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.
(A) As used in this Section, "automated systemAutomated system"automated system" means a chatbot, artificial intelligence agent, avatar, or other computer technology that engages in a textual or aural conversation and may mislead or deceive a reasonable person to believe the person is engaging with an actual human being.R.S. 51:1430(A)" means a chatbot, artificial intelligence agent, avatar, or other computer technology that engages in a textual or aural conversation and may mislead or deceive a reasonable person to believe the person is engaging with an actual human being.
Subsection A establishes the sole defined term in the bill: automated system. The definition is functionally scoped — it covers any chatbot, AI agent, avatar, or other computer technology that engages in textual or aural conversation and may mislead or deceive a reasonable person into believing they are engaging with a human. The definition is broad and technology-neutral, capturing current and future conversational AI systems used in commercial contexts.
(B)–(B)(1)–(B)(2) 1 It is an unfair or deceptive trade practice for a corporation, organization, or person to engage in a commercial transaction or trade practice with a consumer in this state in which the consumer is communicating or otherwise interacting with an automated systemAutomated system"automated system" means a chatbot, artificial intelligence agent, avatar, or other computer technology that engages in a textual or aural conversation and may mislead or deceive a reasonable person to believe the person is engaging with an actual human being.R.S. 51:1430(A) and either of the following applies: (1) The consumer is not notified in a clear and conspicuous manner that the consumer is communicating with an automated systemAutomated system"automated system" means a chatbot, artificial intelligence agent, avatar, or other computer technology that engages in a textual or aural conversation and may mislead or deceive a reasonable person to believe the person is engaging with an actual human being.R.S. 51:1430(A) and not a human being. (2) The consumer may reasonably believe he is engaging with a human.
Subsection B establishes the bill's core substantive obligation: it is an unfair or deceptive trade practice for any corporation, organization, or person to engage in a commercial transaction or trade practice with a Louisiana consumer through an automated system under two conditions — either (1) the consumer is not clearly and conspicuously notified that they are communicating with an automated system, or (2) the consumer may reasonably believe they are engaging with a human. Both conditions function as independent triggers; either alone constitutes a violation.
The obligation is notable for its breadth — it applies to any commercial actor, not just developers or deployers of AI systems, and does not limit the type of commercial transaction covered. The reasonable-belief prong in (B)(2) creates an independent obligation beyond the disclosure requirement in (B)(1): even if a disclosure is technically provided, a violation occurs if the consumer may still reasonably believe they are engaging with a human.
(C) A consumer subjected to a commercial transaction that does not comply with Subsection B of this Section may initiate a civil action against the corporation, organization, or person that engaged in that transaction.
Subsection C creates a private right of action, allowing any consumer subjected to a non-compliant commercial transaction to initiate a civil action against the violating corporation, organization, or person. This is a straightforward enforcement provision and does not impose a separate compliance obligation.
(D) A corporation, organization, or person that fails to comply with this Section with respect to any consumer is liable to the consumer for actual damages sustained by the consumer as a result of the violation plus statutory damages not to exceed one thousand dollars, or in the case of a class action, an amount the court determines for the class, not to exceed ten million dollars.
Subsection D establishes the damages framework for consumer actions. Violators are liable for actual damages plus statutory damages not to exceed $1,000 per consumer, or in a class action, an amount determined by the court not to exceed $10 million. Notably, actual damages are not required for statutory damages to apply — the consumer need only show a violation of Subsection B.
(E) The attorney general may seek injunctive relief against a corporation, organization, or person that fails to comply with this Section.
Subsection E authorizes the attorney general to seek injunctive relief against any corporation, organization, or person that fails to comply with the section. This provides a public enforcement mechanism alongside the private right of action.
(F) A corporation, organization, or person found by a court to be in violation of this Section is liable for a civil penalty not to exceed five million dollars.
Subsection F imposes civil penalties of up to $5 million upon a court finding of a violation. This is an additional enforcement consequence beyond the consumer damages in Subsection D and the injunctive relief in Subsection E.