Regulon.AI — SD-SB-170 · SD SB 170 (AI Chatbot Consumer Disclosure)

SB-170

SD · State · USA

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

Prohibits any person from engaging in a commercial transaction or trade practice with a consumer where the consumer must interact with a chatbot, AI agent, avatar, or other conversational computer technology and could reasonably believe they are communicating with a human — unless the person provides clear and conspicuous notice at the outset that the consumer is not communicating with a human. The bill is added to South Dakota's consumer protection chapter (SDCL 37-24). Enforcement is available through both private civil actions and the attorney general, with liquidated damages of $1,000 per violation and a $10 million class action cap. Internet service providers involved only in routine transmission are expressly excluded from private suit.

Summary

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 of the violative transaction over their network are excluded from private suit. No cure period or safe harbor is specified.

Penalties

Plaintiff may recover actual damages or liquidated damages of $1,000 per violation. In a class action, recovery may not exceed $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 1 obligation · 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

A person conducting a commercial transaction or trade practice may not require a consumer to interact with a chatbot, AI agent, avatar, or other conversational technology if the consumer could reasonably believe they are communicating with a human — unless the person provides clear and conspicuous notice at the outset of the interaction that the consumer is not speaking with a human. The obligation is conditional: it applies only when two elements are met — (1) the interaction uses conversational AI technology, and (2) a reasonable consumer could be misled into thinking they are dealing with a human. Providing the notice at the outset is a safe harbor that satisfies the requirement. The scope is limited to commercial transactions and trade practices — non-commercial uses of conversational AI 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.