(a)(1) 1 IN GENERAL.—A covered entityCovered entityThe term "covered entity" means an individual or company that deploys an AI chatbot.Sec. 2(g)(5) may not provide the generation of output from an AI chatbotAI chatbotThe term "AI chatbot" means a system that uses artificial intelligence to engage in interactive conversations with a user similar to the communications that an individual would have with a human.Sec. 2(g)(2), or disseminate marketing or advertising materials, that, from the perspective of a reasonable user— (A) indicate or implyImplyFor purposes of paragraph (1)(A), the term "imply"— (A) means a representation that a reasonable user would understand as claiming possession of a professional license, including a statement about credentials, qualifications, fictitious professional experience, or authoritative and conclusive recommendations, advice, or guidance that a reasonable user would understand is typically only provided by a practitioner of a covered profession; and (B) does not include providing general information, procedural guidance not specific to the circumstance of the user, or informative content that does not represent or suggest licensure.Sec. 2(a)(2) possession of an appropriate licenseAppropriate licenseThe term "appropriate license" means a permit or authorization required to practice a covered profession, as determined by the State in which the covered entity provides the service.Sec. 2(g)(1) to practice a covered professionCovered professionThe term "covered profession" means a profession that does any of the following: (A) Operates in the finance and insurance sector (as defined in NAICS Code 52). (B) Operates in the health care and social assistance sector (as defined in NAICS Code 62). (C) Provides legal services (as defined in NAICS code 5411). (D) Provides accounting, tax preparation, bookkeeping, and payroll services (as defined in NAICS code 5412).Sec. 2(g)(6) without, at that time, the possession of such license; and (B) falsely indicate or implyImplyFor purposes of paragraph (1)(A), the term "imply"— (A) means a representation that a reasonable user would understand as claiming possession of a professional license, including a statement about credentials, qualifications, fictitious professional experience, or authoritative and conclusive recommendations, advice, or guidance that a reasonable user would understand is typically only provided by a practitioner of a covered profession; and (B) does not include providing general information, procedural guidance not specific to the circumstance of the user, or informative content that does not represent or suggest licensure.Sec. 2(a)(2) that the output is provided or verified by a human in possession of an appropriate licenseAppropriate licenseThe term "appropriate license" means a permit or authorization required to practice a covered profession, as determined by the State in which the covered entity provides the service.Sec. 2(g)(1) to practice a covered professionCovered professionThe term "covered profession" means a profession that does any of the following: (A) Operates in the finance and insurance sector (as defined in NAICS Code 52). (B) Operates in the health care and social assistance sector (as defined in NAICS Code 62). (C) Provides legal services (as defined in NAICS code 5411). (D) Provides accounting, tax preparation, bookkeeping, and payroll services (as defined in NAICS code 5412).Sec. 2(g)(6).

(a)(2) 1 IMPLYImplyFor purposes of paragraph (1)(A), the term "imply"— (A) means a representation that a reasonable user would understand as claiming possession of a professional license, including a statement about credentials, qualifications, fictitious professional experience, or authoritative and conclusive recommendations, advice, or guidance that a reasonable user would understand is typically only provided by a practitioner of a covered profession; and (B) does not include providing general information, procedural guidance not specific to the circumstance of the user, or informative content that does not represent or suggest licensure.Sec. 2(a)(2) DEFINED.—For purposes of paragraph (1)(A), the term ''implyImplyFor purposes of paragraph (1)(A), the term "imply"— (A) means a representation that a reasonable user would understand as claiming possession of a professional license, including a statement about credentials, qualifications, fictitious professional experience, or authoritative and conclusive recommendations, advice, or guidance that a reasonable user would understand is typically only provided by a practitioner of a covered profession; and (B) does not include providing general information, procedural guidance not specific to the circumstance of the user, or informative content that does not represent or suggest licensure.Sec. 2(a)(2)''— (A) means a representation that a reasonable user would understand as claiming possession of a professional license, including a statement about credentials, qualifications, fictitious professional experience, or authoritative and conclusive recommendations, advice, or guidance that a reasonable user would understand is typically only provided by a practitioner of a covered professionCovered professionThe term "covered profession" means a profession that does any of the following: (A) Operates in the finance and insurance sector (as defined in NAICS Code 52). (B) Operates in the health care and social assistance sector (as defined in NAICS Code 62). (C) Provides legal services (as defined in NAICS code 5411). (D) Provides accounting, tax preparation, bookkeeping, and payroll services (as defined in NAICS code 5412).Sec. 2(g)(6); and (B) does not include providing general information, procedural guidance not specific to the circumstance of the user, or informative content that does not represent or suggest licensure.

