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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

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 official source does not provide specific details on enforcement mechanisms or the exact scope of commercial interactions covered by the bill.

AI Chatbots Must Tell Consumers They Are Talking to a Computer

This bill requires businesses using AI chatbots in commercial transactions to inform consumers that they are communicating with an artificial intelligence, not a human. It also allows consumers and the Attorney General to take legal action if this rule is broken.

What This Bill Does

  • Requires businesses to tell customers at the start of each interaction that they are talking to an AI chatbot, not a person.
  • Allows people who were misled by AI chatbots to sue for damages up to $1,000 per violation and get court orders to stop such practices.
  • Gives the Attorney General power to sue businesses that break this rule and impose fines of up to $5 million.

Who It Names or Affects

  • Businesses using AI chatbots in commercial transactions with consumers.
  • Consumers who interact with AI chatbots believing they are talking to a human.

Terms To Know

AI
Artificial Intelligence, which is technology that can perform tasks usually done by humans.
Chatbot
A computer program that simulates human conversation to interact with users.

Limits and Unknowns

  • The bill does not specify what happens if a business fails to notify consumers about AI chatbots before October 1, 2026.
  • It is unclear how the bill will be enforced and whether it will cover all types of commercial interactions.

Bill History

  1. 2026-01-22 House

    Pending Committee Action in House of Origin

  2. 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
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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.
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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
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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.
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