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$5,000 Per Violation: This US State Permits Parents To Take Social Media Giants To Court

The law is scheduled to take effect in September 2027.

$5,000 Per Violation: This US State Permits Parents To Take Social Media Giants To Court
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The US state of New Jersey has introduced a new law giving individual families a direct right to take social media companies to court over alleged violations involving minors.

The new act, named the New Jersey Kids Code Act, was signed by New Jersey Governor Mikie Sherrill on August 12, 2026, according to a Tech Times report.

Under the newly signed act, parents can seek $5,000 per violation from social media platforms. The law is scheduled to take effect in September 2027. With the new law, New Jersey has reportedly become the first US state to give individual families a direct private right of action against social media platforms under an age-appropriate design law, the report further added.

How Much Can Parents Claim From Social Media Companies?

Amid a growing number of lawsuits accusing social media companies of harming young users, the New Jersey law gives parents a new legal route to seek damages from platforms.

A parent of an affected minor, or the minor themselves, can file a civil action against a covered online service provider. Courts can award $5,000 per violation or treble damages, whichever is greater, in cases involving negligent or more serious violations.

Punitive damages may also be available in cases involving reckless or knowing conduct, along with attorney's fees and injunctive relief, the Tech Times report stated. As the new law is scheduled to take effect from September 2027, parents cannot immediately file cases under the new provisions, the Tech Times report added.

ALSO READ: US Court Slaps Meta With $567-Million Penalty Over Teen Mental Health Harms

What Does The New Jersey Kids Code Act Say?

The law requires covered platforms to set the highest available privacy settings by default for users known to be minors. It also restricts platforms from using design features intended to encourage compulsive engagement and places limits on how children's personal data can be collected and shared.

Platforms will also be required to block notifications to minors between 10 pm and 6 am every day, as well as between 8 am and 4 pm on school days from Labor Day through Memorial Day.

The law further restricts adults from messaging minors unless the minor initiates the conversation. It also requires platforms to be transparent when collecting precise location data or monitoring a user's activity. Additionally, age-verification data must be deleted within 15 days of collection.

Why Is The Law Significant?

The New Jersey law also comes amid growing legal scrutiny of social media companies over their impact on children.

The new law is significant as under many existing children's online safety laws, enforcement is primarily handled by government agencies. New Jersey's law allows families themselves to seek damages from social media companies- which makes it a private right of action. 

The legislation comes against the backdrop of the federal KIDS Act, where Congress removed a legally enforceable duty-of-care provision from the legislation earlier this year.

ALSO READ: Meta Deletes 756,000 Accounts Even As Over 80% Aussie Teens Defy Under-16 Ban

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