United States of America: Issued ruling blocking the implementation of California Age-Appropriate Design Code Act

On 18 September 2023, the United States District Court Northern District of California granted a motion for preliminary injunction, blocking the implementation of the California Age-Appropriate Design Code Act. The NetChoice, a trade association representing companies such as e Google, Amazon, Meta, and TikTok, challenged the constitutionality of the Act, arguing that it is incompatible with the First Amendment. The Act, set to enter into force on 1 July 2024, mandates several obligations for any business that offers an online service, product, or feature that is anticipated to be utilised by children. Furthermore, the Act prohibits enterprises offering products that are probable to be accessed by children from gathering or utilising personal information obtained from child users. It also necessitates these businesses to accurately determine the age of their customers and limit the scope and nature of personal data that can be gathered, sold, shared, or retained concerning these individuals. The court temporarily blocked the Act due to its potential violation of the constitution. The preliminary injunction takes immediate effect until otherwise ordered by the court.