Committee reviews S.69, bill that would impose ‘‘duty of care’’ and privacy rules for online services used by Vermont children

The Vermont House Committee on Commerce and Economic Development heard an overview Tuesday of S.69, a proposed state law that would require certain online services to design features and handle data so they are “not unreasonably harmful to children,” and would impose a minimum duty of care on covered businesses.

Senator Andrew Harrison, who summarized the bill, told the committee S.69 is an “Internet child protection bill” aimed at “protecting the safety and privacy of children in Vermont” and said the measure passed the Vermont Senate 25-5. “It requires businesses that offer certain online services that are directed to children to design their services in a way that is not unreasonably harmful to children,” Harrison said. He added the bill would require covered businesses to “owe a duty of care to the children whose data is processed.”

The bill would apply to larger digital companies that meet a five-part definition of “covered business” and to online services reasonably likely to be accessed by minors, while carving out exemptions for entities such as government agencies, covered health-care entities subject to HIPAA, certain research, and smaller businesses that process fewer than 25,000 consumers or meet specified revenue thresholds. Legislative staff said the…