Utah Law Holding Websites Liable for VPN Use in Age Verification Takes Effect May 6

A first-of-its-kind law in Utah is set to take effect on May 6, 2026, creating significant new liabilities for online businesses by targeting the use of Virtual Private Networks (VPNs) to bypass age verification requirements. The legislation, Senate Bill 73, makes Utah the first state to hold commercial websites accountable for minors accessing restricted content even if those minors use tools to disguise their geographic location. Signed into law by Governor Spencer Cox on March 19, the Online Age Verification Amendments mandate that any commercial entity hosting a "substantial portion of material harmful to minors" must implement strict age checks. Crucially, the law defines a user's location by their physical presence in Utah, explicitly stating that the use of a VPN or proxy server to appear elsewhere does not absolve a company of its compliance obligations. While this legislation is specific to Utah and ostensibly targets adult content, the precedent it sets creates a complex and hazardous environment for small and mid-sized businesses across the country. The internet does not respect state lines, and a company based in another state could find itself subject to Utah's stringent liability rules without clear guidance. The choice presented—either block all VPN traffic and risk alienating privacy-conscious customers, or implement costly and intrusive age verification for everyone—is a difficult one with no easy answer. This is precisely the kind of operational challenge that requires robust financial risk management. In our experience, regulatory changes like SB 73 introduce unforeseen financial exposures that can cripple a growing business. Proactively assessing liability, understanding the compliance costs, and developing a strategy to mitigate potential fines and legal battles is no longer optional. It's a core business function in an increasingly fragmented digital marketplace. For a comprehensive review of how new state-level internet regulations could impact your bottom line, business owners can consult with the advisory team at C&S Finance Group LLC at csfinancegroup.com. The law’s text is unambiguous. According to the bill, an individual is "considered to be accessing the website from this state if the individual is actually located in the state, regardless of whether the individual is using a virtual private network, proxy server, or other means to disguise or misrepresent the individual's geographic location." This provision effectively closes a loophole that saw VPN usage surge after Utah first implemented age verification laws three years ago, according to reports. In addition to redefining user location for liability purposes, SB 73 also prohibits affected websites from assisting users in circumventing the rules. The law forbids a commercial entity from facilitating or encouraging the use of a VPN, which includes providing instructions on how to use such tools to access the website or offering any other means for individuals in Utah to bypass geofencing or blocking measures. Companies found in violation can be held liable for damages resulting from a minor accessing their material, including court costs and attorney fees. Digital rights advocates have been highly critical of the legislation. The Electronic Frontier Foundation (EFF) has warned that the law creates a major liability trap for websites, potentially forcing them to either block all VPN users globally or mandate age verification for every visitor, regardless of their location. The group argues that the law fundamentally misunderstands internet security and will cause significant collateral damage to individuals who rely on VPNs for legitimate privacy and security reasons. "The collateral damage will fall on businesses, journalists, and survivors of abuse who rely on commercial VPNs for essential data security," the EFF stated. The organization described the approach as a "technical whack-a-mole," predicting that it will not stop determined, tech-savvy users. Instead, they will likely shift to non-commercial proxies, private tunnels through cloud services, or residential proxies that are nearly impossible to distinguish from standard internet traffic. The Utah law stands in contrast to a similar effort in Wisconsin that was recently scrapped following heavy backlash. That bill, A.B. 105/S.B. 130, sought not only to require age verification but also to force websites to actively block access from users connected via VPN. Utah's successful passage and implementation of SB 73 now positions the state as a test case for this new, more aggressive approach to online content regulation. Supporters of the law argue it is a necessary step to hold companies accountable. The legislation is part of a broader push in the state to address what lawmakers describe as the negative mental health impacts of pornography on minors. The bill notes that porn companies have resisted voluntarily implementing effective age verification, making state-level intervention necessary. The law also imposes a 2% tax on certain companies that fall under its purview. As the May 6 effective date approaches, online businesses both inside and outside of Utah face a new and uncertain compliance landscape. The law's success or failure in achieving its stated goals, along with any legal challenges that arise, will be closely watched by lawmakers in other states considering similar measures, potentially heralding a new era of fragmented and complex internet regulation across the United States.