California requires AI disclosure and limits social media for minors

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California began enforcing the AI Transparency Act on August 2, requiring developers to track the origin of content created or altered by artificial intelligence. Simultaneously, Governor Gavin Newsom signed a law restricting features on social media platforms that could be addictive to users under 16 years old.
The AI Transparency Act, known as SB 942, compels AI developers with large user bases to embed information about a file’s creation within digital files.
Companies that violate the AI Transparency Act may face civil penalties of $5,000 for each day they fail to comply. Starting January 1, 2027, search engines, social networks, and mass messaging services with over two million monthly users must detect and store data about the origin of files on their platforms. Newsom’s new law prohibits platforms from offering features like infinite scrolling, automatic video playback, and algorithm-based recommendation systems to those under 16.
Platforms can continue to host accounts for young users if they offer versions of their services without these features or verify the user’s age to restrict access. These two laws work together to increase demands on technology companies operating in California. The AI Transparency Act focuses on identifying synthetic content, while the law for minors aims to reduce design elements that encourage prolonged social media use among children and teenagers.


