AI Advertising Disclosure Act

This bill, known as the AI Advertising Disclosure Act, mandates that "covered tools," defined as AI interactive computer services or software applications with over 50,000 monthly active users, must disclose when their responses include "sponsored content." This requirement applies when an AI tool's response mentions, recommends, or presents a product, service, or entity due to a commercial arrangement, or if the response is influenced by such an arrangement, including through brand-specific mentions or affiliate links. Disclosure is also necessary if the AI-generated content utilizes system prompts, retrieval-augmented generation sources, or fine-tuning data provided or funded by a third party under a commercial agreement. The disclosures must be clear and conspicuous , visible without scrolling, in plain language, and identify the specific nature of the commercial relationship, such as a paid promotion or affiliate partnership. These disclosures must be retained if the conversation is saved, exported, or shared, and cannot be obscured by design, color, font size, or placement. The bill also prohibits AI tools from denying their AI nature or commercial relationships when directly asked, using design patterns to obscure disclosures, or presenting sponsored content as the product of organic AI reasoning. Furthermore, covered entities are obligated to maintain an internal, real-time registry of all third-party commercial arrangements that influence AI-generated content and must provide users with the ability to ask if a response was subject to such an arrangement. The Federal Trade Commission is directed to issue regulations and enforce these provisions, treating violations as unfair or deceptive acts or practices. States and individuals are also granted the ability to bring civil actions for violations, including seeking injunctions, damages, and attorney's fees.