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.
(1)–(2) 1 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.
1 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.
Section 1 establishes the bill's core substantive obligation. It prohibits a person from engaging in a commercial transaction or trade practice with a consumer where two conditions are met: (1) the transaction requires the consumer to communicate with a chatbot, AI agent, avatar, or other conversational computer technology, and (2) the consumer could reasonably believe they are engaging with a human. The prohibition is lifted if the consumer receives clear and conspicuous notice at the outset that they are not communicating with a human.
The provision uses a reasonable belief standard — the obligation is triggered not by the system's actual nature but by whether a consumer could reasonably be misled. The bill does not formally define any of the covered technology terms, leaving their scope to be determined by the broad descriptive language.
(1)–(3) 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.
Section 2 establishes the enforcement mechanism for the disclosure obligation in Section 1. It creates a private right of action for affected consumers and concurrent enforcement authority for the attorney general. Remedies include actual damages, liquidated damages of $1,000 per violation, or in a class action a maximum of $10 million. The prevailing party may recover attorney's fees and costs.
The section also includes a carve-out for internet service providers involved only in routine transmission, shielding passive intermediaries from private suit liability.
The attorney general may seek injunctive relief against any person that fails to comply with section 1 of this Act.
Section 3 grants the attorney general independent authority to seek injunctive relief against any person that fails to comply with the disclosure obligation in Section 1. This supplements the damages remedy in Section 2 by providing equitable enforcement.