WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
The legislature finds that modern chatbots are now advanced enough to engage with users in highly human-like conversations, making it difficult for users to determine if they are speaking with a chatbot or a real person. Many chatbots are also designed to mimic human behaviors and conversations, and can be used to effectively influence people in a variety of ways, from advertising to spreading misinformation, and can even manipulate users into revealing personal information such as their social security or bank account numbers. Additionally, chatbots are intended to learn and adapt through their interactions with users. As chatbots gather information from users, they become better able to help their developers achieve specific objectives, such as keeping users engaged or encouraging them to make a purchase.
The legislature further finds that there are few regulations requiring that companies or individuals make users aware that they are interacting with a chatbot. This lack of transparency means that individuals may mistakenly believe they are conversing with a licensed professional, such as a doctor, financial advisor, or therapist, when they are actually speaking with a chatbot. The legislature believes that consumersConsumer"Consumer" means a natural person who, primarily for personal, family, or household purposes, purchase, attempts to purchase, or is solicited to purchase goods or services or who commits money, property, or services as a personal investment.§481B-__ (Definitions) have a right to know when they are engaging with a chatbot or other technology that mimics human interaction.
Accordingly, the purpose of this Act is to require: (1) Corporations, organizations, or individuals engaging in commercial transactions to inform consumersConsumer"Consumer" means a natural person who, primarily for personal, family, or household purposes, purchase, attempts to purchase, or is solicited to purchase goods or services or who commits money, property, or services as a personal investment.§481B-__ (Definitions) when the consumersConsumer"Consumer" means a natural person who, primarily for personal, family, or household purposes, purchase, attempts to purchase, or is solicited to purchase goods or services or who commits money, property, or services as a personal investment.§481B-__ (Definitions) are communicating or otherwise interacting with a chatbot or other technology that mimics human interaction; and (2) Developers of chatbots that sell, offer for sale, advertise, or make available chatbots to disclose that their chatbots use artificial intelligence and are capable of mimicking human behavior and engaging in a textual or spoken conversation.
Section 1 sets out the legislature's findings regarding the risks of advanced chatbots that can mimic human conversation, including deception, manipulation, extraction of personal information, and the lack of existing transparency requirements. These are purely declaratory and create no compliance obligations.
As used in this part: "Artificial intelligence chatbotArtificial intelligence chatbot"Artificial intelligence chatbot" or "chatbot" means a software application, web interface, or computer program designed to have textual or spoken conversations that uses a generative artificial intelligence system capable of maintaining a conversation with a user in a manner that uses natural language and simulates the way a natural person would behave as a conversational partner.§481B-__ (Definitions)" or "chatbot" means a software application, web interface, or computer program designed to have textual or spoken conversations that uses a generative artificial intelligence system capable of maintaining a conversation with a user in a manner that uses natural language and simulates the way a natural person would behave as a conversational partner.
"Class actionClass action"Class action" includes the definition as provided in rule 23 of the Hawaii rules of civil procedure.§481B-__ (Definitions)" includes the definition as provided in rule 23 of the Hawaii rules of civil procedure.
"ConsumerConsumer"Consumer" means a natural person who, primarily for personal, family, or household purposes, purchase, attempts to purchase, or is solicited to purchase goods or services or who commits money, property, or services as a personal investment.§481B-__ (Definitions)" means a natural person who, primarily for personal, family, or household purposes, purchase, attempts to purchase, or is solicited to purchase goods or services or who commits money, property, or services as a personal investment.
"De facto class actionDe facto class action"De facto class action" has the same meaning as in section 480-1.§481B-__ (Definitions)" has the same meaning as in section 480-1.
This section establishes the key defined terms for the new part, including artificial intelligence chatbot (or chatbot) and consumer. The chatbot definition is broad: any software application, web interface, or computer program that uses generative AI to carry on natural-language conversations simulating a human conversational partner. Notably, the definition is not limited to companion or social chatbots — it covers any generative-AI-powered conversational interface. The consumer definition tracks standard consumer-protection usage, covering natural persons acting for personal, family, or household purposes.
(a) 1 No corporation, organization, or individual engaging in a commercial transaction or trade practice of any kind shall use an artificial intelligence chatbotArtificial intelligence chatbot"Artificial intelligence chatbot" or "chatbot" means a software application, web interface, or computer program designed to have textual or spoken conversations that uses a generative artificial intelligence system capable of maintaining a conversation with a user in a manner that uses natural language and simulates the way a natural person would behave as a conversational partner.§481B-__ (Definitions) or other technology that is capable of mimicking human behavior and that engages in a textual or spoken conversation with a consumerConsumer"Consumer" means a natural person who, primarily for personal, family, or household purposes, purchase, attempts to purchase, or is solicited to purchase goods or services or who commits money, property, or services as a personal investment.§481B-__ (Definitions) in a manner that may mislead or deceive a reasonable person to believe they are engaging with a natural person without first disclosing to the consumerConsumer"Consumer" means a natural person who, primarily for personal, family, or household purposes, purchase, attempts to purchase, or is solicited to purchase goods or services or who commits money, property, or services as a personal investment.§481B-__ (Definitions) in a clear and conspicuous fashion that the consumerConsumer"Consumer" means a natural person who, primarily for personal, family, or household purposes, purchase, attempts to purchase, or is solicited to purchase goods or services or who commits money, property, or services as a personal investment.§481B-__ (Definitions) is interacting with a chatbot or other form of technology capable of mimicking human behavior; provided that small businesses that unknowingly utilize artificial intelligence chatbotsArtificial intelligence chatbot"Artificial intelligence chatbot" or "chatbot" means a software application, web interface, or computer program designed to have textual or spoken conversations that uses a generative artificial intelligence system capable of maintaining a conversation with a user in a manner that uses natural language and simulates the way a natural person would behave as a conversational partner.§481B-__ (Definitions) in their operations shall not be in violation of this chapter unless the small business has been provided clear and adequate notice of the requirements under this part and fails to comply after being afforded a reasonable opportunity to do so.
