The law states that a site may collect information with the consent of the child's parents. That is fairly innocuous. The problem is that Google scuttles the account and thus the Chromebook.
The law goes a lot further than that, the law prevents Google from marketing to children, so it would have to disable ALL of its marketing and tracking programs for children's accounts. It is reasonable for Google to scuttle the account instead, these services are not intended for children.