AB2426 - Online platforms: educational children’s content.

Amended IN Assembly March 19, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 2426 Introduced by Assembly Member Wallis February 20, 2026 An act to amend Section 1770 of the Civil Code, relating to consumer remedies add Chapter 22.2.10 (commencing with 22589.7) to Division 8 of the Business and Professions Code, relating to children’s online platforms . LEGISLATIVE COUNSEL'S DIGEST AB 2426, as amended, Wallis. Deceptive practices. Online platforms: educational children’s content. Existing law establishes the Department of Consumer Affairs to, among other things, protect consumer interests and regulate specified businesses. Existing law requires a business that provides an online service, product, or feature likely to be accessed by children to comply with specified requirements, including configuring all default privacy settings provided to children to settings that offer a high level of privacy. Existing law prohibits an operator of an internet website, online service, online application, or mobile application directed to minors from marketing or advertising specified products or services to a minor. This bill would enact the California Children’s Digital Educational Content Act of 2026, which would require a covered platform, as defined, to establish and maintain a walled garden. The bill would define a walled garden as a clearly designated and easily accessible section of a platform that is dedicated exclusively to educational children’s content, as defined. The bill would require a walled garden to meet certain requirements, including that it be free from targeted advertising and be accessible to minors without an account. The bill would authorize the department to adopt regulations to implement these provisions. The bill would require a covered platform to annually submit a compliance report to the department and would authorize the department to conduct audits. The bill would impose specified administrative penalties for violation of its provisions. The Consumers Legal Remedies Act makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer. These include, among others, charging or receiving an unreasonable fee to prepare, aid, or advise a prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services, including veteran services. This bill would make a nonsubstantive change to those provisions. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Chapter 22.2.10 (commencing with Section 22589.7) is added to Division 8 of the Business and Professions Code, to read: CHAPTER 22.2.10. Children’s Digital Educational Content 22589.7. This chapter shall be known, and may be cited, as the California Children’s Digital Educational Content Act of 2026. 22589.7.1. For purposes of this chapter, the following definitions apply: (a) “Covered platform” means a platform that has annual gross revenues in excess of one hundred million dollars ($100,000,000) in any calendar year. (b) “Educational children’s content” means original video programming that is primarily designed for children 2 to 16 years of age, inclusive, is socially, civically, or core-curriculum educational in nature, and complies with the standards for children’s educational and informational programming adopted by the Federal Communications Commission. (c) “Minor” means an individual under 18 years of age. (d) “Platform” means an advertising-supported, nonsubscription digital content or social media service that distributes video content to users in California, whether the content is user generated or professionally produced. (e) “Walled garden” means a clearly designated and easily accessible section of a platform that is dedicated exclusively to educational children’s content. 22589.7.2. A covered platform shall establish and maintain a walled garden that meets all of the following requirements: (a) Contains no fewer than four hours of children’s digital educational content at all times. (b) Be free from targeted advertising. (c) Provide age-appropriate navigation and safety features. (d) Display content consistent with Federal Communications Commission guidelines for children’s programming. (e) Be accessible to minors without requiring account creation. 22589.7.3. (a) By April 1, 2027, and annually thereafter, a covered platform shall submit a compliance report to the Department of Consumer Affairs covering the preceding calendar year. The report shall include all of the following: (1) The titles and total hours of educational children’s content maintained in the walled garden during the reporting period. (2) A description of the safety features and navigation controls implemented in the walled garden. (3) Evidence of compliance with the requirements of this chapter. (b) The Department of Consumer Affairs may conduct audits to verify compliance with this chapter. 22589.7.4. (a) A covered platform that violates this chapter shall be liable for an administrative penalty not to exceed fifty thousand dollars ($50,000) per day for each day the violation continues. (b) The Department of Consumer Affairs may adopt regulations to implement the provisions of this chapter. SEC. 2. The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SECTION 1. Section 1770 of the Civil Code is amended to read: 1770. (a) The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful: (1) Passing off goods or services as those of another. (2) Misrepresenting the source, sponsorship, approval, or certification of goods or services. (3) Misrepresenting the affiliation, connection, or association with, or certification by, another. (4) Using deceptive representations or designations of geographic origin in connection with goods or