(b) 2 No developer of an artificial intelligence chatbotArtificial intelligence chatbot"Artificial intelligence chatbot" or "chatbot" means a software application, web interface, or computer program designed to have textual or spoken conversations that uses a generative artificial intelligence system capable of maintaining a conversation with a user in a manner that uses natural language and simulates the way a natural person would behave as a conversational partner.§481B-__ (Definitions) shall sell, offer for sale, advertise, or make available any artificial intelligence chatbotArtificial intelligence chatbot"Artificial intelligence chatbot" or "chatbot" means a software application, web interface, or computer program designed to have textual or spoken conversations that uses a generative artificial intelligence system capable of maintaining a conversation with a user in a manner that uses natural language and simulates the way a natural person would behave as a conversational partner.§481B-__ (Definitions) without disclosing in a clear and conspicuous fashion that the chatbot uses artificial intelligence and is capable of mimicking human behavior and engaging in a textual or spoken conversation with a person in a manner that may mislead or deceive a reasonable person to believe they are engaging with a natural person.
(c) Any violation of this section shall be considered an unfair or deceptive act or practice under this chapter.
This is the bill's core operative section. It imposes two distinct disclosure obligations on two different actor types. Subsection (a) targets any corporation, organization, or individual engaged in a commercial transaction who uses a chatbot: they must provide clear and conspicuous notice to consumers before the consumer interacts with the chatbot, whenever the interaction could mislead a reasonable person into believing they are engaging with a natural person. A small-business safe harbor applies when the small business unknowingly uses AI chatbots and has not received clear notice of these requirements. Subsection (b) targets developers who sell, offer for sale, advertise, or make available chatbots: they must disclose that the chatbot uses artificial intelligence and is capable of mimicking human behavior. Subsection (c) designates any violation as an unfair or deceptive act or practice under Chapter 481B.
(a) 3 Except as provided by subsection (b), any person who is injured by a violation of this part may: (1) Sue for damages sustained by the person, and, if the judgment is for the plaintiff, the plaintiff shall be awarded a sum no less than $1,000 or threefold damages sustained by the plaintiff, whichever sum is greater, and reasonable attorneys' fees together with the costs of the suit; and (2) Bring proceedings to enjoin the unlawful practices, and, if the decree is for the plaintiff, the plaintiff shall be awarded reasonable attorneys' fees together with the costs of the suit.
(b) 3 The remedies provided in subsection (a) shall be applied in class actionClass action"Class action" includes the definition as provided in rule 23 of the Hawaii rules of civil procedure.§481B-__ (Definitions) and de facto class actionDe facto class action"De facto class action" has the same meaning as in section 480-1.§481B-__ (Definitions) lawsuits or proceedings; provided that: (1) The minimum $1,000 recovery provided in subsection (a) shall not apply in a class actionClass action"Class action" includes the definition as provided in rule 23 of the Hawaii rules of civil procedure.§481B-__ (Definitions) or de facto class actionDe facto class action"De facto class action" has the same meaning as in section 480-1.§481B-__ (Definitions) lawsuit; (2) That portion of threefold damages in excess of compensatory damages shall be apportioned and allocated by the court in its exercise of discretion so as to promote effective enforcement of this part and deterrence from violation of its provisions; and (3) Damages awarded shall not exceed $10,000,000.
(c) 3 The remedies provided in this section are cumulative and may be brought in one action.
(d) 3 In addition to any other remedy provided by law, the attorney general and director of the office of consumerConsumer"Consumer" means a natural person who, primarily for personal, family, or household purposes, purchase, attempts to purchase, or is solicited to purchase goods or services or who commits money, property, or services as a personal investment.§481B-__ (Definitions) protection may file a petition for injunctive relief against any corporation, organization, developer, or individual who violates this part.
This section establishes the enforcement framework. Individual plaintiffs may sue for the greater of $1,000 or threefold actual damages, plus reasonable attorney's fees and costs. Injunctive relief is independently available with fee-shifting. In class actions, the $1,000 minimum does not apply, treble damages are discretionary, and total damages are capped at $10,000,000. The attorney general and the director of the office of consumer protection may independently seek injunctive relief. Remedies are cumulative and may be combined in a single action.
4 Any corporation, organization, developer, or individual found to be in violation of this part shall be subject to a civil penalty of no more than $5,000,000.
This section establishes a civil penalty of up to $5,000,000 for any corporation, organization, developer, or individual found in violation. The penalty is separate from and in addition to private-action damages.
This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
Standard savings clause preserving rights, duties, penalties, and proceedings that accrued before the Act's effective date.
This Act shall take effect on July 1, 3000.
The Act's effective date is set to July 1, 3000 — a standard Hawaii legislative placeholder date indicating that the effective date is intended to be amended during the legislative process. The bill is not operative as currently drafted.