Laws & Statutes › LA › LA-HB-425
HB-425
LA · State · USA
LA
USA
● Pending
Proposed Effective Date
2026-08-01
Louisiana House Bill No. 425 — Unfair or Deceptive Trade Practice; Misleading Communications with Artificial Intelligence Systems
Establishes that it is an unfair or deceptive trade practice for any corporation, organization, or person to engage in a commercial transaction with a Louisiana consumer through an automated system (chatbot, AI agent, avatar, or similar technology) without clearly and conspicuously notifying the consumer that they are interacting with an automated system rather than a human. The violation is triggered when the consumer either is not notified or may reasonably believe they are engaging with a human. Creates a private right of action for affected consumers, with actual damages plus statutory damages up to $1,000 per consumer and class action caps of $10 million, plus civil penalties up to $5 million. The Attorney General may also seek injunctive relief.
Passage Likelihood
Low
Chamber No passage
Committee No action
Majority party (No data)
Bipartisan No
Prior session None
Legislative History
2026-02-25 introduced Prefiled.
2026-02-25 committee referral Under the rules, provisionally referred to the Committee on Commerce.
2026-03-09 committee referral Read by title, under the rules, referred to the Committee on Commerce.
Mapped Requirements
T-01 AI Identity Disclosure
Official Sources
Full Text ↗
Entry Last Reviewed
2026-03-28
AI generated
Summary

Establishes that it is an unfair or deceptive trade practice for any corporation, organization, or person to engage in a commercial transaction with a Louisiana consumer through an automated system (chatbot, AI agent, avatar, or similar technology) without clearly and conspicuously notifying the consumer that they are interacting with an automated system rather than a human. The violation is triggered when the consumer either is not notified or may reasonably believe they are engaging with a human. Creates a private right of action for affected consumers, with actual damages plus statutory damages up to $1,000 per consumer and class action caps of $10 million, plus civil penalties up to $5 million. The Attorney General may also seek injunctive relief.

Enforcement & Penalties
Enforcement Authority
Private right of action for consumers subjected to a non-compliant commercial transaction. The Attorney General may seek injunctive relief against violating corporations, organizations, or persons. A consumer who was subjected to a commercial transaction that does not comply with the disclosure requirement may initiate a civil action against the entity that engaged in that transaction.
Penalties
Actual damages sustained by the consumer as a result of the violation plus statutory damages not to exceed $1,000 per consumer, or in the case of a class action, an amount the court determines for the class not to exceed $10,000,000. Civil penalty not to exceed $5,000,000 for a corporation, organization, or person found by a court to be in violation. The Attorney General may seek injunctive relief. Statutory damages do not appear to require proof of actual monetary harm — the statute provides for actual damages 'plus' statutory damages, indicating statutory damages are additive and independent.
Who Is Covered
What Is Covered
"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.
Compliance Obligations 1 obligation · click obligation ID to open requirement page
T-01 AI Identity Disclosure · T-01.1 · Deployer · Chatbot
R.S. 51:1430(B)(1)-(2)
Plain Language
Any corporation, organization, or person that uses an automated system in a commercial transaction with a Louisiana consumer must clearly and conspicuously notify the consumer that they are communicating with an automated system and not a human being. The violation is a two-pronged disjunctive test: it is triggered if the consumer is not notified OR if the consumer may reasonably believe they are engaging with a human — meaning that even if some form of notification is given, it is insufficient if a consumer could still reasonably believe they are speaking with a human. Note that this obligation applies only in the context of a commercial transaction or trade practice, not to all AI interactions generally. The definition of 'automated system' itself contains a limiting element — it must be technology that 'may mislead or deceive a reasonable person' — so systems that are obviously non-human in character may fall outside the definition entirely.
Statutory Text
B. 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 system 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 system and not a human being. (2) The consumer may reasonably believe he is engaging with a human.