(b) 2 Not later than 12 months after the date of the enactment of this section, the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4), in consultation with relevant agencies and stakeholders, including consumer advocacy organizations and technology experts, shall provide guidance on complying with the requirements of this section.

(c)(1) UNFAIR OR DECEPTIVE ACTS OR PRACTICES.—A violation of subsection (a) or a regulation promulgated under such subsection shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4) Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices.

(c)(2) POWERS OF COMMISSIONCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4).—The Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4) shall enforce subsection (a) and a regulation promulgated under such subsection 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 CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4) Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section. Any person who violates subsection (a) or a regulation promulgated under such subsection shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4) Act. Nothing in this Act may be construed to limit the authority of the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4) under any other provision of law.

(d)(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(g)(7), 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(g)(7), 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(g)(7) has been or is threatened or adversely affected by an act or practice in violation of subsection (a) or a regulation promulgated under such subsection, 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(g)(7), 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(g)(7) in 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(g)(7) to— (A) enjoin such act or practice; (B) enforce compliance with this subsection (a) or a regulation promulgated under such subsection; (C) obtain damages for actual monetary loss from the violation or up to $5,000 in damages for each such violation, whichever is greater, on behalf of residents 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(g)(7); or (D) obtain such other legal and equitable relief as the court may consider to be appropriate.

(d)(2) NOTICE.—Before filing an action under this subsection, the attorney general, official, or agency 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(g)(7) involved shall provide to the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4) a written notice of such action and a copy of the complaint for such action. If the attorney general, official, or agency determines it is not feasible to provide the notice described in this paragraph before the filing of the action, the attorney general, official, or agency shall provide written notice of the action and a copy of the complaint to the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4) immediately upon the filing of the action.

(d)(3) AUTHORITY OF THE FEDERAL TRADE COMMISSIONCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4).— (A) IN GENERAL.—On receiving notice under paragraph (2) of an action under this subsection, the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4) shall have the right— (i) to intervene in the action; (ii) upon so intervening, to be heard on all matters arising therein; and (iii) to file petitions for appeal. (B) LIMITATION ON 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(g)(7) ACTION WHILE FEDERAL ACTION IS PENDING.—If the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4) or the Attorney General 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(g)(7) has instituted a civil action for violation of this subsection (a) or a regulation promulgated under such subsection (referred to in this subparagraph as the ''Federal action''), no 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(g)(7) attorney general, official, or agency may bring an action under this subsection during the pendency of the Federal action against any defendant named in the complaint in the Federal action for any violation of such regulation alleged in such complaint. (C) RULES OF CONSTRUCTION.— (i) 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(g)(7) AUTHORITY.—For purposes of bringing a civil action under this subsection, nothing in this Act may be construed to prevent an attorney general, 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(g)(7) from exercising the powers conferred on the attorney general, official, or agency by the laws 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(g)(7) to conduct investigations, administer oaths and affirmations, or compel the attendance of witnesses or the production of documentary and other evidence. (ii) PRESERVATION OF 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(g)(7) AUTHORITY.—Nothing in this Act may be construed to preempt, limit, or otherwise affect or restrict the application of any 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(g)(7) law, rule, regulation, requirement, or standard that provides a user with greater or additional rights, remedies, or protections than the rights, remedies, and protections provided under this Act, including any 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(g)(7) law, rule, requirement, or standard governing the licensing, regulation, or discipline of a covered professionCovered professionThe term "covered profession" means a profession that does any of the following: (A) Operates in the finance and insurance sector (as defined in NAICS Code 52). (B) Operates in the health care and social assistance sector (as defined in NAICS Code 62). (C) Provides legal services (as defined in NAICS code 5411). (D) Provides accounting, tax preparation, bookkeeping, and payroll services (as defined in NAICS code 5412).Sec. 2(g)(6) regulated under 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(g)(7) law, including enforcement actions for the unlicensed practice of such profession.

(e)(1)–(5) IN GENERAL.—A person injured by an act or practice in violation of subsection (a) or a regulation promulgated under such subsection may bring in 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(g)(7)— (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 $5,000 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 5 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.

(f) ADJUSTMENT FOR INFLATION FOR CIVIL PENALTIES AND DAMAGES.—Beginning on the date that the Consumer Price Index is first published by the Bureau of Labor Statistics that is at least 1 year after the date of the enactment of this Act, and each year thereafter, the amount specified in subsections (d)(1)(C) and (e)(1)(B) shall be increased by the percentage increase, if any, in the Consumer Price Index published on such date from the Consumer Price Index published the previous year.

