Chatbot act
Chatbot Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Chatbot Act prohibits companies from marketing or providing professional services through AI chatbots without the proper licenses. It specifically targets situations where chatbots falsely imply they have a license or are being provided by a licensed professional. The Federal Trade Commission (FTC) will enforce these rules, and states can also take action to protect residents. This legislation aims to ensure transparency and prevent misleading consumers about the qualifications of AI-powered services, particularly in regulated sectors like finance, healthcare, and legal services.
Key provisions
- Prohibits AI chatbots from falsely implying they possess a professional license.
- Requires covered entities to avoid misleading users about human involvement in AI-generated outputs.
- Establishes a 12-month timeframe for the FTC to provide guidance on compliance.
- Grants the FTC enforcement powers equivalent to those under the Federal Trade Commission Act.
- Allows states to bring civil actions on behalf of residents to enforce compliance.
- Defines ‘appropriate license’ as a permit or authorization required to practice a profession.
- Identifies ‘covered professions’ as those in finance, healthcare, legal services, and accounting/tax.
- Provides a private right of action for individuals harmed by violations.
Who is affected
- Companies deploying AI chatbots
- Consumers receiving services from AI chatbots
Bill text
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Sponsors
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