SB-170
SD · State · USA
SD
USA
● Pending
Proposed Effective Date
2026-07-01
South Dakota Senate Bill 170 — An Act to require the provision of a notice to consumers, interacting with certain chatbots or other human-simulating computer technologies that could mislead or deceive the consumer
Requires any person engaging in a commercial transaction or trade practice with a consumer to disclose, clearly and conspicuously at the outset, when the consumer is interacting with a chatbot, AI agent, avatar, or other conversational computer technology rather than a human — but only when a consumer could reasonably believe they are engaging with a human. The bill is added to South Dakota's existing deceptive trade practices chapter (37-24). Enforcement is available through both a private right of action (with $1,000 per-violation liquidated damages and a $10 million class action cap) and attorney general injunctive relief. Internet service providers involved only in routine transmission are carved out from private suit liability.
Summary

Requires any person engaging in a commercial transaction or trade practice with a consumer to disclose, clearly and conspicuously at the outset, when the consumer is interacting with a chatbot, AI agent, avatar, or other conversational computer technology rather than a human — but only when a consumer could reasonably believe they are engaging with a human. The bill is added to South Dakota's existing deceptive trade practices chapter (37-24). Enforcement is available through both a private right of action (with $1,000 per-violation liquidated damages and a $10 million class action cap) and attorney general injunctive relief. Internet service providers involved only in routine transmission are carved out from private suit liability.

Enforcement & Penalties
Enforcement Authority
Private right of action and attorney general enforcement. A consumer subjected to a non-compliant commercial transaction or trade practice may bring a civil action against the violating person. The attorney general may also bring a civil action and may seek injunctive relief. Internet service providers involved only in routine transmission are exempt from private suit. No cure period or safe harbor is specified beyond the disclosure itself.
Penalties
Plaintiff may recover actual damages, or liquidated damages of $1,000 per violation, or in the case of a class action an amount not exceeding $10,000,000. The prevailing party may also recover reasonable attorney's fees and costs. The attorney general may seek injunctive relief. Liquidated damages do not require proof of actual monetary harm.
Who Is Covered
Compliance Obligations 3 obligations · click obligation ID to open requirement page
T-01 AI Identity Disclosure · T-01.1 · Deployer · Chatbot
Section 1 (new section added to ch. 37-24)
Plain Language
Any person conducting a commercial transaction or trade practice with a consumer must provide a clear and conspicuous disclosure at the outset of the interaction that the consumer is not communicating with a human, whenever the interaction involves a chatbot, AI agent, avatar, or other conversational computer technology and a consumer could reasonably believe they are engaging with a human. The disclosure is a safe harbor — if it is made clearly and conspicuously at the outset, the prohibition does not apply. The trigger is a reasonable-person standard: if the AI system is obviously non-human (e.g., a basic menu-driven phone tree), the obligation may not apply. The scope is limited to commercial transactions and trade practices — non-commercial AI interactions are not covered.
Statutory Text
Except as otherwise provided in this section, a person may not engage in a commercial transaction or trade practice with a consumer if: (1) The transaction or practice requires the consumer to communicate with or interact with a chatbot, an artificial intelligence agent, an avatar, or another form of computer technology that engages in a textual or aural conversation; and (2) The consumer could reasonably believe that the consumer is engaging with human. The prohibition set forth in this section does not apply if the consumer is notified, in a clear and conspicuous fashion, at the outset of the transaction or practice, that the consumer is not communicating with another human.
Other · Chatbot
Section 2 (new section added to ch. 37-24)
Plain Language
This provision creates the private right of action and attorney general enforcement mechanism for violations of Section 1's disclosure requirement. It specifies available remedies — actual damages, $1,000 liquidated damages per violation, or up to $10 million in a class action — plus attorney's fees and costs for the prevailing party. It also carves out internet service providers involved only in routine transmission. This provision creates no new compliance obligation; it activates the enforcement framework for the disclosure duty in Section 1.
Statutory Text
Except as otherwise provided in this section, either a consumer subjected to a commercial transaction or trade practice that does not comply with section 1 of this Act, or the attorney general, may bring a civil action against the violating person, except as provided below, and may recover: (1) Actual damages; (2) Liquidated damages in the amount of one thousand dollars for each violation; or (3) In the case of a class action, an amount not exceeding ten million dollars. The prevailing party may also recover reasonable attorney's fees and costs. Nothing in this section permits a cause of action against an internet service provider who is involved only in the routine transmission of the violative transaction or trade practice over the provider's computer network.
Other · Chatbot
Section 3 (new section added to ch. 37-24)
Plain Language
This provision authorizes the attorney general to seek injunctive relief against any person that violates the AI disclosure requirement in Section 1. It creates no new compliance obligation — it is a supplemental enforcement tool giving the attorney general the ability to obtain a court order compelling compliance.
Statutory Text
The attorney general may seek injunctive relief against any person that fails to comply with section 1 of this Act.