(g)(1) APPROPRIATE LICENSEAppropriate licenseThe term "appropriate license" means a permit or authorization required to practice a covered profession, as determined by the State in which the covered entity provides the service.Sec. 2(g)(1).—The term ''appropriate licenseAppropriate licenseThe term "appropriate license" means a permit or authorization required to practice a covered profession, as determined by the State in which the covered entity provides the service.Sec. 2(g)(1)'' means a permit or authorization required to practice a covered professionCovered professionThe term "covered profession" means a profession that does any of the following: (A) Operates in the finance and insurance sector (as defined in NAICS Code 52). (B) Operates in the health care and social assistance sector (as defined in NAICS Code 62). (C) Provides legal services (as defined in NAICS code 5411). (D) Provides accounting, tax preparation, bookkeeping, and payroll services (as defined in NAICS code 5412).Sec. 2(g)(6), as determined by 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(g)(7) in which the covered entityCovered entityThe term "covered entity" means an individual or company that deploys an AI chatbot.Sec. 2(g)(5) provides the service.

(g)(2) AI CHATBOTAI chatbotThe term "AI chatbot" means a system that uses artificial intelligence to engage in interactive conversations with a user similar to the communications that an individual would have with a human.Sec. 2(g)(2).—The term ''AI chatbotAI chatbotThe term "AI chatbot" means a system that uses artificial intelligence to engage in interactive conversations with a user similar to the communications that an individual would have with a human.Sec. 2(g)(2)'' means a system that uses artificial intelligenceArtificial intelligenceThe term "artificial intelligence" or "AI" has the meaning given that term in section 9401 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(g)(3) to engage in interactive conversations with a user similar to the communications that an individual would have with a human.

(g)(3) ARTIFICIAL INTELLIGENCEArtificial intelligenceThe term "artificial intelligence" or "AI" has the meaning given that term in section 9401 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(g)(3); AI.—The term ''artificial intelligenceArtificial intelligenceThe term "artificial intelligence" or "AI" has the meaning given that term in section 9401 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(g)(3)'' or ''AI'' has the meaning given that term in section 9401 of the National Artificial IntelligenceArtificial intelligenceThe term "artificial intelligence" or "AI" has the meaning given that term in section 9401 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(g)(3) Initiative Act of 2020 (15 U.S.C. 9401).

(g)(4) COMMISSIONCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4).—The term ''CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4)'' means the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(g)(4).

(g)(5) COVERED ENTITYCovered entityThe term "covered entity" means an individual or company that deploys an AI chatbot.Sec. 2(g)(5).—The term ''covered entityCovered entityThe term "covered entity" means an individual or company that deploys an AI chatbot.Sec. 2(g)(5)'' means an individual or company that deploys an AI chatbotAI chatbotThe term "AI chatbot" means a system that uses artificial intelligence to engage in interactive conversations with a user similar to the communications that an individual would have with a human.Sec. 2(g)(2).

(g)(6) COVERED PROFESSIONCovered professionThe term "covered profession" means a profession that does any of the following: (A) Operates in the finance and insurance sector (as defined in NAICS Code 52). (B) Operates in the health care and social assistance sector (as defined in NAICS Code 62). (C) Provides legal services (as defined in NAICS code 5411). (D) Provides accounting, tax preparation, bookkeeping, and payroll services (as defined in NAICS code 5412).Sec. 2(g)(6).—The term ''covered professionCovered professionThe term "covered profession" means a profession that does any of the following: (A) Operates in the finance and insurance sector (as defined in NAICS Code 52). (B) Operates in the health care and social assistance sector (as defined in NAICS Code 62). (C) Provides legal services (as defined in NAICS code 5411). (D) Provides accounting, tax preparation, bookkeeping, and payroll services (as defined in NAICS code 5412).Sec. 2(g)(6)'' means a profession that does any of the following: (A) Operates in the finance and insurance sector (as defined in NAICS Code 52). (B) Operates in the health care and social assistance sector (as defined in NAICS Code 62). (C) Provides legal services (as defined in NAICS code 5411). (D) Provides accounting, tax preparation, bookkeeping, and payroll services (as defined in NAICS code 5412).

(g)(7) 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(g)(7).—The term ''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(g)(7)'' means each of the several 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(g)(7), the District of Columbia, each commonwealth, territory, or possession 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(g)(7), and each federally recognized Indian Tribe.