Regulon — AL-HB-325 · AL HB 325 (AI Chatbot Disclosure)

HB-325

AL · State · USA

USA

● Pending

Proposed Effective Date

2026-10-01

Alabama HB 325 — Relating to AI chatbots; to prohibit persons from engaging with consumers in commercial transactions through AI chatbots without notifying the consumer that the consumer is communicating with a computer; to make this violation an unfair or deceptive trade practice; to provide a private right of action for consumers for violations; and to authorize the Attorney General to bring suit to enforce this act.

Requires any person engaging in a commercial transaction or trade practice with a consumer through an AI chatbot to notify the consumer that the consumer is communicating with a computer, not a human, when the consumer may reasonably believe they are engaging with a human. Disclosure must be given at the beginning of each interaction and at regular intervals for continuing interactions. Failure to comply is deemed an unfair or deceptive trade practice. Consumers have a private right of action for injunctive relief, actual damages, and statutory damages up to $1,000 per violation (class action cap of $10 million). The Attorney General may independently bring enforcement actions seeking injunctive relief and civil penalties up to $5 million.

Summary

Enforcement & Penalties

Enforcement Authority

Dual enforcement. The Attorney General may bring an action upon complaint or on the Attorney General's own initiative against any person who has violated or is about to violate Section 2(a). Private right of action available to any consumer subjected to a commercial transaction that violates Section 2(a). No cure period or safe harbor.

Penalties

Private plaintiffs may recover injunctive relief, actual damages, and statutory damages not to exceed $1,000 per violation. Class action damages are capped at $10,000,000. The Attorney General may seek injunctive relief, civil penalties of up to $5,000,000 per violation, and any other remedies the court deems appropriate. Statutory damages do not require proof of actual monetary harm — the statute awards actual damages 'as well as' statutory damages, indicating they are independent.

Who Is Covered

What Is Covered

CHATBOT. A generative artificial intelligence program with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.

Compliance Obligations 4 obligations · click obligation ID to open requirement page

T-01 AI Identity Disclosure · T-01.1 T-01.2 · Deployer · Chatbot

Section 2(a)(1)-(2)

Plain Language

Any person conducting a commercial transaction or trade practice with a consumer through an AI chatbot must disclose — verbally or in writing — that the consumer is communicating with a computer, not a human, if the consumer could reasonably believe they are engaging with a human. This disclosure must occur at the beginning of each interaction and must be repeated at regular intervals during continuing interactions. The trigger is a reasonable-person standard: if the chatbot's interface is clearly non-human, the disclosure obligation may not apply. The statute does not specify the interval frequency, leaving 'regular interval' to judicial interpretation.

Statutory Text

(a) A person that engages in a commercial transaction or trade practice with a consumer through an AI chatbot, in textual or aural conversation, where the consumer may reasonably believe the consumer is engaging with a human, shall notify the consumer verbally or in writing: (1) At the beginning of each interaction that the consumer is communicating with a computer, not a human; and (2) At a regular interval for continuing interactions that the consumer is communicating with computer, not a human.

Other · Chatbot

Section 2(b)

Plain Language

Failure to provide the required AI chatbot disclosure is deemed an unfair or deceptive trade practice under Alabama law. This provision activates the state's existing unfair and deceptive trade practices enforcement framework but does not create a new standalone compliance obligation. The operative duty is in Section 2(a).

Statutory Text

(b) Failure to comply with the provisions of this act is an unfair or deceptive trade practice.

Other · Chatbot

Section 3(a)-(b)

Plain Language

Consumers who experience a commercial transaction where the AI chatbot disclosure was not provided may sue for injunctive relief, actual damages, and statutory damages up to $1,000 per violation. Class action damages are capped at $10 million. This provision creates the private enforcement mechanism but does not impose a separate compliance obligation — the underlying duty is the disclosure requirement in Section 2(a).

Statutory Text

Section 3. (a) A consumer who is subjected to a commercial transaction that violates Section 2(a) of this act may bring a civil action to recover the following relief: (1) Injunctive relief. (2) Damages in an amount equal to the sum of any actual damages, as well as statutory damages not to exceed one thousand dollars ($1,000) per violation. (b) In the case of a class action lawsuit, the court may not award damages in excess of ten million dollars ($10,000,000).

Other · Chatbot

Section 4

Plain Language

The Attorney General may bring enforcement actions — either upon receiving a complaint or on the AG's own initiative — against persons who have violated or are about to violate the disclosure requirement. The AG may seek injunctions, civil penalties up to $5 million, and any other court-ordered remedies. This provision establishes the public enforcement mechanism but does not create a separate compliance obligation.

Statutory Text

Section 4. Whenever it appears to the Attorney General, either upon complaint or otherwise, that a person has violated or is about to violate Section 2(a) of this act, the Attorney General may bring an action against a person to: (1) Enjoin the person from continuing the violation; (2) Seek civil penalties of up to five million dollars ($5,000,000) for a violation under this act; and (3) Seek any other remedies as the court may deem appropriate.