Chatbot Laws · verified Oct. 21, 2026
Would bar AI chatbot operators from giving output or marketing that suggests the chatbot holds a professional license it lacks and falsely suggests a licensed human provided or checked it, in finance and insurance, health care, legal, and accounting and tax fields. Enforced by the FTC, states and private suits.
Who it would cover
Any individual or company that deploys an AI chatbot (covered entity), as to output touching finance and insurance, health care and social assistance, legal services, and accounting/tax/payroll professions.
What it would require
| Therapy and licensed titles | A covered entity may not provide chatbot output or marketing that, from a reasonable user's view, suggests a license it does not hold and falsely suggests the output came from or was verified by a licensed human. No affirmative disclosure duty.§ 2(a), § 2(g)(6) |
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Enforcement
| Enforced by | Federal Trade Commission, State attorneys general and officials and Private right of action§ 2(c)-(f) |
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| Private lawsuits | Yes |
| Penalties | Private suit by an injured person for an injunction and actual monetary loss or up to $5,000 per violation, whichever is greater; up to 3 times that for willful or knowing violations; costs and attorney's fees; 5-year limit. State AGs may recover the same per-violation damages for residents. Dollar amounts adjusted yearly for CPI. FTC treats violations as unfair or deceptive practices rule violations. |
Sources
- All actions, Congress.gov Supports: Latest action and dates.
- Cosponsors, Congress.gov Supports: Sponsor and cosponsor count.
- Bill text, Congress.gov Supports: Introduced text, § 2.
- Bill status data (Library of Congress feed, GPO govinfo) Supports: Introduction, referral, 8 cosponsors.
- H.R. 7985 as introduced (text) Supports: Section 2.