CHATBOT Act

Key Points

• The bill bans companies from deploying AI chatbots that falsely claim or imply they hold professional licenses in fields like healthcare, law, finance, and accounting. It also prohibits falsely suggesting that a licensed human is verifying the AI's output.
• The law covers four broad professional sectors: finance and insurance, healthcare and social assistance, legal services, and accounting/tax preparation. These are fields where consumers rely heavily on expert, credentialed advice.
• The FTC would enforce the rules, treating violations as unfair or deceptive practices. State attorneys general and individual consumers can also sue for at least $5,000 per violation, with damages tripled for willful violations.
• The bill carves out general information and non-personalized guidance. AI chatbots can still share educational content as long as they do not present themselves as licensed professionals offering specific advice.
• States retain the power to enforce their own professional licensing laws and can set stronger consumer protections than what this federal law requires. The bill does not preempt existing state rules.