Regulon — PA-HB-1857 · PA HB 1857 (AI Transparency in Services)

Summary

Requires business entities that use AI in consumer interactions with Pennsylvania residents to disclose that use clearly and conspicuously at the beginning of the interaction, in plain language accessible to individuals with disabilities or limited English proficiency. When AI is involved in a high-impact decision — one materially affecting legal rights, employment, housing, credit, education, health care, or government benefits — the business must also inform the consumer of their right to human review, and must commence that review within 14 days and deliver a decision within 28 days. Upon request, the business must provide timely access to a human representative if one is reasonably available. Enforcement is by the Attorney General under the Unfair Trade Practices and Consumer Protection Law, with civil penalties up to $2,500 per violation.

Enforcement & Penalties

Enforcement Authority

Attorney General enforcement. The Attorney General may bring a civil action under the Unfair Trade Practices and Consumer Protection Law (Act of December 17, 1968, P.L.1224, No.387) to enforce this act. The statute preserves any other remedy available at law but does not itself create an express private right of action. Enforcement is agency-initiated through the Attorney General's office.

Penalties

Civil penalties not exceeding $2,500 per violation, brought by the Attorney General under the Unfair Trade Practices and Consumer Protection Law. The statute provides that nothing shall be construed to limit any other remedy available at law. No statutory minimum floor is specified — $2,500 is a cap, not a minimum.

Who Is Covered

"Business entity." A for-profit corporation, limited liability company, partnership, limited liability partnership or Subchapter S corporation formed or organized under the laws of this Commonwealth or another jurisdiction.

Compliance Obligations 5 obligations · click obligation ID to open requirement page

T-01 AI Identity Disclosure · T-01.1 · Deployer · Automated DecisionmakingGeneral Consumer App

Section 3(a)-(b)

Plain Language

Any business entity that uses AI in any part of a consumer interaction with a Pennsylvania resident must disclose that fact clearly and conspicuously at the beginning of the interaction. The disclosure must be in plain language, delivered orally or in writing, and must be reasonably accessible to individuals with disabilities or limited English proficiency. This is an unconditional disclosure — it is triggered whenever AI is used in any part of the interaction, regardless of whether the consumer would otherwise be misled.

Statutory Text

(a) Duty of business entity.--A business entity that uses artificial intelligence in any part of a consumer interaction shall disclose the use of artificial intelligence in a clear and conspicuous manner to the consumer at the beginning of the consumer interaction. (b) Format.--The business entity shall deliver the disclosure in plain language, orally or in writing, which language must be reasonably accessible to an individual with a disability or limited English proficiency.

H-01 Human Oversight of Automated Decisions · H-01.3 · Deployer · Automated DecisionmakingGeneral Consumer App

Section 3(c)

Plain Language

When a consumer requests it, the business entity must provide timely access to a human representative, provided one is reasonably available. This is a consumer-initiated right to escalate from an AI interaction to a human, but it is conditioned on reasonable availability — if no human representative is reasonably available, the obligation does not apply. This is distinct from the right to human review of high-impact decisions in Section 4; this provision applies to any consumer interaction, not just high-impact decisions.

Statutory Text

(c) Human representatives.--Upon request, the business entity shall provide the consumer with timely access to a human representative, if a human representative is reasonably available.

H-01 Human Oversight of Automated Decisions · H-01.3 H-01.4 · Deployer · Automated Decisionmaking

Section 4(a)-(b)

Plain Language

Consumers have the right to request human review of any AI-involved consumer interaction that constitutes a high-impact decision — one that materially affects their legal rights, employment, housing, credit, education, health care, or access to government benefits. When a business entity uses AI in a consumer interaction involving a high-impact decision, it must clearly and conspicuously disclose the consumer's right to request human review. Unlike the general human representative access right in Section 3(c), this right is unconditional — there is no 'reasonably available' qualifier.

Statutory Text

(a) Right to human review.--A consumer shall have the right to request that a human representing the business entity review any consumer interaction involving a high-impact decision. (b) Notice.--When the conditions under section 3 are met requiring the disclosure of the use of artificial intelligence in a consumer interaction and involve a high-impact decision, the business entity shall disclose in a clear and conspicuous manner that the consumer has a right to request a human review by the business entity involving the high-impact decision.

H-01 Human Oversight of Automated Decisions · H-01.4 · Deployer · Automated Decisionmaking

Section 4(c)

Plain Language

When a consumer requests human review of a high-impact decision, the business entity must begin the review within 14 calendar days and must complete the review and deliver a decision to the consumer within 28 calendar days. These are hard deadlines measured from the date of the request. There is no extension mechanism or exception for complexity.

Statutory Text

(c) Time frame.--A business entity shall commence the human review not later than 14 days after the request for a human review is made. The human review shall be completed and the decision delivered to the requester not later than 28 days after the request for a human review is made.

Other · Automated DecisionmakingGeneral Consumer App

Section 5(b)

Plain Language

This savings clause confirms that the Attorney General enforcement mechanism in Section 5 does not displace or limit any other legal remedies that may be available under existing Pennsylvania law. It does not itself create a private right of action — it merely preserves whatever remedies already exist independently. No new compliance obligation arises from this provision.

Statutory Text

(b) Private right of action.--Nothing in this section shall be construed to limit any other remedy available at law.