CHATBOT Act

This bill, known as the CHATBOT Act, aims to prevent artificial intelligence (AI) chatbots from misleading users about professional qualifications. It specifically prohibits covered entities from providing AI chatbot output or marketing materials that falsely imply the chatbot possesses an appropriate license to practice a covered profession or that its output is verified by a licensed human. This applies to professions in sectors such as finance and insurance , healthcare and social assistance , legal services , and accounting and tax preparation . The Federal Trade Commission (FTC) is tasked with enforcing these prohibitions, treating violations as unfair or deceptive acts or practices. States are also empowered to bring civil actions on behalf of their residents, seeking injunctions, damages, or other relief, with the FTC having the right to intervene. Furthermore, the bill establishes a private right of action , allowing individuals harmed by violations to sue for damages, injunctions, and attorney's fees, with potential for increased damages for willful or knowing violations. The FTC will issue guidance on compliance, and state laws offering greater protections are preserved.