HB-127
ID · State · USA
ID
USA
● Enacted
Effective Date
2025-07-01
Idaho House Bill 127 — Disclosure of Artificial Intelligence Communications (Section 48-603H, Idaho Code)
Adds a new unfair and deceptive trade practice to Idaho's Consumer Protection Act requiring any person using a chatbot, AI agent, avatar, or similar conversational AI technology in trade or commerce to clearly and conspicuously disclose to consumers that they are not communicating with a human, when the interaction could mislead a reasonable consumer. The obligation is triggered only when the AI is doing more than providing basic operational information (e.g., hours, locations, simple purchasing mechanics). Enforcement is available via private right of action ($1,000 statutory minimum per violation or actual damages, whichever is greater) and attorney general injunctive relief with civil penalties ($10,000 minimum plus $1,000 per violation). Prevailing parties recover attorney's fees and investigative costs. Effective July 1, 2025.
Summary

Adds a new unfair and deceptive trade practice to Idaho's Consumer Protection Act requiring any person using a chatbot, AI agent, avatar, or similar conversational AI technology in trade or commerce to clearly and conspicuously disclose to consumers that they are not communicating with a human, when the interaction could mislead a reasonable consumer. The obligation is triggered only when the AI is doing more than providing basic operational information (e.g., hours, locations, simple purchasing mechanics). Enforcement is available via private right of action ($1,000 statutory minimum per violation or actual damages, whichever is greater) and attorney general injunctive relief with civil penalties ($10,000 minimum plus $1,000 per violation). Prevailing parties recover attorney's fees and investigative costs. Effective July 1, 2025.

Enforcement & Penalties
Enforcement Authority
Dual enforcement. Private right of action: any consumer may bring an individual or class action against a person who fails to comply. Attorney general enforcement: the attorney general may seek injunctive relief against any person who fails to comply. No cure period or safe harbor is specified.
Penalties
Individual consumer action: greater of actual damages (including value of consumer's time in resolving issues) or $1,000 statutory damages. Class action: such amount as the court may allow, not to exceed actual damages or $10,000. Attorney general enforcement: minimum civil penalty of $10,000 plus $1,000 per violation as determined by the court, plus injunctive relief. Prevailing party in any action is entitled to reasonable investigative costs, all other costs allowed by statute and rule, and reasonable attorney's fees. Statutory damages do not require proof of actual monetary harm.
Who Is Covered
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.
What Is Covered
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
Compliance Obligations 1 obligation · click obligation ID to open requirement page
T-01 AI Identity Disclosure · T-01.1 · ChatbotGeneral Consumer App
Idaho Code § 48-603H(1)(a)-(c)
Plain Language
Any person using a chatbot, AI agent, avatar, or similar conversational AI technology in trade or commerce must clearly and conspicuously notify consumers that they are not communicating with a human being, when two conditions are met: (1) the interaction could mislead a reasonable consumer into thinking they are speaking with a human, and (2) the AI is doing more than conveying basic operational information such as hours, locations, employee directories, or simple purchase mechanics. The disclosure must be sufficiently clear and conspicuous that a reasonable consumer would not be misled. This is a conditional trigger — simple informational bots providing only basic operational details are carved out. Note that this obligation is structured as a prohibition (unfair trade practice) rather than an affirmative mandate, meaning all three elements (a), (b), and (c) must be present simultaneously for a violation.
Statutory Text
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.