making compliance critical for operators of social media platforms. The bill is designed to enhance protections for minors and ensure responsible use of technology in content delivery.