Nebraska Governor Jim Pillen signed LB504, the Age-Appropriate Online Design Code Act, into law marking one of the strongest state-level actions yet aimed at reining in the influence of Big Tech on children and just adding to the weekly news of privacy
Nebraska Child Privacy Law Compliance: What It Means for Businesses and How to Stay Compliant
While the political framing of the bill leans heavily on culture war rhetoric, the legal implications are unmistakable: online platforms that collect data from children or teens will face sweeping new requirements starting January 1, 2026. For companies operating in or reaching users in Nebraska, now is the time to get compliant or risk the legal ramifications. There are also KOSA, COPPA, and FERPA for protecting children that just make privacy compliance more and more complex for business owners.
What Does LB504 Require?
LB504 is modeled in part on the UK’s Age-Appropriate Design Code (often called the “Children’s Code”), but tailored for Nebraska’s legal framework. Here are some of the key provisions:
- Default Privacy Settings: Online services “likely to be accessed by children” must apply high privacy settings by default.
- Data Minimization: Platforms must limit data collection and profiling of minors unless strictly necessary.
- Dark Patterns Prohibited: Manipulative design elements that encourage compulsive usage or undermine parental controls are banned.
- Parental Control Options: Parents must be given tools to manage privacy and account settings on behalf of their children.
- Transparency & Age Assessments: Companies must clearly explain how data is used and implement reasonable efforts to estimate the age of users.
For privacy professionals, this is a clear call to revisit data governance, design practices, and age verification systems.
The Clock Is Ticking: Compliance Deadline Is Jan. 1, 2026
Though Nebraska is the first Midwest state to pass a children’s online safety code, it’s unlikely to be the last. Florida, Texas, and Utah have already passed similar bills along with AI acts. The signal to tech companies is unmistakable: treat child privacy like a front-line compliance issue—not a marketing bullet point.
With only seven months until enforcement begins, companies should be conducting impact assessments now, especially if their websites or apps:
- Allow account creation for users under 18
- Use algorithms that encourage continued engagement (e.g., infinite scroll, autoplay)
- Collect geolocation, browsing behavior, or contact data
- Rely on targeted advertising to monetize users
Why This Matters for Businesses Beyond Nebraska
While LB504 technically applies to companies with users in Nebraska, the enforcement model (similar to the GDPR-K or CPRA) means companies nationwide will have to either geo-fence experiences or raise standards across the board to obey the law.
That’s where Captain Compliance comes in.
Captain Compliance: The Platform Helping You Navigate Emerging Kids’ Privacy Laws
Captain Compliance helps SaaS platforms, eCommerce businesses, and digital publishers implement scalable privacy workflows that comply with new legislation like LB504. Our suite of tools allows companies to:
- Deploy age-appropriate privacy notices
- Offer granular parental control interfaces
- Ensure tracking technologies don’t fire without valid consent
- Automate data minimization protocols for minor users
- Generate audit trails and readiness reports for state AGs
We’ve helped dozens of companies get ahead of privacy shifts and requirements before enforcement begins and before legal headaches pile up. Private right of action lawsuits for privacy violations are growing and it’s only expanding as more of these new laws are passed.
What to Do Now
- Assess Your Exposure: Determine whether your site or app is “likely to be accessed by children” as defined by the law.
- Implement an Age Gate: Start collecting anonymous age-range data or use device-level age estimation tools.
- Review Your Consent Management: Ensure your cookie banner distinguishes between users and applies stricter controls for minors.
- Eliminate Dark Patterns: Audit UX flows that use time pressure, default opt-ins, or infinite scroll loops.
- Train Your Privacy Team: Make sure internal stakeholders are familiar with LB504 and similar statutes.
Nebraska Age-Appropriate Compliance Software
Nebraska’s Age-Appropriate Online Design Code Act may have been fueled by politics, but its legal requirements align with a growing global movement: protecting minors from being treated as data points in a growth-hacking strategy.
Smart companies will treat this not as a burden but as an opportunity to earn trust with families, regulators, and future customers.
If your organization needs help auditing or implementing controls for LB504—or the CPRA, GDPR, or upcoming federal regulations—Captain Compliance is your ally. Book a demo below.
