This bill aims to protect minors from potential harms associated with companion artificial intelligence (AI) chatbots by imposing strict regulations on their operation. It defines a "companion AI chatbot" as a software system primarily simulating emotional interaction, friendship, or therapeutic communication, excluding certain customer service, video game, and basic voice assistant functionalities. Any entity operating such a chatbot must require user accounts and implement robust age verification processes for both existing and new users, classifying them as either minors or adults. For users identified as minors, the bill mandates several key protections. Covered entities must affiliate the minor's account with a verified parental account and obtain verifiable parental consent before allowing the minor to access the chatbot. Furthermore, the bill requires immediate notification to the parental account if the minor expresses suicidal ideation during an interaction and obligates the chatbot to block any sexually explicit communication. All age verification data must be kept confidential, and chatbots must display a clear popup at the start of an interaction, and every 60 minutes thereafter, to inform users they are not engaging with a human. The Federal Trade Commission (FTC) is tasked with issuing guidance to assist covered entities in complying with these requirements, and violations will be treated as unfair or deceptive acts. Both the FTC and state attorneys general are empowered to enforce the Act, with provisions for civil actions and intervention. A safe harbor provision protects entities that demonstrate good faith reliance on age information, compliance with FTC guidance, and adherence to industry standards for age verification.