(a)(1) 1 IN GENERAL.—A covered entitycovered entityThe term "covered entity" means any person, company, or organization that deploys or operates a covered tool for consumer-facing use with more than 50,000 monthly active users.Sec. 2(h)(4) shall disclose when the response of a covered toolcovered toolThe term "covered tool"— (A) means an AI interactive computer service or software application that— (i) generates responses that are not fully predetermined; and (ii) accepts open-ended natural-language or multimodal user input and produces adaptive or context-responsive output; and (B) includes an AI chatbot and a generative search synthesis feature.Sec. 2(h)(5)— (A) mentions, recommends, presents, or favorably mentions a product, service, or entity pursuant to a commercial arrangementcommercial arrangementThe term "commercial arrangement" means an exchange of money, data, preferential access, or other consideration that influences the content of an AI-generated response.Sec. 2(h)(3), regardless of whether the user explicitly requested a product recommendation; (B) is general in nature and influenced by a commercial arrangementcommercial arrangementThe term "commercial arrangement" means an exchange of money, data, preferential access, or other consideration that influences the content of an AI-generated response.Sec. 2(h)(3), including through a brand-specific mention, ranking, or omission embedded within advice, how-to, or informational response not framed as product queries; (C) is generated using a system prompt, retrieval-augmented generation source, or fine-tuning data that has been provided or funded by a third party under a commercial arrangementcommercial arrangementThe term "commercial arrangement" means an exchange of money, data, preferential access, or other consideration that influences the content of an AI-generated response.Sec. 2(h)(3); or (D) contains an affiliate link or referral code, whether embedded or appended.

(a)(2) 1 FORMS OF DISCLOSURE.—A disclosure under paragraph (1) shall be as follows: (A) Clear and conspicuous, visible without scrolling, in plain language, and provided with or before the display of relevant content. (B) Identify the specific nature of the relationship (such as a paid promotion, sponsored, or affiliate partnership). (C) Retained if the conversation is saved, exported, or shared. (D) Not obscured by design, color, font size, or placement. (E) With regard to a voice-based covered toolcovered toolThe term "covered tool"— (A) means an AI interactive computer service or software application that— (i) generates responses that are not fully predetermined; and (ii) accepts open-ended natural-language or multimodal user input and produces adaptive or context-responsive output; and (B) includes an AI chatbot and a generative search synthesis feature.Sec. 2(h)(5), delivered without any audio effect that reduces salience (such as a lower volume or pitch shift).

(b) 2 PROHIBITED PRACTICES.—A covered entitycovered entityThe term "covered entity" means any person, company, or organization that deploys or operates a covered tool for consumer-facing use with more than 50,000 monthly active users.Sec. 2(h)(4) may not allow a covered toolcovered toolThe term "covered tool"— (A) means an AI interactive computer service or software application that— (i) generates responses that are not fully predetermined; and (ii) accepts open-ended natural-language or multimodal user input and produces adaptive or context-responsive output; and (B) includes an AI chatbot and a generative search synthesis feature.Sec. 2(h)(5) to do the following: (1) Instruct an AIAIThe term "AI" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(h)(1) system to deny being AIAIThe term "AI" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(h)(1) or be in a commercial relationship, when directly asked. (2) Use design patterns that obscure or minimize required disclosures. (3) Present sponsored contentsponsored contentThe term "sponsored content" means an AI-generated response that— (A) mentions, recommends, or promotes a specific product, service, or entity; and (B) is produced in whole or in part due to a commercial arrangement between the covered entity and a third party.Sec. 2(h)(7) as the product of organic AIAIThe term "AI" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(h)(1) reasoning when the content is not.

(c)(1) 4 COMMERCIAL ARRANGEMENTcommercial arrangementThe term "commercial arrangement" means an exchange of money, data, preferential access, or other consideration that influences the content of an AI-generated response.Sec. 2(h)(3) REGISTRY REQUIRED.—A covered entitycovered entityThe term "covered entity" means any person, company, or organization that deploys or operates a covered tool for consumer-facing use with more than 50,000 monthly active users.Sec. 2(h)(4) shall maintain an internal registry of each third-party commercial arrangementcommercial arrangementThe term "commercial arrangement" means an exchange of money, data, preferential access, or other consideration that influences the content of an AI-generated response.Sec. 2(h)(3) that influences AIAIThe term "AI" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(h)(1)-generated content, updated in real time.

