HB325 • 2026

AI chatbots; unfair or deceptive trade practice for failing to notify consumer about AI chatbot; private right of action and enforcement provided for

Technology

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Moore (P)
Last action: 2026-01-22
Official status: Pending Committee Action in House of Origin
Effective date: Not listed

Plain English Breakdown

The bill defines 'Chatbot' as including visual mediums but Section 2 only explicitly requires notification for textual or aural conversations; it is unclear if the notification requirement extends strictly to video-only interactions.

HB325: Rules for AI Chatbots in Business

This bill makes it an unfair trade practice to use AI chatbots in commercial transactions without telling customers they are talking to a computer, not a human.

What This Bill Does

Requires businesses to tell consumers at the start of each interaction that they are communicating with a computer, not a human.
Requires businesses to remind consumers at regular intervals during continuing interactions that they are speaking with a computer.
Makes failing to give this notice an unfair or deceptive trade practice if a consumer might reasonably believe they are talking to a person.
Allows consumers who break these rules to sue in court for money damages up to $1,000 per violation and orders to stop the behavior.
Limits total class action lawsuit awards to no more than $10 million.
Gives the Attorney General power to sue violators to stop them from continuing violations and seek civil penalties of up to $5 million.

Who It Names or Affects

Businesses or persons using AI chatbots for commercial transactions in Alabama where a consumer might think they are talking to a human.
Consumers who interact with these businesses through text or audio conversations.
The Attorney General's office responsible for enforcing the law.

Terms To Know

AI Chatbot: A generative artificial intelligence program that users can talk to using text, sound, or video interfaces.
Unfair or Deceptive Trade Practice: An action by a business that breaks rules about honest selling and service, such as hiding the use of an AI chatbot.
Private Right of Action: The legal ability for an individual consumer to file their own lawsuit in court if they are harmed by this law being broken.

Limits and Unknowns

This rule only applies when a consumer might reasonably believe they are talking to a human.
The bill does not define exactly how often 'regular intervals' must happen during long conversations.
The rules apply specifically to commercial transactions, so it is unclear if non-sales interactions are covered.

Bill History

2026-01-22 House
Pending Committee Action in House of Origin
2026-01-22 House
Read for the first time and referred to the House Committee on Judiciary

Official Summary Text

AI chatbots; unfair or deceptive trade practice for failing to notify consumer about AI chatbot; private right of action and enforcement provided for

Current Bill Text

Read the full stored bill text

HB325 INTRODUCED
Page 0
HB325
NRXE6T8-1
By Representatives Moore (P), Bedsole, DuBose, Robbins, Gray,
Shaw, Chestnut, Hassell
RFD: Judiciary
First Read: 22-Jan-26
1
2
3
4
5
6
NRXE6T8-1 1/13/2026 EGC (L)EGC 2025-3382
Page 1
First Read: 22-Jan-26
SYNOPSIS:
This bill would deem the engagement with
consumers in commercial transactions by a person
through AI chatbots without notifying the consumer that
the consumer is communicating with a computer, and not
a human being, as an unfair or deceptive trade
practice.
This bill would create a private right of action
for consumers who are subjected to commercial
transactions that violate the provisions of this act.
This bill would authorize the Attorney General
to bring suit to enforce this act.
A BILL
TO BE ENTITLED
AN ACT
Relating to AI chatbots; to prohibit persons from
engaging with consumers in commercial transactions through AI
chatbots without notifying the consumer that the consumer is
communicating with a computer; to make this violation an
unfair or deceptive trade practice; to provide a private right
of action for consumers for violations; and to authorize the
Attorney General to bring suit to enforce this act.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
HB325 INTRODUCED
Page 2
Attorney General to bring suit to enforce this act.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. For the purposes of this act, the following
terms have the following meanings:
(1) ARTIFICIAL INTELLIGENCE or AI. The term as defined
in Section 17-5-16.1, Code of Alabama 1975.
(2) CHATBOT. A generative artificial intelligence
program with which users can interact by or through an
interface that approximates or simulates conversation through
a text, audio, or visual medium.
(3) CONSUMER. The term as defined in Section 7-1-201,
Code of Alabama 1975.
(4) GENERATIVE ARTIFICIAL INTELLIGENCE. A class of AI
models that emulate the structure and characteristics of input
data to generate derived synthetic content, including, but not
limited to, images, video, audio, text, and other digital
content.
Section 2. (a) A person that engages in a commercial
transaction or trade practice with a consumer through an AI
chatbot, in textual or aural conversation, where the consumer
may reasonably believe the consumer is engaging with a human,
shall notify the consumer verbally or in writing:
(1) At the beginning of each interaction that the
consumer is communicating with a computer, not a human; and
(2) At a regular interval for continuing interactions
that the consumer is communicating with computer, not a human.
(b) Failure to comply with the provisions of this act
is an unfair or deceptive trade practice.
Section 3. (a) A consumer who is subjected to a
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
HB325 INTRODUCED
Page 3
Section 3. (a) A consumer who is subjected to a
commercial transaction that violates Section 2(a) of this act
may bring a civil action to recover the following relief:
(1) Injunctive relief.
(2) Damages in an amount equal to the sum of any actual
damages, as well as statutory damages not to exceed one
thousand dollars ($1,000) per violation.
(b) In the case of a class action lawsuit, the court
may not award damages in excess of ten million dollars
($10,000,000).
Section 4. Whenever it appears to the Attorney General,
either upon complaint or otherwise, that a person has violated
or is about to violate Section 2(a) of this act, the Attorney
General may bring an action against a person to:
(1) Enjoin the person from continuing the violation;
(2) Seek civil penalties of up to five million dollars
($5,000,000) for a violation under this act; and
(3) Seek any other remedies as the court may deem
appropriate.
Section 5. This act shall become effective on October
1, 2026.
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76