Illinois · House Bill · 104th General Assembly (2025–2026)
HB—3021
Illinois HB 3021 — Consumer Fraud Act: Artificial Intelligence Disclosure in Commercial Transactions
Status ● Failed Effective N/A Passage Likelihood M

WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE

T-01 AI IDENTITY DISCLOSURE
1 OBLIGATION T-01.1

How Is This Bill Enforced

Enforcement Authority
Enforced through the Illinois Consumer Fraud and Deceptive Business Practices Act framework. The Illinois Attorney General has authority to investigate and bring enforcement actions for unlawful practices under the Act, and consumers have a private right of action under Section 10a of the Act for violations.
Private Right of Action
private right of action under Section 10a of the Act for violations.
Penalties
Remedies are those generally available under the Illinois Consumer Fraud and Deceptive Business Practices Act, including actual damages, punitive damages, injunctive relief, and reasonable attorney's fees and costs under 815 ILCS 505/10a. The bill expressly provides that the conduct is unlawful 'whether or not a consumer is in fact misled, deceived, or damaged,' eliminating any actual-harm requirement for the underlying violation.

What This Bill Requires

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.

Statutory Text
Analysis & Obligations
815 ILCS 505/2HHHH
Commercial transactions; artificial intelligence disclosure
Deployer

Sec. 2HHHH 1 Sec. 2HHHH. Commercial transactions; artificial intelligence disclosure. It is an unlawful practice within the meaning of this Act, whether or not a consumer is in fact misled, deceived, or damaged, for any person to engage in a commercial transaction or trade practice with a consumer in which: (1) the consumer is communicating or otherwise interacting with a chatbot, artificial intelligence agent, avatar, or other computer technology that engages in a textual or aural conversation; (2) the communication may mislead or deceive a reasonable consumer to believe that the consumer is communicating with a human representative; and (3) the consumer is not notified in a clear and conspicuous manner that the consumer is communicating with an artificial intelligence system and not a human representative.

Sec. 99 Section 99. Effective date. This Act takes effect January 1, 2026.

Section 2HHHH adds a new unlawful practice to the Illinois Consumer Fraud and Deceptive Business Practices Act. The provision targets undisclosed use of conversational AI — chatbots, AI agents, avatars, or similar text- or voice-based systems — in commercial transactions or trade practices with consumers.

The trigger has three conjunctive elements: (1) the consumer is interacting with a covered conversational AI; (2) the communication may mislead a reasonable consumer into believing they are speaking with a human; and (3) no clear and conspicuous AI-identity notice is given. Notably, the statute makes the conduct unlawful whether or not a consumer is in fact misled, deceived, or damaged, removing any actual-harm requirement for the underlying violation. Because the obligation is folded into the Consumer Fraud Act, the Attorney General and private plaintiffs may invoke the full suite of UDAP remedies, including statutory attorney's fees.

Compliance actions 1 item
1
Any person engaging in a commercial transaction or trade practice through a chatbot, AI agent, avatar, or other conversational AI must give the consumer a clear and conspicuous notice that they are communicating with an AI system whenever a reasonable consumer could be misled into believing they are speaking with a human.
T-01.1

Passage Likelihood

Failed
Status Failed
Final action House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee

Legislative History

2025-02-06 Filed with the Clerk by Rep. Abdelnasser Rashid
2025-02-06 First Reading
2025-02-06 Referred to Rules Committee
2025-03-04 Assigned to Consumer Protection Committee
2025-03-13 Added Co-Sponsor Rep. Kam Buckner
2025-03-13 Added Co-Sponsor Rep. Theresa Mah
2025-03-18 Do Pass / Short Debate Consumer Protection Committee; 006-003-000
2025-03-19 Placed on Calendar 2nd Reading - Short Debate
2025-03-26 Second Reading - Short Debate
2025-03-26 Held on Calendar Order of Second Reading - Short Debate
2025-04-07 House Floor Amendment No. 1 Filed with Clerk by Rep. Abdelnasser Rashid
2025-04-07 House Floor Amendment No. 1 Referred to Rules Committee
2025-04-08 House Floor Amendment No. 1 Rules Refers to Consumer Protection Committee
2025-04-08 House Floor Amendment No. 1 Recommends Be Adopted Consumer Protection Committee; 005-003-001
2025-04-10 Added Co-Sponsor Rep. Camille Y. Lilly
2025-04-11 Rule 19(a) / Re-referred to Rules Committee
2025-04-11 House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee
2026-02-24 Approved for Consideration Rules Committee; 005-000-000
2026-02-24 Placed on Calendar 2nd Reading - Short Debate
2026-02-24 House Floor Amendment No. 1 Recommends Be Adopted Rules Committee; 005-000-000
2026-04-17 Rule 19(a) / Re-referred to Rules Committee
2026-04-17 House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee

Sources

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Entry Last Reviewed

2026-05-10
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