(c)(2) 3 REQUIREMENT TO CONFIRM COMMERCIAL ARRANGEMENTcommercial arrangementThe term "commercial arrangement" means an exchange of money, data, preferential access, or other consideration that influences the content of an AI-generated response.Sec. 2(h)(3).—A covered entitycovered entityThe term "covered entity" means any person, company, or organization that deploys or operates a covered tool for consumer-facing use with more than 50,000 monthly active users.Sec. 2(h)(4) shall provide a user with the ability to ask, in a given session or conversation, whether any response the user received was subject to a commercial arrangementcommercial arrangementThe term "commercial arrangement" means an exchange of money, data, preferential access, or other consideration that influences the content of an AI-generated response.Sec. 2(h)(3).

(d) FTC RULEMAKING AUTHORITY.—Not later than 180 days after the date of the enactment of this Act, and every 3 years thereafter (to account for changes in AIAIThe term "AI" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(h)(1) technology), the Commission shall issue regulations, under section 553 of title 5, United StatesStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8) Code, as the Commission determines necessary to carry out the provisions of this Act.

(e) ENFORCEMENT BY FEDERAL TRADE COMMISSION.— (1) UNFAIR OR DECEPTIVE ACTS OR PRACTICES.—A violation of this section or a regulation promulgated under this section shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices. (2) POWERS OF COMMISSION.—The Federal Trade Commission shall enforce this section and any regulation promulgated under this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section. Any person who violates this section or a regulation promulgated under this section shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act.

(f) ACTIONS BY STATESStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8).— (1) IN GENERAL.—In any case in which the attorney general of a StateStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8), or an official or agency of a StateStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8), has reason to believe that an interest of the residents of such StateStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8) has been or is threatened or adversely affected by an act or practice in violation of this section or a regulation promulgated under this section, the StateStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8), as parens patriae, may bring a civil action on behalf of the residents of the StateStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8) in an appropriate StateStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8) court or an appropriate district court of the United StatesStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8) to— (A) enjoin such act or practice; (B) enforce compliance with such subsection or such regulation; (C) obtain damages, restitution, or other compensation on behalf of residents of the StateStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8); or (D) obtain such other legal and equitable relief as the court may consider to be appropriate.

(g) PRIVATE RIGHT OF ACTION.— (1) IN GENERAL.—A person injured by an act or practice in violation of this section or a regulation promulgated under this section may bring in an appropriate StateStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8) court or an appropriate district court of the United StatesStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8)— (A) an action to enjoin the violation; (B) an action to recover damages for actual monetary loss from the violation, or to receive up to $1,000 in damages for each such violation, whichever is greater; or (C) both such actions. (2) WILLFUL OR KNOWING VIOLATIONS.—If the court finds that the defendant acted willfully or knowingly in committing a violation described in paragraph (1), the court may, in its discretion, increase the amount of the award to an amount equal to not more than 3 times the amount available under paragraph (1)(B). (3) COSTS AND ATTORNEY'S FEES.—The court shall award to a prevailing plaintiff in an action under this subsection the costs of such action and reasonable attorney's fees, as determined by the court. (4) LIMITATION.—An action may be commenced under this subsection not later than 2 years after the date on which the person first discovered or had a reasonable opportunity to discover the violation. (5) NONEXCLUSIVE REMEDY.—The remedy provided by this subsection shall be in addition to any other remedies available to the person.

