Bluesky to Comply with Age Verification Laws in South Dakota and Wyoming Following Mississippi Exit
Social networking startup Bluesky has announced a new compliance strategy for age-verification laws in South Dakota and Wyoming after its recent withdrawal from Mississippi. The company blocked access in Mississippi due to a stringent new law that mandated verification of all users, not just those accessing age-restricted content, along with parental consent for users under 18. The law also imposed severe penalties of up to $10,000 per user, which Bluesky’s small team was unable to accommodate technically.
In contrast, Bluesky will utilize Kids Web Services’ (KWS) age-verification system to meet regulatory demands in South Dakota and Wyoming. This approach allows users to verify their age through multiple options, including payment cards, identity documents, or an anonymous facial scan that estimates age. The flexibility of KWS’s solution avoids the need for blanket access restrictions, enabling Bluesky to maintain service availability in these states.
Bluesky is also employing the same KWS verification method to comply with the United Kingdom’s Online Safety Act, which imposes comparable requirements. In a blog post, the company stated, “We believe this approach currently strikes the right balance. Bluesky will remain available to users in these states, and we will not need to restrict the app for everyone.”
The company acknowledged the intent behind age-verification laws to protect minors online but criticized overly broad legislation like Mississippi’s as impractical for smaller platforms. Bluesky’s exit from Mississippi effectively leaves larger competitors such as Meta with less competition in that market.
Age-verification regulations are proliferating globally, with numerous U.S. states independently enacting their own laws due to the absence of federal standards. These laws pose operational challenges for smaller social networks, which often lack the resources to implement comprehensive compliance measures. Privacy advocates have also raised concerns about potential risks of identity theft and the invasive nature of such requirements.
FinOracleAI — Market View
Bluesky’s adoption of a flexible age-verification solution in South Dakota and Wyoming mitigates the risk of losing access to these markets, unlike its exit from Mississippi. This approach may preserve user engagement and revenue streams in these states while avoiding costly compliance burdens. However, the patchwork of state laws continues to present operational challenges and regulatory uncertainty for smaller social platforms.
Investors should monitor further legislative developments across other states and the effectiveness of KWS’s verification methods in balancing compliance with user privacy and experience.
Impact: neutral