services. (5) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have. (6) Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand. (7) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another. (8) Disparaging the goods, services, or business of another by false or misleading representation of fact. (9) Advertising goods or services with intent not to sell them as advertised. (10) Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity. (11) Advertising furniture without clearly indicating that it is unassembled if that is the case. (12) Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller. (13) Making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions. (14) Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law. (15) Representing that a part, replacement, or repair service is needed when it is not. (16) Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not. (17) Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction. (18) Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer. (19) Inserting an unconscionable provision in the contract. (20) Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the seller’s costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement. (21) Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7. (22) (A) Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message. (B) This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient. (23) (A) The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan or assessment is made encumbering the primary residence of that consumer for purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation of any of the following: (i) Subsection (h) or (i) of Section 1639 of Title 15 of the United States Code. (ii) Paragraph (1), (2), or (4) of subdivision (a) of Section 226.34 of Title 12 of the Code of Federal Regulations. (iii) Section 22684, 22685, 22686, or 22687 of the Financial Code. (iv) Section 5898.16, 5898.17, 5913, 5922, 5923, 5924, 5925, 5926, or 5940 of the Streets and Highways Code. (B) A third party shall not be liable under this subdivision unless (i) there was an agency relationship between the party who engaged in home solicitation and the third party, or (ii) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision. (24) (A) Charging or receiving an unreasonable fee to prepare, aid, or advise a prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services. (B) For purposes of this paragraph: (i) “Public social services” means those activities and functions of state and local government administered or supervised by the State Department of Health Care Services, the State Department of Public Health, or the State Department of Social Services, and involved in providing aid or services, or both, including health care services, and medical assistance, to those persons who, because of their economic circumstances or social condition, are in need of that aid or those services and may benefit from them. (ii) “Public social services” also includes activities and functions administered or supervised by the United States Department of Veterans Affairs or the California Department of Veterans Affairs involved in providing aid or services, or both, to veterans, including pension benefits. (iii) “Unreasonable fee” means a fee that is exorbitant and disproportionate to the services performed. Factors to be considered, if appropriate, in determining the reasonableness of a fee, are based on the circumstances existing at the time of the service and shall include, but not be limited to, all of the following: (I) The time and effort required. (II) The novelty and difficulty of the services. (III) The skill required to perform the services. (IV) The nature and length of the professional relationship. (V) The experience, reputation, and ability of the person providing the services. (C) This paragraph shall not apply to attorneys licensed to practice law in California, who are subject to the California Rules of Professional Conduct and to the mandatory fee arbitration provisions of Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code, when the fees charged or received are for providing representation in administrative agency appeal proceedings or court proceedings for purposes of procuring, maintaining, or securing public social services on behalf of a person or group of persons. (25) (A) Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans’ benefits or entitlements that does not include the following statement in the same type size and font as the term “veteran” or any variation of that term: (i) “I am not authorized to file an initial application for Veterans’ Aid and Attendance benefits on your behalf, or to represent you before the Board of Veterans’ Appeals within the United States Department of Veterans Affairs in any proceeding on any matter, including an application for those benefits. It would be illegal for me to accept a fee for preparing that application on your behalf.” The requirements of this clause do not apply to a person licensed to act as an agent or attorney in proceedings before the Agency of Original Jurisdiction and the Board of Veterans’ Appeals within the United States Department of Veterans Affairs when that person is offering those services at the advertised event. (ii) The statement in clause (i) shall also be disseminated, both orally and in writing, at the beginning of any event, presentation, seminar, workshop, or public gathering regarding veterans’ benefits or entitlements. (B) Advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans’ benefits or entitlements that is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the California Department of Veterans Affairs, or any other congressionally chartered or recognize [Text truncated for display. Full text available on Congress.gov.]