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HB325 INTRODUCED
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HB325
NRXE6T8-1
By Representatives Moore (P), Bedsole, DuBose, Robbins, Gray,
Shaw, Chestnut, Hassell
RFD: Judiciary
First Read: 22-Jan-26
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NRXE6T8-1 1/13/2026 EGC (L)EGC 2025-3382
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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.
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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
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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.
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