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.
SECTION 1. 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 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.HRS § 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 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.HRS § 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.HRS § 481B-__ (Definitions) are communicating or otherwise interacting with a chatbot or other technology that mimics human interaction.
Section 1 contains the legislature's findings regarding the risks posed by advanced chatbots that can mimic human conversation, including their potential for deception, manipulation, and extraction of personal information. It states the legislature's belief that consumers have a right to know when they are interacting with a chatbot and sets forth the bill's purpose: to require disclosure in commercial contexts.
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.HRS § 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.HRS § 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.HRS § 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.HRS § 481B-__ (Definitions)" has the same meaning as in section 480-1.
This section defines the key terms used in the new Part added to Chapter 481B. The central defined term is artificial intelligence chatbot, which covers any software application, web interface, or computer program that uses generative AI to maintain natural-language conversations simulating human conversational behavior. The definition is broad — it is not limited to companion or social chatbots and would encompass customer-service bots, sales assistants, and any other commercial conversational AI. The section also defines consumer with reference to personal, family, or household purposes, and incorporates existing procedural definitions for class actions.
(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.HRS § 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.HRS § 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.HRS § 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.HRS § 481B-__ (Definitions) is interacting with a chatbot or other form of technology capable of mimicking human behavior.
(b) Any violation of this section shall be considered an unfair or deceptive act or practice under this chapter.
This section establishes the bill's core obligation: any corporation, organization, or individual engaged in a commercial transaction must disclose to the consumer, clearly and conspicuously, that they are interacting with a chatbot or other technology capable of mimicking human behavior. The disclosure obligation is triggered when the interaction could mislead a reasonable person into believing they are engaging with a natural person. This is a pre-interaction disclosure — it must occur before the consumer begins engaging with the system. Subsection (b) classifies any violation as an unfair or deceptive act or practice under Chapter 481B, integrating the obligation into Hawaii's existing consumer protection enforcement framework.
(a) 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) 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.HRS § 481B-__ (Definitions) and de facto class actionDe facto class action"De facto class action" has the same meaning as in section 480-1.HRS § 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.HRS § 481B-__ (Definitions) or de facto class actionDe facto class action"De facto class action" has the same meaning as in section 480-1.HRS § 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) The remedies provided in this section are cumulative and may be brought in one action.
(d) In addition to any other remedy provided by law, the attorney general may file a petition for injunctive relief against any corporation, organization, or individual who violates this part.
This section establishes the enforcement mechanism for the disclosure requirement. It creates a private right of action for any person injured by a violation, providing a statutory minimum of $1,000 or threefold actual damages, whichever is greater, plus reasonable attorney's fees and costs. Injunctive relief is also available. For class actions and de facto class actions, the $1,000 minimum does not apply, treble damages above compensatory are allocated at the court's discretion, and total damages are capped at $10,000,000. Subsection (d) separately authorizes the attorney general to seek injunctive relief. The remedies are cumulative.
Any corporation, organization, 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, or individual found in violation of the new Part. This penalty is separate from and in addition to the private right of action remedies provided in the preceding section.
SECTION 3. This Act shall take effect upon its approval.
The Act takes effect upon approval by the governor.