SB640 mandates disclosure of chatbot use in commercial transactions and sets penalties for non-compliance.

SB640 requires corporations, organizations, or individuals to disclose when consumers are interacting with an artificial intelligence chatbot. The bill prohibits using chatbots that mimic human behavior without clear disclosure. It allows injured consumers to sue for damages, including a minimum recovery of $1,000 or threefold damages, whichever is greater, and reasonable attorney's fees. The attorney general can also seek injunctive relief. Violations are considered unfair or deceptive practices, subject to a civil penalty of up to $5,000,000.

SB640 mandates disclosure of chatbot use in commercial transactions and sets penalties for non-compliance.

SB640 requires corporations, organizations, or individuals to disclose when consumers are interacting with an artificial intelligence chatbot. The bill prohibits using chatbots that mimic human behavior without clear disclosure. It allows injured consumers to sue for damages, including a minimum recovery of $1,000 or threefold damages, whichever is greater, and reasonable attorney's fees. The attorney general can also seek injunctive relief. Violations are considered unfair or deceptive practices, subject to a civil penalty of up to $5,000,000.