(h) DEFINITIONS.—In this section: (1) AIAIThe term "AI" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(h)(1).—The term "AIAIThe term "AI" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(h)(1)" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401). (2) AI CHATBOTAI chatbotThe term "AI chatbot" means any software system that uses a large language model or similar technology to generate conversational responses to user queries that is made available to the public.Sec. 2(h)(2).—The term "AI chatbotAI chatbotThe term "AI chatbot" means any software system that uses a large language model or similar technology to generate conversational responses to user queries that is made available to the public.Sec. 2(h)(2)" means any software system that uses a large language model or similar technology to generate conversational responses to user queries that is made available to the public. (3) COMMERCIAL ARRANGEMENTcommercial arrangementThe term "commercial arrangement" means an exchange of money, data, preferential access, or other consideration that influences the content of an AI-generated response.Sec. 2(h)(3).—The term "commercial arrangementcommercial arrangementThe term "commercial arrangement" means an exchange of money, data, preferential access, or other consideration that influences the content of an AI-generated response.Sec. 2(h)(3)" means an exchange of money, data, preferential access, or other consideration that influences the content of an AIAIThe term "AI" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(h)(1)-generated response. (4) COVERED ENTITYcovered entityThe term "covered entity" means any person, company, or organization that deploys or operates a covered tool for consumer-facing use with more than 50,000 monthly active users.Sec. 2(h)(4).—The term "covered entitycovered entityThe term "covered entity" means any person, company, or organization that deploys or operates a covered tool for consumer-facing use with more than 50,000 monthly active users.Sec. 2(h)(4)" means any person, company, or organization that deploys or operates a covered toolcovered toolThe term "covered tool"— (A) means an AI interactive computer service or software application that— (i) generates responses that are not fully predetermined; and (ii) accepts open-ended natural-language or multimodal user input and produces adaptive or context-responsive output; and (B) includes an AI chatbot and a generative search synthesis feature.Sec. 2(h)(5) for consumer-facing use with more than 50,000 monthly active users. (5) COVERED TOOLcovered toolThe term "covered tool"— (A) means an AI interactive computer service or software application that— (i) generates responses that are not fully predetermined; and (ii) accepts open-ended natural-language or multimodal user input and produces adaptive or context-responsive output; and (B) includes an AI chatbot and a generative search synthesis feature.Sec. 2(h)(5).— ... (6) GENERATIVE SEARCH SYNTHESIS FEATUREgenerative search synthesis featureThe term "generative search synthesis feature"— (A) means any feature of an online search engine or information-retrieval service that uses a large language model or similar technology to produce, in response to a search by the user, a synthesized narrative answer, summary, or recommendation that is displayed to the user in lieu of, or more prominently than, the ranked list of hyperlinks to third-party sources that the service would otherwise return; and (B) includes any feature that generates the answer, summary, or recommendations described in subparagraph (A) automatically as part of a standard results page, regardless of whether the user separately requested a summary and whether source citations accompany the generated output.Sec. 2(h)(6).— ... (7) SPONSORED CONTENTsponsored contentThe term "sponsored content" means an AI-generated response that— (A) mentions, recommends, or promotes a specific product, service, or entity; and (B) is produced in whole or in part due to a commercial arrangement between the covered entity and a third party.Sec. 2(h)(7).— ... (8) STATEStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8).— ... (9) VOICE-BASED COVERED TOOLSvoice-based covered toolsThe term "voice-based covered tools" means a covered tool that delivers responses primarily through AI-generated speech.Sec. 2(h)(9).—The term "voice-based covered toolsvoice-based covered toolsThe term "voice-based covered tools" means a covered tool that delivers responses primarily through AI-generated speech.Sec. 2(h)(9)" means a covered toolcovered toolThe term "covered tool"— (A) means an AI interactive computer service or software application that— (i) generates responses that are not fully predetermined; and (ii) accepts open-ended natural-language or multimodal user input and produces adaptive or context-responsive output; and (B) includes an AI chatbot and a generative search synthesis feature.Sec. 2(h)(5) that delivers responses primarily through AIAIThe term "AI" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(h)(1)-generated speech.

(i) RELATION TO OTHER LAWS.— (1) RULE OF CONSTRUCTION.—Nothing in this section may be construed to limit the authority of the Commission, the Federal Communications Commission, or StateStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8) consumer protection agencies. (2) PREEMPTION.—This section does not preempt a StateStateThe term "State" means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.Sec. 2(h)(8) law that provides greater consumer protection related to a covered toolcovered toolThe term "covered tool"— (A) means an AI interactive computer service or software application that— (i) generates responses that are not fully predetermined; and (ii) accepts open-ended natural-language or multimodal user input and produces adaptive or context-responsive output; and (B) includes an AI chatbot and a generative search synthesis feature.Sec. 2(h)(5).

(j) EFFECTIVE DATE.—This section shall take effect 12 months after the date of the enactment of this section.