1. Short title This Act may be cited as the Kids Internet Design and Safety Act or the KIDS Act . 2. Findings Congress finds the following: (1) Children increasingly consume digital entertainment on the internet and are uniquely susceptible to manipulation online, given their lack of important neurological and psychological mechanisms which are developed later in adulthood. (2) Today’s digital media environment, which is constantly evolving and now includes high-tech experiences, such as augmented reality and virtual reality, is largely designed in non-transparent ways to ensure children interact with content that reflect the interests and goals of content creators, platforms, and marketers. (3) Artificial intelligence, machine learning, and other complex systems are used to make continuous decisions about how online content for children can be personalized to increase engagement. (4) Online companies gather, analyze, and use data for behavioral marketing directed at children. (5) Companies employ sophisticated strategies, including neuromarketing, to affect consumer behavior and manipulate decision making. (6) Branded content in various forms of multimedia, including native advertising and influencer marketing, exposes children to marketing that is inherently manipulative or purposely disguised as entertainment or other information. 3. Definitions (a) In general In this Act: (1) Augmented reality The term augmented reality means an application or web-based experience utilizing a camera to change or enhance the user's view of the real world. (2) Branded content The term branded content means commercial content created for, and distributed on, a platform in such a way that the line between entertainment and advertising becomes unclear in order to generate a positive view of the brand. (3) Commission The term Commission means the Federal Trade Commission. (4) Covered user The term covered user means an individual under the age of 16. (5) Directed to children The term directed to children means the targeting of