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.
(1) 1 It is an unfair and deceptive trade practice for any person to engage in trade or commerce with a consumer in which the person is communicating or otherwise interacting with a consumer using a chatbot, artificial intelligence agent, avatar, or other computer technology that engages in a textual or aural conversation and which may mislead or deceive a reasonable consumer to believe the consumer is engaging with an actual human, and: (a) The consumer is not notified in a clear and conspicuous fashion that the consumer is not communicating with a human being; (b) The consumer may reasonably believe the consumer is engaging with a human because the communication is not clear and conspicuous; and (c) The chatbot, artificial intelligence agent, avatar, or other computer technology that engages in a textual or aural conversation is doing more than stating the person's basic operations information, such as employee directories, locations, hours of operation, the basic mechanics of purchasing items, and similar information.
(2) A consumer may initiate a private right of action against any person who fails to comply with subsection (1) of this section, and such person is liable: (a) To such consumer in an amount equal to the actual damage, including the value of the consumer's time in resolving any issues caused by the violation of this section, and other damages sustained by such consumer as a result of such violation, or a statutory damage of one thousand dollars ($1,000), whichever is greater; or (b) In the case of a class action, for such amount as the court may allow for the class, not to exceed actual damages or ten thousand dollars ($10,000).
(3) The attorney general may seek injunctive relief against any person who fails to comply with subsection (1) of this section with respect to any consumer, and any person found in a court of law to be out of compliance with subsection (1) of this section shall be liable for a minimum civil penalty of ten thousand dollars ($10,000) and one thousand dollars ($1,000) per violation to be determined by the court.
(4) In any action brought pursuant to this section, the prevailing party shall be entitled to an award of the reasonable investigative costs, all other costs as allowed by statute and rule, and reasonable attorney's fees incurred in pursuing or defending the litigation.
This section establishes the bill's sole operative obligation and its enforcement mechanisms. It declares it an unfair and deceptive trade practice for any person in trade or commerce to use a chatbot, AI agent, avatar, or similar conversational technology to interact with a consumer without clearly and conspicuously disclosing that the consumer is not communicating with a human — but only when three conditions are simultaneously met: the consumer was not notified, the consumer could reasonably believe they are engaging with a human, and the AI system is doing more than stating basic operations information such as hours, locations, or purchasing mechanics.
The basic-operations-information carve-out in subsection (1)(c) is notable — simple IVR-style or FAQ-style bots that only relay employee directories, store hours, or purchasing steps are excluded even if they are conversational. Enforcement is available both through a private right of action (individual or class) and through the attorney general, with fee-shifting to the prevailing party in either context.