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 (2026 Regular Session)
Establishes that it is an unfair or deceptive trade practice in Louisiana for any corporation, organization, or person to engage in a commercial transaction with a consumer using an automated system (chatbot, AI agent, avatar, or similar technology) without clearly disclosing that the consumer is interacting with a non-human system or where the consumer may reasonably believe they are engaging with a human. The bill creates a private right of action for affected consumers, with actual damages plus statutory damages up to $1,000 per consumer (or up to $10 million for a class). The Attorney General may seek injunctive relief, and courts may impose civil penalties up to $5 million. The bill applies only in commercial transaction contexts and does not cover non-commercial AI interactions.
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.
2026-02-27 First appeared in the Interim Calendar on 2/27/2026. First appeared in the Interim Calendar on 2/27/2026.
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
2026-04-02
AI generated
Summary

Establishes that it is an unfair or deceptive trade practice in Louisiana for any corporation, organization, or person to engage in a commercial transaction with a consumer using an automated system (chatbot, AI agent, avatar, or similar technology) without clearly disclosing that the consumer is interacting with a non-human system or where the consumer may reasonably believe they are engaging with a human. The bill creates a private right of action for affected consumers, with actual damages plus statutory damages up to $1,000 per consumer (or up to $10 million for a class). The Attorney General may seek injunctive relief, and courts may impose civil penalties up to $5 million. The bill applies only in commercial transaction contexts and does not cover non-commercial AI interactions.

Enforcement & Penalties
Enforcement Authority
Private right of action for consumers subjected to non-compliant commercial transactions. The Attorney General may seek injunctive relief against violators. No cure period or safe harbor is specified.
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. The Attorney General may seek injunctive relief. A court may impose a civil penalty not to exceed $5,000,000. Statutory damages do not appear to require proof of actual monetary harm — the statute provides actual damages 'plus' statutory damages, suggesting statutory damages are available independently.
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 2 obligations · click obligation ID to open requirement page
T-01 AI Identity Disclosure · T-01.1 · Deployer · Chatbot
R.S. 51:1430(B)
Plain Language
Any corporation, organization, or person conducting a commercial transaction with a Louisiana consumer using an automated system must provide clear and conspicuous notice that the consumer is interacting with an automated system rather than a human. A violation occurs under either of two independent prongs: (1) the consumer is not given clear and conspicuous notice, or (2) the consumer may reasonably believe they are engaging with a human. This means disclosure alone may be insufficient — if a reasonable consumer could still believe they are talking to a human despite the disclosure, the second prong may still be triggered. The obligation applies only in commercial transaction or trade practice contexts; non-commercial uses of AI are not covered.
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.
Other · Chatbot
R.S. 51:1430(C)-(F)
Plain Language
These subsections establish the enforcement and remedies framework for violations of the disclosure obligation in subsection B. They create a private right of action for consumers, specify that violators are liable for actual damages plus up to $1,000 in statutory damages (or up to $10 million in class actions), authorize the Attorney General to seek injunctive relief, and impose civil penalties up to $5 million. These are enforcement provisions, not independent compliance obligations — they are captured in the law-level enforcement_authority and damages fields.
Statutory Text
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. 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. E. The attorney general may seek injunctive relief against a corporation, organization, or person that fails to comply with this Section. 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.