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I agree with you in theory, however I don't think there would be any practical way to enforce it.
JMO
There are a few ways they are considering in which to enforce it. At the moment, they involve determining a person's age through a couple of means (not them just ticking a box to say they are over 16). But the law won't come into effect for a year, so we will see what they come up with.
It is throwing the responsibility back on the social media companies to actually TRY to keep the children safe. (And face repercussions if they don't.)
There is a lot about it in this article.
The onus to date has been falling on the parents and the children themselves, and this law is the government making a very definitive statement and saying: We need to put the burden back on you, companies, just like we did with car manufacturers 60 years ago with seatbelts.
And now, there's so much lifesaving technology in our cars, like anti-lock brakes and airbags, that we take for granted. Back then, the car manufacturers pushed back, but now they compete on safety.
This law is really aimed at making normative change, that the onus should fall on platforms.
How will Australia's under-16 social media ban work? We asked the law's enforcer